Written by Kerry R. Peck, Managing Partner of Peck Ritchey
On January 1, 2025, a new law took effect in Florida which allows banks to place temporary holds on transactions if they appear to be connected to suspicious activity. This law, known as a “report and hold” law, can protect customers from falling victim to financial scams. This Florida law aims to protect adults 65 years or older and other protected account holders – those at a “statistically higher risk” of being exploited by financial scammers.
Through this law, banks are given the discretion to place a temporary hold on suspicious transactions. “[The law] includes the provision that if banks use this law in good faith, and comply with statutory requirements, they should not be civilly liable,” says Karen Murillo, advocacy manager for AARP Florida, which championed the legislation.
Prior to the enactment of this law, banks were often unable to place a temporary hold on money transfers even if they were notified by law enforcement personnel that the transfer was fraudulent. Banks required entry of a court order prior to interfering with a customer’s money transfer. Unfortunately for the victims of financial scams, court orders take time to obtain, potentially leading to further financial exploitation.
Take Leslie Fumega, 79, for example. One day, Leslie received a call from someone claiming to be with the local police and the Federal Bureau of Investigation (FBI). They informed her that her identity had been stolen and in order to protect herself, she needed to send cash to a secure location. Over the course of six weeks, Leslie withdrew cash from her bank in increments of $10,000 to $20,000 to mail to the “FBI agent.” In total, Leslie sent $165,000 from her own bank account to the address she was given.
Without this new law in effect at the time of Leslie’s financial exploitation, her bank was unable to intervene and stop these substantial withdrawals. However, with this law, banks will have the ability to place a hold on a suspicious transaction or withdrawal until they can confirm with the customer that it is for a legitimate purpose.
To delay a transaction or withdrawal, the bank must first alert both the account holder and a trusted contact as to the reason for the delay. Next, an internal investigation into the suspected exploitation is conducted. If the bank determines there is no risk of exploitation, the temporary hold will be lifted and processed as usual.
To further protect yourself from financial exploitation, check in with your bank to see if they allow you to name a trusted contact. This will add an extra layer of protection if bank employees are concerned that you are a victim of financial exploitation. This is highly beneficial for those with dementia or Alzheimer’s disease, as they can have a trusted secondary person on their account. Additionally, avoid answering calls or text from unknown numbers and be suspicious of anyone who tells you to keep your conversation a secret. Be on high alert if these situations arise.
Vulnerable communities, such as those with dementia and Alzheimer’s disease, will benefit from the passing of laws such as this one, as banks can intervene on their behalf. Overall, knowing the signs of a financial scam is an important first step in protecting yourself and your loved ones from exploitation.
The Law firm of Peck Ritchey, LLC, affiliated for many years with the Illinois Chapter of the Alzheimer’s Association, has recently been named the Legal Education Partner of the Association. Kerry Peck, Managing Partner of Peck Ritchey, LLC serves as Chair of the Illinois Supreme Court Commission on Elder Law and previously as President of the Chicago Bar Association. Mr. Peck is Co-Author of Alzheimer’s and the Law and Don’t Let Dementia Steal Everything, books which he wrote at the request of the American Bar Association. Kerry Peck served on the Association’s Board for many years and the Law Firm was honored last year by the Alzheimer’s Association. Peck Ritchey LLC is a one-stop shop for families navigating the devastating effects of a loved one with Alzheimer’s Disease.