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SF 4652

Trusted contact program established to mitigate financial exploitation and fraud

2025-2026 Regular Session Introduced by Zach Duckworth

Establishes a voluntary trusted contact program allowing financial providers to reach designated individuals to help prevent fraud or exploitation, with protections for all parties

Rule 45; subst. General Orders HF4502, SF indefinitely postponed
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Bill Summary · SF 4652

Summary of SF 4652 (2025-2026) – Trusted Contact Program to Mitigate Financial Exploitation and Fraud

Purpose and Intent

  • Establish a trusted contact program for financial services customers to help mitigate financial exploitation and fraudulent activity targeting customers.
  • Provide a framework for financial services providers to contact designated trusted individuals when certain conditions arise, while clarifying reporting and liability protections.

Key Provisions

1) Definition

  • Trusted contact: An adult (18+) designated by a financial services customer who may be contacted by the provider in emergencies or if fraud/exploitation or account issues are suspected.

2) Reporting Suspected Fraud or Exploitation

  • Financial services providers may report suspected fraudulent activity or exploitation targeting a customer to appropriate law enforcement or protective agencies (federal, state, county, or municipal), despite other laws to the contrary.

3) Creation and Operation of the Trusted Contact Program

  • Providers may, but are not required to, offer a trusted contact program.
  • A customer can designate one or more trusted contacts for the provider to contact in specific situations:
    • The customer is unresponsive to communications.
    • An urgent matter or emergency arises and the provider cannot locate the customer.
    • The provider suspects fraudulent activity or financial exploitation targeting the customer.
    • The account is dormant and verification of status/location is needed.
  • Providers may establish procedures, requirements, and forms necessary to implement the program.

4) Termination and Withdrawal

  • A customer may terminate a trusted contact’s appointment at any time.
  • A trusted contact may withdraw from their role at any time.
  • The provider may require documentation or verification to effectuate termination/withdrawal.

5) Account Security

  • Providers may offer additional account security features, including:
    • Setting transaction limits.
    • Allowing limited access for one or more trusted contacts to view account activity.

6) Liability Protections

  • Providers are not liable for:
    • A trusted contact’s actions, provided the provider acts in good faith and with reasonable care.
    • Declining to interact with a trusted contact if the trusted contact is not acting in the customer’s best interests.
    • Actions taken to report suspected fraud or exploitation.
    • Implementing or not implementing, or actions/omissions related to providing or administering the trusted contact program.
  • A trusted contact who acts in good faith and with reasonable care is immune from liability.

Who or What Is Affected

  • Financial services providers subject to Minnesota statutes (e.g., banks, credit unions, brokerage services, and other financial institutions offering services in Minnesota).
  • Customers of financial services providers who may designate trusted contacts.
  • Trusted contacts themselves, who participate in communications and potential monitoring/firm actions to protect customers.
  • Public protective agencies (law enforcement and protective services) to whom suspected fraud or exploitation may be reported.

Procedural and Timeline Aspects

  • The bill creates a framework without imposing mandatory establishment of trusted contact programs; providers may implement at their discretion.
  • Once a trusted contact is designated, the provider must follow the defined triggers for contact (emergency, unresponsiveness, suspected exploitation, or dormant accounts).
  • Termination/withdrawal by customers or trusted contacts is allowed at any time, with potential verification documentation required.
  • The section explicitly permits providers to set procedures, forms, and requirements needed to operate the program.
  • The bill includes liability limitations to encourage participation and reduce fear of legal exposure for providers and trusted contacts.

Effective Date

  • The bill text does not specify an effective date in the excerpt provided. If enacted, the typical effective date would be specified in the final act or enactment clause, or it would take effect upon passage unless phased dates are included.

If you’d like, I can add a brief comparison to existing Minnesota law or outline potential implementation steps for a provider considering instituting a trusted contact program.

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

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