New laws allow banks to help scam victims

Leslie Fumega, 79, received a call last year from someone claiming to be with local police and the FBI. His identity had been stolen and his accounts were in danger, he told her. To protect himself, a man claiming to be an FBI agent said, he needed to withdraw cash from his bank in increments of $10,000 to $20,000 and mail it to a safe location.

Over the next six weeks, Fumega withdrew a total of $165,000 from different branches of his bank and mailed them to addresses provided by the “agent.” When she finally revealed what was happening to her daughters, they convinced her that she was the victim of an elaborate scam. They were right. His savings were gone.

In an ideal world, the bank would have had a way to detect unusual transactions and intervene somehow; perhaps even freeze them until they could confirm that Fumega’s withdrawals were for legitimate purposes. However, banks generally cannot stop authorized transactions like Fumega’s without facing a potential lawsuit from the customer.

But new laws are trying to change that. Known as “report and hold” laws, they give banks the option of holding a suspicious transaction.

Florida’s new law

Such a statute will take effect in Florida on January 1. It allows a bank to temporarily delay a transaction linked to suspected exploitation of an adult age 65 or older, as well as other protected account holders – Floridians who “are statistically better off.” risk” of being exploited, the law says.

“We received reports of banks that could not stop or delay a money transfer even if authorities notified them that the money was going to a scammer, unless they obtained a court order, which takes time,” says Karen Murillo, advocate of human rights. AARP Florida manager, who championed the legislation. “It includes the provision that if banks use this law in good faith and comply with legal requirements, they should not be held civilly liable.”

To carry out a delay, a bank must notify the account holder and a listed contact of the reason for the delay, as well as conduct an internal investigation into suspected exploitation. If the bank determines that the account holder is no longer at risk of exploitation, it can lift the delay and allow the transaction to proceed. Murillo notes that the new law highlights how including a trusted contact in your account can help protect your money.