The American Bankers Association (ABA) Foundation's 2025 Survey of State Elder Financial Exploitation Laws offers valuable insights into how financial institutions are navigating the complex terrain of protecting older adults from fraud. Released in March 2025, the report highlights the role of "hold" laws, statutes that allow financial institutions to temporarily delay or hold suspicious transactions, in preventing losses that could jeopardize seniors' ability to age in place. Amid rising elder fraud complaints, which increased 14% in 2023 with estimated losses of $61.5 billion, per the Federal Trade Commission (FTC), these findings are crucial for elder law planning.
This article summarizes the survey's key results, explains state hold laws (with a focus on Ohio and Missouri), what consumers should know, and how seniors and families can benefit from, utilize, or advocate for these protections.
Survey Results: Banks' Use of Hold Laws and Challenges in Fraud Prevention
Conducted from September 9 to October 8, 2024, the ABA survey polled 158 U.S. banks holding 71% of industry deposits, including 53.2% with assets under $1 billion. Key findings include:
- Prevalence of Hold Laws: As of January 2025, about half of U.S. states have enacted hold laws for depository institutions, typically applying to individuals aged 60-65 or older, or those deemed vulnerable under Adult Protective Services (APS) criteria. These laws lack a federal equivalent but often provide "safe harbor" protections from litigation for good-faith actions.
- Utilization and Effectiveness: 54.4% of respondents operate in at least one state with hold laws, and among them, 50% have used these laws to delay, refuse, or hold transactions. This allows time for investigations, contacting trusted third parties, and collaborating with authorities. Utilization frequency varies: 40.5% rarely, 23.8% a few times monthly, and higher in some cases. 43% of utilizing banks find the laws useful in preventing exploitation, though 33.3% say it's too early to tell. Nearly 90% of banks in non-hold states believe such laws would be beneficial.
- Collaborations and Challenges: Banks extensively partner with law enforcement (91.8% report suspicious activity) and APS (93.8% report cases), but challenges include litigation risks, inconsistent state laws, under-resourced agencies, and customer unawareness. Customer reactions to holds are often negative (45.2%), sometimes leading to account closures (16.7%), but vary by situation.
- Recommendations: Banks advocate for federal legislation for consistency, stronger safe harbors, customer education, bank-to-bank communication, and flexible hold periods (e.g., up to 30 days, as desired by 28.6%). These results emphasize the importance of hold laws as a vital tool, preventing losses like a $30,000 scam in New Hampshire, but highlight the need for improvements to address lengthy investigations and customer education.
Understanding State Hold Laws: Transaction Holds and Delayed Disbursements
State hold laws authorize financial institutions to place temporary holds on transactions or delay disbursements when exploitation is suspected, providing a window for verification without immediate fund release. Typically lasting 3-15 business days (extendable), they include mandatory reporting to APS or law enforcement, staff training in some states, and authorization to contact trusted contacts. Safe harbors protect banks from liability if actions are in good faith. Holds may be mandatory if directed by authorities. In practice, banks use them to investigate red flags like unusual transfers, educate customers, and prevent irreversible losses.
Hold Laws in Ohio and Missouri
As of October 2025, neither Ohio nor Missouri has enacted specific transaction hold laws for financial institutions in cases of suspected elder financial exploitation, according to FTC overviews and state statute reviews. Instead, both states focus on reporting and penalties:
- Ohio: Ohio mandates reporting suspected exploitation to the Division of Securities and county Job and Family Services under its "Reporting Elder Financial Exploitation" law, Ohio Revised Code (ORC) §1707.49. Banks must report to APS or law enforcement, but without hold laws, they lack explicit authority to delay transactions, increasing litigation risks. Protections exist under broader elder abuse statutes (e.g., ORC § 5101.60 et seq.), with penalties for exploitation including misdemeanors to felonies. No hold durations or extensions apply, but safe harbors for good-faith reporting are available.
- Missouri: Missouri's RSMo Section 570.145 criminalizes financial exploitation with penalties ranging from misdemeanors (under $50) to class A felonies ($75,000+), including defenses for good-faith efforts but no specific holds. Reporting is mandated to APS, with investigations for abuse, neglect, or exploitation. Note that RSMo Section 192.2455 addresses recipient inability to give consent but lacks hold provisions. Banks in Missouri use trusted contacts and law enforcement partnerships, but without holds, interventions are limited.
What Consumers Should Know About Hold Laws
Consumers, especially seniors and retirees, should understand that hold laws (in about half of states) allow banks to pause suspicious transactions for older or vulnerable adults, buying time to verify the legitimacy of the transaction. They typically require reporting to APS/law enforcement and may involve notifying trusted contacts. Safe harbors protect banks from liability, but consumers might experience temporary inconveniences. In states without them, like Ohio and Missouri, banks rely on reporting and voluntary programs, potentially leaving gaps in protection. Know your rights: Holds are protective, not punitive, and can be challenged if unwarranted.
How Consumers Can Benefit From, Utilize, or Encourage Hold Laws
Hold laws benefit consumers by preventing irreversible losses from scams, as seen in survey examples where holds saved thousands. For aging in place, preserved savings mean continued home care funding. Moreover, holds prevent losses that may cause family disputes, punitive actions against family members due to oversight failures, or the loss of a senior's decision-making authority through guardianship or conservatorship. To utilize:
- Designate Trusted Contacts: At your bank, name a reliable person for notifications during suspicions, essential in all states.
- Educate Yourself: Attend bank workshops or use resources from AARP's Fraud Watch Network to recognize red flags.
- Respond Proactively: If a hold occurs, cooperate with investigations to resolve quickly.
In Ohio and Missouri, and other states without hold laws, encourage adoption by contacting legislators or banker associations to advocate for federal consistency and safe harbors. By supporting reform, consumers can push for broader protections, ensuring safer aging in place.
To safeguard against the rising tide of financial exploitation, older consumers and their families are strongly encouraged to schedule a meeting with a bank representative to explore the voluntary programs available at their financial institution. These may include trusted contact designations, which allow banks to reach out to a pre-approved family member or advisor during suspicious activity; transaction alerts for unusual withdrawals or transfers; and enhanced monitoring tools tailored for seniors. By discussing these options in person or virtually, you can learn how to easily implement them. This includes setting up account notifications via app or email, or integrating them with elder law tools like powers of attorney, to add an extra layer of protection without compromising autonomy. This proactive step not only empowers you to customize defenses against fraud but also fosters peace of mind, ensuring your hard-earned savings support independent living and aging in place.
For personalized advice, consult an elder law attorney. Visit our "Handy Link" for Ohio reporting or explore FTC tools for nationwide alerts.
Stay vigilant; knowledge is your best defense.
