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HB 332

Consumer Protection – Electronic Funds Transfers – Regulations (Elder Fraud Prevention Act of 2025)

2025 Regular Session Introduced by Mike Griffith and 1 co-sponsor

Maryland bill adds electronic transfer protections and fraud prevention safeguards targeting elder abuse, now passed second reading with amendments pending finance review.

Referred Finance
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WeVote Research Nonpartisan
Bill Summary · HB 332

Legislative bill overview

HB 332 strengthens consumer protections for electronic funds transfers with specific provisions targeting elder fraud. The bill modifies existing regulations on electronic payment systems to add safeguards, verification requirements, and liability frameworks intended to reduce fraudulent transactions affecting seniors and other vulnerable populations.

Why is this important

Elder fraud through electronic transfers costs victims billions annually, with seniors disproportionately affected due to cognitive vulnerability and unfamiliarity with digital banking. This legislation addresses a documented gap in current consumer protections by establishing clearer responsibilities and procedural defenses for financial institutions handling high-risk transactions.

Potential points of contention

  • Compliance costs: Financial institutions may argue that new verification requirements and monitoring systems impose significant operational expenses that could be passed to consumers through higher fees
  • Transaction friction: Enhanced security measures could slow legitimate transactions and inconvenience customers, particularly elderly users navigating complex verification processes
  • Liability allocation: Disputes over whether banks or consumers bear financial responsibility for fraudulent transfers under the amended framework, potentially limiting institutional liability in ways consumer advocates oppose
  • Definition scope: Unclear boundaries on what constitutes "elder fraud" versus general consumer fraud may create enforcement inconsistencies or unintended regulatory gaps

Compiled from official sources — confirm details with the bill’s official record.

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