When a scammer convinces someone to transfer money, the transaction can happen quickly. By the time the victim realizes something is wrong, the money may already be on its way to the fraudster.
A new Maryland law gives certain banks and other financial institutions additional tools to intervene when they suspect financial exploitation.
The Vulnerable Adult Banking Protection Act, enacted as Chapter 510 in 2026, took effect October 1, 2026. The law is designed to help protect eligible adults, including Maryland residents who are at least 65 years old or who qualify as vulnerable adults, from financial exploitation.
What Does the New Maryland Law Do?
Under the new law, a fiduciary institution may, in certain circumstances, delay or deny a disbursement when it reasonably believes an eligible adult is being financially exploited.
The law also allows financial institutions to take certain additional steps, including providing financial records to specified entities and contacting certain individuals about suspected exploitation.
The goal is not to give banks unlimited authority to block transactions. Instead, the law creates a framework for intervention when specific circumstances suggest that an older or vulnerable customer may be the target of financial exploitation.
What Counts as Financial Exploitation?
Maryland law broadly recognizes financial exploitation as wrongful or unauthorized conduct involving an eligible adult’s money, assets, or property. It can include taking or using property without authorization or using deception, intimidation, or undue influence to obtain control over someone’s finances.
This could potentially involve scams in which someone pressures an older adult to send money, impersonates a trusted person, or otherwise manipulates the person into making a financial transaction.
Can a Bank Stop Any Suspicious Transaction?
Not necessarily. The new law does not mean every suspicious transaction will automatically be stopped. The circumstances must fall within the requirements established by the statute, and the financial institution must act within the authority provided by the law.
A delay or denial may therefore depend on what the institution knows, the customer’s circumstances, and the information available at the time. A bank may not always recognize a scam before a transaction occurs, particularly when a customer has personally authorized the payment.
What Protections Do Banks Receive?
The law also provides important protections for financial institutions that act in good faith and exercise reasonable care. Under the new statute, qualifying institutions receive immunity from certain administrative or civil liability arising from providing required notices or delaying or denying a disbursement under the law.
This protection is intended to make financial institutions more comfortable taking reasonable action when they identify possible exploitation.
What Should You Do If You Are the Victim of a Scam?
Even with the new protections, a bank cannot prevent every scam. If you believe you have been defrauded, contact your financial institution as soon as possible and preserve records of the transaction and communications with the suspected scammer.
Depending on the circumstances, you may also have legal options for pursuing the person responsible or addressing losses resulting from the fraud.
Talk to Holland Law Firm
Financial scams can cause significant financial and emotional harm, particularly when a victim is pressured or deceived into giving someone access to their money.
Maryland’s new law gives certain financial institutions additional tools to respond to suspected exploitation, but understanding what protections apply can depend on the details.
At Holland Law Firm, we help Maryland clients understand their legal rights after financial fraud and other harmful conduct. If you or a family member has been affected by a scam, contact us today—legal guidance can help you understand your options and determine what steps may be available.