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Committee introduces measure to let banks and credit unions pause suspected fraud for seniors
Summary
RS32195 Change 1 was introduced to give financial institutions authority to place short holds and investigate transactions suspected to be fraud targeting people aged 65 and older and vulnerable adults; the committee voted to introduce the RS.
Representative Jeff Ehlers, District 21 of Meridian, introduced RS32195 Change 1 on Feb. 7, describing it as a tool for financial institutions to prevent exploitation of seniors and vulnerable adults.
"This RS relates to preventing financial fraud among senior citizens aged 65 and older and vulnerable adults," Representative Jeff Ehlers said. He told the committee the proposal would allow financial institutions that have "good reason to believe" a transaction is fraudulent to place a hold, perform an initial investigation and coordinate with law enforcement and the Department of Finance while a fuller inquiry proceeds.
Representative Marmon asked why a law was needed if institutions could adopt similar protections in policy. Representative Baylors replied that putting the authority in statute provides legal protection to institutions handling suspected exploitation so they are not later sued by customers upset about a hold. Representative Goody moved to introduce RS32195 Change 1 on behalf of Representative Wheeler; the motion carried by voice vote.
The committee did not record extended public testimony on the RS during the special meeting. Sponsor remarks indicated the RS is intended to balance enabling financial institutions to act quickly with coordinating with law enforcement and regulators for further investigation.
