Trending
Bank employees would be empowered to freeze financial transactions if they believe an elderly person is being targeted by fraudsters under legislation approved Wednesday by the state Senate.
Senate Bill 738 would also require banks to notify aging protective services and law enforcement in certain situations, including if the victim has diminished cognitive capacity or bank officials believe a person with access to the victim's account is involved in the fraud.
Under the legislation, banks would be able to freeze the transaction for seven days and officials could extend the freeze for 15 days.
The bill was approved by a 47-2 vote.
Sen. Chris Gebhard, R-Lebanon, said the legislation approved by the Senate Wednesday is the result of "several years" of negotiations between lawmakers, officials in Gov. Josh Shapiro's administration, the attorney general and financial industry officials.
"I am extremely proud of this product and the collaborative way that it has come together," Gebhard said ahead of the floor vote.
Sen. Sharif Street, D-Philadelphia, said the legislation will provide an important tool to help combat the growing problem of financial exploitation of senior citizens.
"Senate Bill 738 addresses an issue that we all know is a challenge," he said. "The technology continues to change and folks who want to scheme and fraudulently take money from our seniors continue to innovate."
The FBI ranked Pennsylvania ninth in total losses to fraud experienced by older adults in 2025.
Similar legislation took effect in Georgia on July 1. At least 33 states have similar laws in place.
Attorney General David Sunday urged lawmakers to pass the legislation at an August hearing convened by the House and Senate Republican policy committees.
Sunday said the transaction freezes authorized by the legislation will create opportunities to intervene before victims see their accounts drained.
"That pause is critical to allow a potential victim to realize they are being defrauded of their money because once it's gone, it is gone," he said.
About 7,100 older adults in Pennsylvania were bilked out of almost $216 million through online scams last year, according to federal
data. Scams targeting seniors was up 12% in 2025 compared to 2024 and the amount of money lost to fraudsters was up 44%.
Investment scams are now the fastest-growing type of financial fraud targeting seniors, officials say. Older adults in Pennsylvania lost more than $98 million in investment scams in 2025, a 75% increase over the prior year.
In addition to the other requirements, SB738 directs the Department of Banking and Securities to develop a training program to help bank workers identify indications that a transaction is fraud-related.
The banking and securities department would also be required to compile an annual report listing:
– Number of reports of fraud stopped
– The average time it took for law enforcement or older adult protective services to respond to a bank's alert about suspected fraud
– The number of transactions and the monetary value involved; the number of transactions that were confirmed as fraud
– The number and value of transactions that were eventually allowed to go through after officials determined they were not fraudulent
SB 738 now goes to the House for consideration. To make it through the House, lawmakers in the chamber typically must consider legislation on three different days. The House has eight session days scheduled before the end of the legislative session.