Pennsylvania Senate Passes Bill Letting Banks Freeze Suspicious Transactions to Stop Elder Scams: What SB 738 Would Do

October 2, 2026
Posted by AmyGinsburg

A caller claiming to be from the bank, the IRS or a grandchild in trouble tells an older Pennsylvanian to withdraw thousands of dollars, buy gift cards or wire money to a “safe” account. A bank teller suspects a scam but has little power to stop the transaction. A bill that just cleared the Pennsylvania Senate aims to change that.

On September 30, 2026, the Senate passed Senate Bill 738, sponsored by Sen. Chris Gebhard (R-Lebanon), by a vote of 47-2. The bill would add a new chapter, “Prevention of Financial Exploitation,” to Pennsylvania’s Older Adults Protective Services Act. Under that Act, an “older adult” is anyone 60 or older. The same day, the bill was referred to the House Aging and Older Adult Services Committee. It is not law yet. The House still has to pass it and the Governor has to sign it. WGAL reported that the House could take it up as soon as next week, although the House has only a few session days left this year. Attorney General Dave Sunday publicly welcomed the Senate vote.

What SB 738 would do

The summary below follows the version the Senate passed (Printer’s No. 1867). The House can still change it.

Banks could hit pause. If a bank, credit union or other covered financial institution has reasonable cause to believe an older adult is being financially exploited, it could hold, refuse or prevent the transaction. That covers withdrawals, transfers to another person’s account, changes in account ownership, and instructions from an agent acting under a power of attorney.
Holds are short. A hold could last up to 7 business days. It could be extended by up to 15 more business days if the local protective services agency, law enforcement or the Department of Aging asks in writing, or if the institution decides an extension is appropriate.
Some reporting becomes mandatory. In three situations, a front-line employee would have to report the suspected exploitation in writing within five business days to the institution’s designated representative: the employee believes the customer has diminished cognitive capacity, the suspect is someone with access to the account or in a position of trust, or the bank has already placed a hold. The designated representative would then review the report and, if there is reasonable cause, report it to the local protective services agency (usually the county Area Agency on Aging).
Families get told, but the suspect doesn’t. When a bank places a hold, it would have to notify the older adult and the others authorized on the account within one business day, and the older adult’s authorized contacts within five business days. Anyone believed to be involved in the exploitation would not be notified.
Investigators could get records. On written request, banks would have to give protective services relevant account records within 10 business days. The records would generally cover 60 days before and after the suspected exploitation.
Protection and penalties. Institutions and employees acting in good faith would be immune from liability. A bank could face a civil penalty of $500 to $2,500 if an employee willfully fails to make a required report or notice. Willfully helping someone exploit an older adult, or retaliating against an employee who tries to comply, would be a crime.
Timing. Most of the reporting and hold provisions would take effect 180 days after the bill becomes law.

Why it matters

Elder financial exploitation is one of the fastest-growing forms of elder abuse, and the losses are often permanent. Once money is wired overseas or loaded onto gift cards or crypto, it is rarely recovered. The Pennsylvania Bankers Association, which supports the bill, cited FBI statistics placing Pennsylvania ninth in the nation for elder financial fraud.

Federal law already gives some cover. The 2018 Senior Safe Act (12 U.S.C. § 3423) protects trained bank employees who report suspected exploitation in good faith, and FINRA Rule 2165 lets brokerage firms place temporary holds on securities accounts. But federal law does not give banks a clear right to stop a suspicious transaction. SB 738 would give Pennsylvania banks and credit unions that authority under state law.

What it could mean for families, agents and estate plans

Most of the time a short hold is a good thing. A few days is often enough to break the spell of a scam. But a bill like this can also affect legitimate transactions:

Agents under a power of attorney should expect more questions. The bill specifically lets a bank refuse an agent’s instructions while it looks into suspected exploitation. Keep records of every transaction you make for the principal and be ready to explain them.
Estate and Medicaid planning transfers such as gifts to children or retitling assets can look suspicious to a teller. SB 738 addresses this. A bank could rely on an affidavit from a Pennsylvania-licensed attorney stating that a transaction is part of an estate plan to reduce taxes or qualify the older adult or a spouse for public or private benefits.
Naming a trusted contact on each account matters more than ever. Under the bill, those contacts would be among the people notified when a hold is placed.

What to do now

You don’t have to wait for the House. These steps help today:

Hang up and verify. No real bank, government agency or police officer will ask you to move money to a “safe” account, buy gift cards or pay with crypto. Call the number on the back of your card instead.
Add a trusted contact person to bank and brokerage accounts, and make sure your power of attorney is current and names someone you trust.
Report suspected exploitation of a Pennsylvanian 60 or older to the Statewide Elder Abuse Helpline at 1-800-490-8505, to local police, and to the FTC at ReportFraud.ftc.gov. Report internet scams to the FBI at IC3.gov.
Act fast if money is gone. Contact the bank right away to ask about stopping or recalling a wire or transfer, and keep every message, receipt and statement.

For more practical steps, see our earlier guide, Protecting an Older Relative From Bank Imposters and Financial Exploitation.

Ginsburg Law Group helps Pennsylvania families with powers of attorney, trusts and estate plans that protect older adults, and we help consumers when banks, collectors or scammers cause financial harm. Contact us to review your plan or your situation.

This article is for general informational purposes only and is not legal advice. SB 738 is pending legislation; it has passed the Pennsylvania Senate only and may be amended or may never become law. Consult a licensed attorney about your specific situation.