DENVER — Colorado is taking another step to protect older adults from financial fraud — scams that can drain thousands of dollars in just minutes.
House Bill 26-1110, which recently passed the state legislature, gives banks and credit unions the ability to temporarily pause transactions when they suspect a customer is being targeted. Supporters say that quick pause could be the difference between protecting someone’s life savings and watching it disappear.
It’s a reality Kenneth Milton knows all too well.
“Somebody stole one of my checks, and then they were able to wash it,” Milton said. “It was over $25,000 of my checking account.”
Milton now attends fraud prevention seminars, like one recently held at Chase Bank in Arvada.
“When you look at older adults, they're established. They have more in their financial institutions,” said Tony Cerrone, a community manager at Chase who has led hundreds of these classes to keep clients informed about the latest scams.
The new bill creates the “Asset Act,” which aims to stop fraud before it’s too late by adding an extra safeguard for older adults and people who may be more vulnerable to bad actors.
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“The Asset Act adds a tool to financial institutions’ toolkit to stop fraud, specifically among older adults and folks that may not have all the mental capacity they need to make smart financial decisions,” one of the bill's sponsors, Rep. Sean Camacho, D-Denver, said.
Before now, a similar tool was available only to financial advisors.
“So in 2017, the state of Colorado passed a statute that allowed this tool to be implemented for financial advisors," Camacho said. "It was limited specifically to that context.”
The new measure extends that authority to banks and credit unions, allowing them to hit pause if they suspect fraud.
“What we've heard in committee, and we know through statistics, is when you just give that small break between the pressure applied by someone committing fraud and that older adult, you prevent a lot more fraud,” Cerrone said.
The law also gives frontline bank employees — the people who know their customers best — legal protection to act in good faith without fear of liability if they request a transaction hold.
“We want that to happen. We want people to have that extra layer of protection,” Camacho said.
While Milton was able to recover most of his stolen funds, he says scammers are constantly coming up with new schemes.
“There's always going to be something new you're going to have to watch for,” he said.
Financial experts encourage customers to slow down, ask questions and talk to family members when something feels off.
House Bill 26-1110 now heads to the governor's desk. If it becomes law, protections will take effect next year.
Chase Bank has upcoming fraud prevention seminars, in May:
The Power of Capital
When: May 26, 11 a.m. to noon
Where: Chase, 7301 Federal Blvd., Westminster
What: "Coaching for Impact presents a financial literacy event on The Power of Capital, designed to help participants understand how capital can be used to build stability and create opportunities. The session will cover practical fundamentals like saving, borrowing, investing basics, and how to make informed decisions that support long-term goals. Attendees will leave with clear, actionable steps and resources to help put these concepts into practice."
How to Protect Yourself from Fraud & Scams
When: May 27, 11 a.m. to 12:30 p.m.
Where: Chase, 8015 Kipling St., Arvada
What: "Join us for a free, senior-focused fraud prevention workshop with Chase Bank and the Arvada Police Department. With scams and identity theft on the rise, you’ll learn how staying organized can help protect you, how to spot common scams, and simple steps to reduce your risk. We’ll also cover what to do if you or a loved one is impacted by fraud or identity theft so you can respond quickly and confidently."
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