California’s SB 278 Trusted Contact Law Explained: How OC Families Can Protect Aging Parents From Financial Abuse (2026)

Robert Gordon

Home Care Policy Analyst · LinkedIn · May 16, 2026

9 min read

Your 78-year-old mother in Orange County receives a call. A voice claims to be from her bank. They say there’s unusual activity on her account and they need to confirm a large wire transfer. She panics and does what she’s told. By the time she realizes it’s a scam, $15,000 is gone.

This scene plays out thousands of times every year in California. Seniors lose over $2.9 billion annually to elder financial abuse—and many cases go unreported.

But starting January 1, 2026, California gave families a new weapon against financial predators: Senate Bill 278 (SB 278), the Emergency Financial Contact Program Law.

If you’re an Orange County family caring for an aging parent or if you’re a caregiver yourself, this law creates a direct line of communication between banks and a trusted person YOU designate. When a bank suspects financial abuse, they call YOUR trusted contact—not just the victim—and can delay suspicious transactions for up to 3 business days.

In this guide, we’ll break down exactly how SB 278 works, what it means for your family, and how to set up your trusted contact TODAY.

What Is SB 278? The Basics Every OC Family Needs to Know

SB 278, also called the “Emergency Financial Contact Program Law,” requires banks, credit unions, and other financial institutions to create a system where you can designate a trusted contact person.

This trusted contact is someone—typically a family member, caregiver, or attorney-in-fact—who has permission to be notified if the bank suspects your account is being used for financial abuse.

Think of it as a financial guardian angel. When red flags appear—like a sudden large wire transfer, a pattern of unusual withdrawals, or rapid account closures—the bank contacts YOUR trusted person AND delays the transaction for 3 business days. That’s enough time to verify legitimacy, spot a scam, and stop it.

The Three Core Components of SB 278

Who Does SB 278 Protect? (Spoiler: Probably Your Family)

SB 278 applies to any account holder, but California specifically designed it to protect vulnerable populations:

• Seniors over 65 in Orange County (the #1 target demographic for financial scams)
• Adults with cognitive impairment (dementia, Alzheimer’s, memory loss)
• Individuals receiving in-home care (where isolation and cognitive decline create vulnerability)
• Anyone with a conservatorship or power of attorney
• Long-term care residents (nursing homes, assisted living)

If you’re receiving AHVA home care services or your loved one is, you should absolutely set up a trusted contact. Many financial predators specifically target seniors with caregivers—the theory is that caregivers are either distracted or a potential threat themselves.

How SB 278 Actually Works: A Real-World Scenario

Let’s walk through what happens when the system works:

It’s 2 PM on a Tuesday. Ruth, 81, lives in Costa Mesa and receives in-home care from AHVA. She gets a call from someone claiming to be from her bank’s fraud department. The caller says someone used her debit card in Nevada and needs her to confirm a wire transfer of $20,000 to secure her account.

Ruth, worried and confused, is about to comply when her bank’s fraud detection system flags the transaction.

Here’s where SB 278 kicks in:

1. The bank’s system detects the wire. It doesn’t match Ruth’s normal patterns. Wire transfers over $10,000 to out-of-state recipients get flagged automatically.
2. The bank contacts Ruth’s trusted contact (her daughter Michelle). Michelle gets a call or email: “We suspect fraud on your mother Ruth’s account. A $20,000 wire transfer to Nevada has been initiated.”
3. The bank delays the transaction for 3 business days. The money doesn’t move while they investigate.
4. Michelle calls Ruth immediately. “Mom, did you authorize a $20,000 wire to Nevada?” Ruth says no. Michelle notifies the bank, and the transaction is cancelled.
5. Ruth’s account is protected. No money lost. No fraud damage.

Without SB 278, that $20,000 would have been gone in minutes. Ruth would have discovered the theft days later, and recovery would be nearly impossible.

Who Should You Name as Your Trusted Contact?

Your trusted contact should be:

• Someone you trust completely (family member, friend, attorney, or caregiver)
• At least 18 years old
• Someone with regular access to communication (phone, email)
• Someone not on your account (this prevents conflicts of interest)
• Ideally, someone not isolated or overwhelmed (if they’re too busy, they might miss the alert)

Common trusted contacts for OC families:

• Adult children or grandchildren
• A spouse or domestic partner
• A professional caregiver (like those from AHVA)
• An attorney-in-fact or power of attorney
• A trusted friend or neighbor with daily contact

Important note: You can have MORE THAN ONE trusted contact. It’s often wise to name a primary person AND a backup (in case one is unreachable).

How to Set Up Your SB 278 Trusted Contact (Today!)

Setting up a trusted contact takes about 10 minutes. Here’s exactly what to do:

Which Banks in Orange County Support SB 278?

All major California banks are required to offer SB 278 trusted contact programs by law. This includes:

• National banks: Bank of America, Wells Fargo, Chase, Citibank
• California banks: CalWest Bank, Santa Cruz County Bank, Santa Cruz Bank
• Credit unions: ALL California credit unions (including Navy Federal, USAA, local OC credit unions)
• Online banks: Ally, Charles Schwab, Fidelity (if they maintain accounts in CA)

If your bank claims they don’t offer SB 278, insist on speaking to a manager or compliance officer. By law, they must.

What SB 278 Does NOT Do (Important Limits)

SB 278 is powerful, but it’s not a complete security blanket. Here’s what it can’t do:

• Stop ALL fraud instantly. Only banks that detect suspicious activity will delay transactions. If a scam slips through detection, SB 278 can’t retroactively recover funds.
• Prevent account access. The trusted contact is notified but can’t directly access or control the account (unless they have power of attorney).
• Protect cash withdrawals. A person could withdraw large sums of cash in person, which banks may not flag as suspicious.
• Monitor accounts 24/7. Bank detection systems are good but not perfect—a sophisticated scammer could still bypass them.
• Protect against in-person theft or coercion. If someone physically steals a checkbook or forces a senior to sign documents, SB 278 doesn’t help.

SB 278 is one layer of protection, not a complete solution. Combine it with other safeguards (see the section below).

SB 278 + 8 More Ways to Protect Your OC Family From Financial Abuse

SB 278 is a game-changer, but true protection requires a multi-layered approach:

California Law Protects Banks (And You) When Handling Suspected Abuse

Here’s something crucial: Banks are legally protected when they delay or refuse a transaction if they reasonably suspect financial abuse.

This means if a bank holds up your mom’s wire transfer to investigate fraud, they cannot be sued for the delay. This legal protection ensures banks are aggressive about protecting seniors—without fear of liability.

You, as the accountholder, also benefit: You cannot be held liable if your trusted contact receives notifications and acts on them to protect your account.

Frequently Asked Questions About SB 278

A Quick Self-Assessment: Is Your Family Vulnerable Right Now?

If you answered “Yes” or “Not sure” to most of these, setting up an SB 278 trusted contact this week should be your priority. It’s free, takes 10 minutes, and could save your family thousands or tens of thousands of dollars.

What’s Next? Your Action Plan for This Week

Don’t let another day pass without protecting your family. Here’s a simple action plan: