Nebraska Banks’ Tools to Combat Elder Financial Abuse When Something Doesn’t Look Right Ryan McIntosh, General Counsel Nebraska Bankers Association As all Nebraska bankers know, fraud is no longer a distant threat or an occasional customer-service challenge. It is a daily and growing risk for financial institutions across the country, and Nebraska is not immune. Nebraska bankers are often the last line of defense when an older customer is pressured to wire money overseas, drain a safe deposit box, add a new joint owner, change beneficiaries or move funds under suspicious circumstances. That is why the Nebraska Bankers Association has worked with lawmakers, regulators, law enforcement, member banks and other partners to provide financial institutions with practical legal tools to help protect vulnerable adults and senior adults. The Nebraska Legislature recognized this need in 2020 with LB 909 and expanded those protections in 2026 with LB 838. Together, these laws give Nebraska financial institutions discretion, protection and flexibility when they reasonably believe financial exploitation may have occurred or is being attempted. A Legislative Response Built Around Bankers’ Real-World Experience LB 909 began as LB 853, introduced in 2020 by Sen. Matt Williams of Gothenburg. After testimony from NBA member banks and the director of the Nebraska Department of Banking and Finance, the bill was amended into LB 909, passed on July 21, 2020, and became effective that November. The law created Nebraska’s transaction-hold and notification framework for suspected financial exploitation. In 2026, Sen. Mike Jacobson of North Platte introduced LB 838 to build on that framework by authorizing financial institutions to establish an “authorized contact” program. LB 838 passed on April 10, 2026, and went into effect on July 18, 2026. The legislative findings, now contained in statute, reflect the balance bankers must strike every day, recognizing that financial institutions are uniquely positioned to detect exploitation, while also acknowledging banks’ contractual and federal and state law obligations to follow valid customer instructions faithfully and in a timely manner. Just as important, the law does not impose a duty to override valid customer instructions. It gives banks discretion to act when the facts warrant action. That distinction is important. Nebraska’s law is not a mandate that every suspicious circumstance lead to a hold, refusal or notification. It is a shield and a tool, allowing a bank to determine whether action is appropriate based on the information available at the time. What the Law Allows Banks to Do Under Neb. Rev. Stat. § 8-2903, when a financial institution or employee reasonably believes that financial exploitation of a vulnerable adult or senior adult may have occurred, may have been attempted, is occurring or is being attempted, the institution may delay or refuse a transaction. The definition of “transaction” is broad. It includes transfers or disbursements, wires, ACH transactions, money orders, cashier’s checks, checks, changes in ownership or account access, loans or extensions of credit, encumbrances on property, and changes to beneficiary designations or contract rights at death. In practical terms, the law applies to many situations bankers actually see, not just withdrawals. A transaction hold generally expires upon the earlier of 30 business days after the institution first acted, the point at which the institution is satisfied the transaction will not result in exploitation, or termination by court order. However, unless otherwise directed by a court, a financial institution may extend the hold if it reasonably believes exploitation may continue or continue to be attempted. Third-Party Notification and Authorized Contacts Nebraska law also allows banks to notify a third party reasonably associated with a vulnerable adult or senior adult. This may include a parent, spouse, adult child, sibling, family member, close associate, co-owner, authorized signer, beneficiary, trustee, conservator, guardian, attorney-in-fact, fiduciary or attorney known to represent the customer. 9 NEBRASKA BANKER
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