Choosing a Trusted Contact for Banks and Financial Accounts

A trusted contact is someone your bank, credit union, brokerage, or financial professional may contact if there are concerns about possible exploitation, confusion, unusual account activity, or difficulty reaching you. It is a simple protection tool that can help financial institutions respond faster when something appears wrong.

Adding a trusted contact does not usually give that person permission to access your money, make withdrawals, trade investments, change beneficiaries, or make decisions for you. It is not the same as giving someone power of attorney, adding them as a joint account owner, or naming them as a beneficiary.

Why a trusted contact helps

Financial institutions may notice warning signs before family members do. These can include unusual withdrawals, sudden wire transfers, unpaid bills, suspicious investment activity, repeated confusion, or signs that someone may be pressuring the account holder. A trusted contact gives the institution someone responsible to reach if they cannot safely resolve the concern directly with the account holder.

A trusted contact may help when there are concerns about:

• Possible scams or fraud.
• Unusual withdrawals, transfers, or investment activity.
• Difficulty reaching the account holder.
• Confusion about accounts, bills, or financial decisions.
• Suspected elder financial exploitation.
• A medical emergency or sudden loss of capacity.
• Questions about who has legal authority to help.

The Consumer Financial Protection Bureau explains trusted contacts in its guide to choosing a trusted contact person. The CFPB also provides broader guidance on planning for diminished capacity and illness.

What a trusted contact can usually do

The exact rules depend on the financial institution, but a trusted contact may be used to help confirm important information or respond to a concern. For example, the institution may contact them to:

• Confirm whether they have the correct phone number, mailing address, or email for the account holder.
• Help reach the account holder during an emergency.
• Ask whether the account holder may be hospitalized, traveling, relocated, or temporarily unavailable.
• Identify a legal representative, such as a power of attorney, guardian, trustee, executor, or attorney.
• Share concerns about possible financial exploitation, depending on the institution’s policy and applicable law.
• Encourage the account holder to contact the institution directly.

What a trusted contact usually cannot do

A trusted contact should not be confused with someone who has control over the account. Unless they have separate legal authority, a trusted contact usually cannot:

• Withdraw money.
• Transfer funds.
• Use checks, debit cards, or online banking.
• Make investment trades.
• Change beneficiaries.
• Close accounts.
• Sign legal documents for the account holder.
• Act as power of attorney, trustee, guardian, or executor.

Investor.gov, a resource from the U.S. Securities and Exchange Commission, explains that a trusted contact is similar to an emergency contact for brokerage accounts and does not automatically receive authority to act on the account. You can read more here: Why You Should Consider Adding a Trusted Contact to Your Account.

Trusted contact vs. power of attorney

A trusted contact is mainly a communication safeguard. A power of attorney is a legal document that can give someone authority to manage money, pay bills, handle accounts, or make financial decisions.

Because the roles are different, a trusted contact should not replace a full legal plan. Families should also consider whether they need a durable financial power of attorney, health care directive, will, trust, beneficiary updates, and written instructions for important accounts.

Trusted contact vs. beneficiary

A beneficiary is the person or organization named to receive assets after death, depending on the type of account. A trusted contact does not receive money or property simply because they are listed as a trusted contact.

The same person can be both a trusted contact and a beneficiary, but those roles should be reviewed separately. Families should understand exactly what authority each role does and does not provide.

Who to choose as a trusted contact

Choose someone reliable, reachable, responsible, and calm. The person does not need to be a financial expert, but they should be able to communicate clearly and act in your best interest.

A good trusted contact is usually someone who:

• Responds reliably to calls, texts, or emails.
• Knows how to reach you or close family members.
• Will respect your privacy.
• Will not pressure you into financial decisions.
• Can speak calmly with banks, brokerages, relatives, caregivers, or professionals.
• Understands your basic family or caregiving situation.
• Does not have a major conflict of interest.

Possible trusted contacts may include an adult child, sibling, close friend, attorney, accountant, financial adviser, or another responsible adult. In situations involving family conflict, it may be wise to choose someone neutral and dependable.

Consider naming more than one trusted contact

Some institutions may allow more than one trusted contact. This can be helpful if the first person is unavailable, lives far away, becomes ill, or is involved in the concern. A backup contact gives the institution another person to reach if quick action is needed.

