Committee advances bill letting banks and brokers pause suspected elder‑fraud transactions; supporters cite rapid prevention needs

BOISE — The House Business Committee on March 3 advanced House Bill 323, a measure that gives financial institutions authority to temporarily freeze or delay transactions they reasonably suspect are the product of financial exploitation of a vulnerable adult or a person 65 and older.

Representative Jeff Ehlers, R‑Meridian, sponsored the bill and said it mirrors legislation enacted in roughly 40 other states. “This provides a tool that the financial institutions are looking forward to hopefully help slow down fraud,” Ehlers said, describing the bill as targeted to urgent, high‑pressure frauds that often push seniors to quickly move cash, including through crypto‑ATMs.

Under the bill’s language as presented, a “reporting person” — defined in the draft as a broker‑dealer, investment adviser or financial institution — may place a temporary hold on a transaction and notify law enforcement, the Department of Finance (the bill’s authorized agency) and other account holders who are not suspected of participating in the fraud. The bill sets an initial 15‑day pause for investigation, with a potential single 15‑day extension if more time is needed.

Witnesses who testified in support included Terry Durden, legal counsel for the Ada County Sheriff and the Idaho Sheriffs Association, who said Ada County recorded 249 instances from 2022‑24 in which the proposed authority might have stopped a loss. “The total amount of money lost just for the ACSO is over $4,000,000,” Durden said, describing repeated examples of seniors instructed to load cash into Bitcoin machines by fraudsters. Several law‑enforcement witnesses and retired investigators said banks are uniquely positioned to intervene early and contact investigators.

Brad Thorn, a longtime investigator of cyber‑enabled fraud, and Mike Schenck, CEO of Westmark Credit Union, described frequent cases in which staff suspected exploitation but lacked a clear statutory vehicle to pause transfers. Lisa Anderson of AARP Idaho said community organizations, law enforcement and financial institutions together “safeguard our seniors,” and Adam Gana of the Public Investors Advocate Bar Association spoke in support while urging stronger mandatory duties in future changes.

Legal concerns were raised about the bill’s language. Attorney Jeffrey Street told the committee the bill currently makes the reporting action permissive (uses “may”) and grants immunity language with high evidentiary phrases (for example, “clear and convincing” and “specific intent”), which could blunt enforcement or create litigation complexities. Street recommended either amending the statutory language or holding the bill for additional work to align duties and immunity with intended protections.

Committee members asked where law enforcement fits in the process; Ehlers and witnesses said the Department of Finance is the authorized agency to coordinate notifications and that local law enforcement would be notified as part of the reporting pathway when appropriate.

Representative Palmer moved to send HB 323 to the floor with a do‑pass recommendation; the committee approved the motion by voice vote.

Next steps: HB 323 will proceed to the House floor. Supporters said the new authority will let financial institutions interpose a brief pause on suspicious transactions so investigators and family members can evaluate whether a transfer is fraud.