Gov. Henry McMaster recently signed a state bill that protects seniors and vulnerable adults from financial fraud.
Under the new law, S. 425, financial institutions are given the authority to decline, delay, or report certain transactions they deem as suspiciously exploitative for any adult over 18 that has a physical or mental condition, and seniors aged 55 and older.
“Taking advantage of vulnerable adults for financial gain happens all too often in this country,” McMaster said in an office release. “Enabling our financial institutions to take action and fight back is an important step in protecting South Carolinians from exploitation and will help to ensure their financial security.”
According to the governor’s release, the new law “allows, but does not require” financial institutions to report financial exploitation of vulnerable members of the community to the Adult Protective Services Program in the state Department of Social Services, or the Securities Division of the Office of the Attorney General.
They are also allowed but not required to put a hold on suspicious transactions for up to 30 days while possible exploitative transactions are investigated but they are immune from being held criminally, civilly, or administratively liable for declining or delaying such transactions.
“The impact of vulnerable adult and elder abuse is felt by all of South Carolina’s citizens, costing victims across the United States billions of dollars each year,” said state Department of Social Services Director Michael Leach in the office release. “We at DSS are aware of the challenges vulnerable adults face every day, and it is up to all of us to say something if we see abuse or neglect in our communities.”
South Carolina is now one of 31 states to enact similar legislation in an effort to protect vulnerable constituents.