Before listing someone, ask the institution:

• How many trusted contacts can be added?
• When can the institution contact them?
• What information may be shared?
• Can the account holder limit what is shared?
• How can the trusted contact be changed or removed?
• What happens if the trusted contact is suspected of exploitation?

How to add a trusted contact

The process depends on the bank, credit union, brokerage, or investment firm. Many financial institutions allow trusted contacts to be added during account opening, through an online account profile, or by completing a form.

Steps usually include:

1. Contact your financial institution directly.
2. Ask whether they allow trusted contacts or emergency financial contacts.
3. Request the trusted contact form or online setup instructions.
4. Ask what circumstances allow them to contact that person.
5. Ask what information may be shared.
6. Tell the trusted contact that you are listing them.
7. Keep a copy of the completed form with important records.

Be cautious with emails or text messages asking you to update trusted contact information. Instead of clicking a link, go directly to the institution’s official website, use its official app, call the number on your statement, or contact your financial professional directly.

What to tell your trusted contact

A trusted contact should understand the role before they are listed. They do not need full access to private financial records, but they should know enough to help if there is a concern.

Tell them:

• Which institution may contact them.
• Why you chose them.
• That they do not have authority to spend or move money unless separately authorized.
• Who else should be contacted in an emergency.
• Where important legal or financial documents are stored.
• Who your attorney, accountant, financial adviser, caregiver, or emergency contact may be.
• What warning signs should concern them.

Avoid casually sharing passwords, PINs, account numbers, or full financial records unless there is a clear legal or practical reason to do so.

Warning signs of financial exploitation

A trusted contact can be especially valuable when there are warning signs that someone may be at risk. Families and caregivers should watch for:

• Large or repeated withdrawals that are unusual.
• New people pressuring the person about money.
• Sudden changes to accounts, beneficiaries, wills, or powers of attorney.
• Unpaid bills even though funds should be available.
• Duplicate payments, missed payments, or confusion about bills.
• Gift card purchases, wire transfers, cryptocurrency payments, or other scam-related activity.
• A caregiver, relative, contractor, or new friend controlling access to the person.
• Fear, secrecy, or anxiety when discussing money.
• Isolation from long-standing friends, relatives, or advisers.

The FDIC and CFPB provide additional education through Money Smart for Older Adults, which covers common financial scams, identity theft, caregiver concerns, and planning for unexpected life events.

When to review or update a trusted contact

Trusted contacts should be reviewed regularly. A person who was a good choice several years ago may no longer be the best choice today.

Review trusted contacts after:

• Divorce, separation, or serious family conflict.
• Death or illness of the trusted contact.
• Moving to a new city, state, or country.
• Changing banks, brokerages, attorneys, accountants, or advisers.
• A new diagnosis that may affect memory, judgment, or financial decision-making.
• A change in caregivers.
• Any concern that the trusted contact may not act in your best interest.

This is also a good time to review beneficiaries, powers of attorney, emergency contacts, insurance policies, estate documents, account access instructions, and Social Security information.

Trusted contacts and Social Security benefits

Social Security has a separate option called Advance Designation. This allows someone to name up to three people who could serve as a representative payee if Social Security later determines they need help managing benefits. This is not the same as a trusted contact at a bank or brokerage, but it can be part of a broader financial protection plan.

You can learn more from the Social Security Administration here: Advance Designation of Representative Payee.

What to do if exploitation is suspected

If you believe someone is being financially exploited, act quickly. Contact the financial institution and explain the concern. The institution may be able to flag the account, investigate suspicious activity, delay certain transactions when allowed, or provide next steps.

You may also need to contact Adult Protective Services, local law enforcement, the state securities regulator, or another agency depending on the situation. The CFPB provides a helpful guide here: Reporting elder financial abuse.

For brokerage or investment concerns, FINRA operates the Securities Helpline for Seniors. You can learn more here: FINRA Securities Helpline for Seniors.

Bottom line

A trusted contact is a simple but valuable safeguard. It gives financial institutions someone responsible to contact if there are concerns about fraud, exploitation, confusion, or an emergency. It does not replace legal planning, but it can strengthen a broader plan that includes powers of attorney, updated beneficiaries, organized records, fraud prevention, and clear family communication.

Review trusted contacts regularly and keep them current. The right contact can help prevent confusion, reduce delays, and stop a small concern from becoming a major financial loss.