Maryland law empowers credit unions to protect members from scams
Maryland credit unions will have a new law to help them protect members from fraud when a new state law takes effect Oct. 1. MD|DC Credit Union Association President/CEO John Bratsakis spoke to WMAR2News this week about the ongoing fight against fraud.
The “Vulnerable Adult Banking Protection Act” gives credit unions and other financial institutions the ability to temporarily pause or delay suspicious transactions involving older and vulnerable adults when potential fraud is suspected.
“That's what we're all trying to do is try to find ways to protect our members,” Bratsakis said, adding that the law is about slowing things down when something doesn't look right.
He pointed to a specific example of how empowering employees to question suspicious transactions can protect consumers.
"There was a credit union locally that somebody requested a wire. And they had all the correct information to do the wire. It involved a mortgage transaction, but they wanted it to go to an individual versus the title company," Bratsakis said. "They paused it and then as they started to go through the process, they were able to stop it, and it was $80,000 that it saved someone."
During the interview, Bratsakis also emphasized the role of “trusted contacts” in the legislation, which allows institutions to notify a designated individual if suspicious activity is detected—without granting them access to the account.
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