NY A09728

Money transmitters must provide a clear and prominent warning to consumers before completing wire or electronic fund transfers initiated in person, by telephone, or electronically.

The required warning must include a bold capital title stating "Warning: do not fall victim to consumer fraud" and information about common fraud schemes including lottery winnings, credit card guarantees, loans, and internet or phone offers.

The warning must explain how to ask questions of the sales clerk or representative and how to stop a transfer.

For written communications, the warning must appear on the same form as the transmission authorization form in readable type with contrasting background; for oral communications, it must be delivered in audible volume and cadence.

Violations are subject to civil penalties of up to $250 for the first violation and $500 for each subsequent violation, with the act taking effect 180 days after enactment.

Electronic transfers where funds are not transferred directly to another person or not available for immediate use, and transfers made with gift certificates, are exempt from the warning requirement.