A new law here in Oklahoma is giving banks and credit unions more tools to protect seniors from financial scams. The legislation, which went into effect recently, allows financial institutions to place temporary holds on transactions when they suspect a “protected adult” is being exploited.

The term “protected adult” generally refers to folks aged 60 and older, as well as certain vulnerable adults. Under the law, banks and credit unions can hold incoming or outgoing funds for up to 10 business days if they believe fraud or exploitation is happening. This gives time to investigate and, if necessary, prevent funds from falling into the wrong hands.

How It Works

When a suspicious transaction is flagged, financial institutions are required to report it to the appropriate agencies. These include Adult Protective Services under the Department of Human Services, local district attorneys, and law enforcement. By doing so, authorities can step in to investigate and take further action if needed.

The law also allows banks to contact a “trusted contact” designated by the account holder. This person can be notified if something seems off, without affecting the account’s ownership. It’s a way to loop in someone the account holder trusts while keeping their finances secure.

Why It Matters

Scammers often target older adults, preying on their trust and sometimes their isolation. According to reports, financial exploitation is one of the most common forms of elder abuse, costing seniors billions of dollars nationwide each year. Here in Oklahoma, cases of fraud targeting seniors have been on the rise in recent years.

For example, many folks have reported scams involving fake IRS calls, lottery winnings, or even imposters pretending to be family members in need of emergency money. These scams can drain life savings in a matter of hours. This new law aims to stop these crimes in their tracks by giving financial institutions the authority to act quickly.

What Banks Can Do

• Place a temporary hold on suspicious transactions for up to 10 business days.
• Report suspicious activity to Adult Protective Services, local district attorneys, and law enforcement.
• Notify a trusted contact designated by the account holder.

It’s worth noting that the law doesn’t just protect the account holder. It also provides legal protections for banks and credit unions that take action in good faith. This ensures they can step in without fear of liability if their intentions are to prevent fraud.

What to Watch For

Folks should be aware of common warning signs of scams. These include unexpected requests for money, especially via wire transfers or gift cards, or messages claiming you’ve won a prize but need to pay a fee to claim it. If you or someone you know suspects fraud, it’s important to contact your bank or credit union immediately.

For seniors, it’s also a good idea to set up a trusted contact with your financial institution. This can be a family member, close friend, or someone else you trust to be notified if there’s suspicious activity on your account. It’s a simple step that could make a big difference.

What’s Next

Oklahoma lawmakers and advocates for seniors are hopeful this new law will make a real impact. By giving financial institutions the tools they need to act quickly, the goal is to reduce the number of seniors falling victim to scams.

If you have questions about the law or need help setting up a trusted contact, reach out to your local bank or credit union. And remember, if something feels off, it’s always better to double-check before sending money.