DENVER— Colorado lawmakers are considering legislation that would give banks and credit unions expanded authority to intervene when they suspect a customer—particularly an older or vulnerable adult—is the target of financial exploitation.
House Bill 26-1110, known as the Adults’ Security and Safeguards from Exploitation in Transactions (ASSET) Act, would establish new procedures allowing financial institutions to slow or halt suspicious transactions and alert authorities when fraud is suspected.
Under the proposal, a designated employee at a bank or credit union who reasonably suspects financial exploitation of a vulnerable adult would be required to notify local law enforcement or the county agency responsible for adult protective services. The institution could also contact a trusted third party previously identified by the customer or someone reasonably connected to the account holder, provided that person is not suspected of involvement in the fraud.
The bill would also allow financial institutions to temporarily delay a withdrawal or transfer if they believe the transaction could result in financial exploitation. In such cases, the institution would have to notify authorized parties on the account—except anyone suspected of wrongdoing—within two business days and begin an internal review.
A delay could remain in place until investigators determine exploitation is not occurring, law enforcement or adult-protective authorities complete their review, or a court orders the hold to be lifted. Financial institutions must reach a determination within 90 days, or up to 180 days if they are awaiting the outcome of an external investigation, the bill states.
The legislation would also require financial institutions to provide relevant account records to law enforcement or adult-protective services investigating suspected exploitation. Those records would not be treated as public documents under the Colorado Open Records Act.
To encourage intervention, the bill grants banks, credit unions and their employees immunity from liability for actions taken in good faith when reporting suspected fraud, delaying transactions, or sharing information with authorities under the law.
Supporters say the measure is intended to give frontline banking staff clearer legal authority to intervene in suspected scams, particularly those targeting seniors or adults unable to fully manage their financial affairs. Colorado law generally defines an “eligible adult” as someone age 70 or older or an adult who cannot adequately care for themselves or manage financial decisions.