NY A08928

Money transmitters must provide a clear and prominent warning to consumers before completing wire or electronic transfer requests made in person, by telephone, or electronically.

Warning must include six specific statements about common fraud schemes, including lottery winnings scams, guaranteed credit card or loan offers, unverified internet or phone offers, and sending money to unknown recipients.

"Clearly and prominently" is defined as appearing on the same authorization form in readable type with contrasting background for written communications, and delivered in adequate volume and cadence for oral communications.

Violations are subject to civil penalties of up to $250 for the first violation and $500 for each subsequent violation.

The act takes effect 180 days after becoming law.