NY S02040

Requires money transmitters to provide a clear and prominent fraud warning to consumers before completing any wire or electronic fund transfer requested in-person, by phone, or electronically

Warning must include a bold title stating "WARNING: DO NOT FALL VICTIM TO CONSUMER FRAUD" and alert consumers about dangers of sending funds for lottery winnings, credit card guarantees, loans, internet/phone offers, or to unknown or unverified persons

Warning must also provide information on how to ask questions of the sales clerk/representative and how to stop a transfer

Exempts electronic fund transfers where funds are not transferred directly to another person and are not immediately available, as well as transfers made with gift certificates

Establishes civil penalties of up to $250 for a first violation and $500 for each subsequent violation, with the law taking effect 180 days after enactment