Maryland has expanded the protections available to older and vulnerable adults whose financial accounts may be targeted for exploitation. The Vulnerable Adult Banking Protection Act, which took effect on October 1, 2026, gives financial institutions new authority to delay or deny certain suspicious disbursements. It builds on protections discussed in my earlier article about Maryland’s SAFE Act, available here.

Financial exploitation is an increasingly serious threat as the baby boomer generation ages. The Federal Bureau of Investigation has observed a nearly 50% increase in complaints related to elder fraud and exploitation in recent years. Many cases involve fraudsters gaining direct or indirect access to an older or vulnerable adult’s financial accounts. Technology has made some forms of exploitation easier to carry out, while legal protections have not always kept pace. A recently enacted Maryland statute provides financial institutions with additional tools to protect affected account holders.

What Is the Vulnerable Adult Banking Protection Act?

Maryland’s Vulnerable Adult Banking Protection Act (or “VABPA,” codified at Md. Code Ann., Financial Institutions § 1-307) went into effect on October 1, 2026. In broad strokes, VABPA empowers “fiduciary institutions”—which includes most banks, credit unions, and savings and loan associations—to delay or deny a disbursement from the account of an eligible adult if the institution reasonably believes that the requested disbursement may result in financial exploitation. Importantly,VABPA defines “eligible adult” as a “vulnerable adult” or someone at least 65 years old, and states that the term “vulnerable adult” includes any adult who lacks the physical or mental capacity to provide for their own needs. The statute further defines “financial exploitation” to include:

• The wrongful taking or withholding of an eligible adult’s assets or property;
• Actions or omissions by a person (including a power of attorney, guardian, or conservator) to: (i) obtain control, through deception, intimidation, or undue influence, over the eligible adult’s money, assets, or property; or (ii) misappropriate assets or property of the eligible adult in order to deprive the eligible adult of the ownership, use, benefit, or possession of such assets or property.

What Should Vulnerable Adults and Their Families Do?

Historically, financial institutions have been reluctant to delay or deny disbursements—even where financial exploitation is suspected—for fear of exposure to liability. VABPA solves this problem by providing financial institutions with limited immunity if they deny or delay a transaction in good faith and while exercising reasonable care, provided that they comply with certain other requirements set forth in the statute. Family members of eligible adults who suspect financial exploitation should therefore report their concerns to the eligible adult’s financial institutions, who are now better positioned to act.

What Should Financial Institutions Do?

While VABPA does confer limited immunity upon financial institutions acting in good faith and exercising reasonable care, it also imposes other obligations on financial institutions who delay or deny suspicious transactions. Primarily, financial institutions must do the following within 4 business days of receiving the disbursement request:

• Send written notice of the reason for the delay or the denial to all parties authorized to transact business on the account (excluding any person that the institution suspects of financial exploitation); and
• Notify the adult protective services program in a local department of social services, a law enforcement agency, or a State’s Attorney of the suspected exploitation and the delay or denial or the disbursement.

In view of these requirements, as well as other obligations contained in VABPA, qualifying financial institutions should review and update their policies and procedures related to suspected financial exploitation and denied or delayed disbursements to ensure compliance.

The Bottom Line

Financial exploitation of older and vulnerable adults remains a grave and prevalent issue in Maryland. Lawmakers have signaled their intent to continue crafting laws that provide key protections to potential victims, and VABPA is a step in the right direction. Yet, the protections afforded under VABPA will be useless if financial institutions, family members, and friends are not vigilant in identifying the signs of financial exploitation (such as sudden changes in bank accounts or banking practices, unexplained large withdrawals, abrupt changes in estate planning documents, the sudden and unexplained disappearance of funds or personal possessions, unexplained credit card charges, etc.).

Family members, friends, and eligible adults should also understand that VABPA is not a “silver bullet.” While VABPA requires a financial institution that delays or denies a disbursement to report the suspected exploitation, the statute directly pertains only to individual transactions with qualifying financial institutions. Yet, financial exploitation can take many forms, and it can be perpetrated across all of an eligible adult’s financial accounts or beyond such accounts. For these reasons, if financial exploitation is suspected, the matter should be discussed with the eligible adult’s financial institutions and with a licensed attorney.

Concerned about possible exploitation? If you believe that you or someone you care about may be experiencing financial exploitation in Maryland, contact an RKW attorney to discuss the options that might be available to you under VABPA and other Maryland laws.