S 2040: Requires transmitters of money to provide a warning which informs consumers of certain fraudulent activities that may occur.

  
  STATE OF NEW YORK ________________________________________________________________________ 2040 2025-2026 Regular Sessions  IN SENATE January 15, 2025 ___________ Introduced by Sens. GIANARIS, ADDABBO, HINCHEY, KRUEGER, LIU, MAY, PARK- ER, SERRANO, STAVISKY, STEWART-COUSINS -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law, in relation to requiring transmitters of money to provide a certain warning to consumers The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The banking law is amended by adding a new section 652-c to 2 read as follows: 3 § 652-c. Required warning. 1. A person engaged in the business of 4 receiving money for transmission or transmitting money by wire or elec- 5 tronic transfer which, at the request of an individual who in-person, by 6 telephone or electronic means transmits funds to another person, busi- 7 ness or entity, shall clearly and prominently warn the person requesting 8 the transmission prior to completing such transmission of funds. Such 9 warning shall include, but not be limited to, the following information: 10 (a) a title in bold, capital letters saying "Warning: do not fall 11 victim to consumer fraud."; 12 (b) questions or information that alert a consumer about the dangers 13 of sending funds for lottery winnings, credit card guarantees or loans, 14 internet or phone offers, to persons unknown to the consumer or persons 15 whose identity the consumer cannot verify and any other fraud alert; 16 (c) information about how to ask questions of the sales clerk or 17 representative; and 18 (d) information about how to stop a transfer. 19 2. For the purposes of this section, "clearly and prominently" means: 20 (a) in written communications, including print and those made through an 21 electronic medium (such as video and interactive media including, but 22 not limited to, the internet, online services, and electronic mail) the 23 warning shall appear on the same form as the form used to authorize the 24 transmission of funds, or if no written form is used, via a sign in a EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01505-02-5 
 S. 2040 2 1 location reasonably designed to provide such notice, shall be in a type 2 size sufficiently noticeable for an ordinary consumer to read and 3 comprehend the written warning and shall be in a type that contrasts 4 with the background against which the written warning appears; and (b) 5 in oral communications, the warning shall be delivered in a volume and 6 cadence sufficient for an ordinary consumer to hear and comprehend. If 7 any communication is presented solely through oral, written or visual 8 means, the warning shall be made through the same means. 9 3. The warning required by this section shall not apply to an elec- 10 tronic funds transfer in which funds are not transferred directly to 11 another person and are not available for immediate use, nor shall any 12 warning be required in an electronic funds transfer made with a gift 13 certificate as defined in section three hundred ninety-six-i of the 14 general business law. 15 4. A violation of the provisions of this section shall be punishable 16 by a civil penalty of not more than two hundred fifty dollars for the 17 first violation and five hundred dollars for each subsequent violation. 18 § 2. This act shall take effect on the one hundred eightieth day after 19 it shall have become a law.