State Hold Laws and Elder Financial Exploitation Survey Report

To protect older customers from the growing threat of elder financial exploitation, banks have implemented protective measures including staff training, customer education, enhanced fraud investigations, and collaboration with law enforcement and adult protective services (APS).

States have also taken strong action — about half have “hold” laws that allow banks to delay disbursements or hold transactions when they suspect financial exploitation of an older or vulnerable person. 

To better understand how banks are utilizing these laws, the ABA Foundation conducted a national survey Sept. 9 – Oct. 8, 2024. Key findings include:

• Prevalence of Hold Laws: More than half (54.4%) of the respondents conduct business in states with hold laws. 
• Utilization of Hold Laws: Among these banks, half have used the laws to hold transactions, leveraging the time to contact a trusted family member or friend, collaborate with law enforcement or APS, or dissuade customers from transferring their money to a would-be thief.
• Call for Longer Hold Periods: Over half (52.4%) of respondents utilizing state hold laws believe longer hold periods are needed to accommodate thorough investigations and, when necessary, interventions. 
• Effectiveness: Nearly half (43%) of respondents utilizing state hold laws report that the laws have been useful in preventing elder financial exploitation.
• Support for Passage of Hold Laws: Almost 90% of respondents in states without hold laws said such a law would be beneficial. 

Download the report to view the full survey findings.