JOINT RELEASE: Laws Go Into Effect to Strengthen Victim Protections, Protect Older Coloradans from Being Scammed

DENVER, CO – On August 12, 2026, two laws to protect vulnerable Coloradans will go into effect. HB26-1017 prevents insurance companies from receiving victim restitution payments and HB26-1110 helps prevent older and vulnerable Coloradans from being scammed out of their hard-earned money.

“We’re prioritizing people in Colorado law by removing insurance companies from the definition of victim in criminal restitution payments, said Rep. Cecelia Espenoza, D-Denver, sponsor of HB26-1017. “This law is now going into effect to clarify that unless an insurer is a direct victim, the method of seeking financial recovery is in civil courts.”

“Restitution should be reserved for victims of crime so they can get their life back on track – not to further pad the pockets of insurance companies,” said Sen. Mike Weissman, D-Aurora, sponsor of HB26-1017. “Insurance companies that have paid out claims following a crime are not victims, they are financial institutions designed to balance risk and loss. This law creates clarity and consistency for restitution decisions going forward.”“Restitution often becomes an unpayable debt that traps families in cycles of poverty and makes successful reentry harder,” said Rep. Yara Zokaie, D-Fort Collins, sponsor of HB26-1017. “Insurance companies are sophisticated financial institutions that are structurally designed to absorb risk and loss, and granting them restitution serves no rehabilitative purpose. Our law makes insurance companies ineligible to receive restitution in criminal contexts.”

Previously, Colorado statutes allowed insurers of a victim of a crime to receive restitution payments in criminal cases. HB26-1017 prohibits insurance companies from receiving these restitution payments by removing them from the definition of “victim”. Insurers are still able to recover losses through the civil court system.

Last year, the Colorado Court of Appeals ruled that a defendant in a drunk driving car accident incident was not liable for paying a car insurance company for damages to the victim’s car, however multiple judges have questioned whether lawmakers intended to allow insurance companies to seek restitution payments when they passed a 2003 law to clarify when it is appropriate for an insurance company to pursue crime victim restitution or a civil lawsuit. HB26-1017 clarifies in Colorado statute that insurers could not receive criminal restitution payments.

HB26-1110, the Adults’ Security and Safeguards from Exploitations in Transactions Act (ASSET Act), helps prevent older Coloradans and other vulnerable people from being defrauded by scammers.

“Rapidly changing technology has increased elder fraud by 46 percent, which has had devastating consequences on older Coloradans who have spent their whole lives building up their savings,” said Rep. Sean Camacho, D-Denver, sponsor of HB26-1110. “Banks, credit unions and other financial institutions are well-positioned to notice when a withdrawal or transfer looks suspicious, allowing them to step in when they think their client is being scammed. With our law going into effect, we are fighting back against financial exploitation, protecting Coloradans from being scammed out of their hard-earned money.”

“Older Coloradans deserve to live with financial security – but years of hard work and saving can be ruined in an instant by a scammer,” said Sen. Jessie Danielson, D-Lakewood, sponsor of HB26-1110. “This law will allow bankers and credit unions to stop fraudulent transactions before they go through.  It’s about putting safeguards in place to prevent scams and keep Coloradans’ hard-earned money in their bank accounts.”

“Scams are more sophisticated than they have ever been before. Scammers specifically target seniors, who often live on a fixed income, costing them nearly $75 million in 2024 alone,” said Rep. Jamie Jackson, D-Aurora, sponsor of HB26-1110. “We believe that taking the extra time to examine suspicious banking activity could be the difference that protects Coloradans' money. This law will not only protect vulnerable Coloradans from fraud, but it will also help prevent fraud by improving education around scams.”

Beginning August 12, 2026, the law requires bank and credit union professionals to notify authorities and pause transactions for additional review if they have reason to believe that their client is the victim of financial exploitation. Also sponsored by Sen. Marc Catlin, R-Montrose, the law offers legal protection for these professionals if their action, or failure to act, was in good faith.

In 2024, Coloradans aged 60 years old and older reported losing over $74 million to scams. They were also the age group that experienced the most scams. With 3,125 Coloradans experiencing fraud, the average amount lost per scam was almost $24,000 per person.

In 2025, Colorado Democrats passed a law, also sponsored by Rep. Jackson, that protects Coloradans from scams involving cryptocurrency kiosks, which target the elderly and other vulnerable populations. The law established a transaction limit of $2,000 per day for new customers and $10,500 for existing customers to help limit the amount of money that scammers can steal.