Enacts the private automated teller machine safety act

13 Co-sponsors

• Eric Adams
• Ruben Diaz
• Thomas K. Duane
• Jeffrey D. Klein
• Liz Krueger
• Velmanette Montgomery
• George Onorato
• Kevin S. Parker
• John L. Sampson
• Diane J. Savino
• José M. Serrano
• Toby Ann Stavisky
• Antoine M. Thompson

Title of bill

An act to amend the general business law and the banking law, in relation to enacting the private automated teller machine safety act

Purpose

To provide measures to combat identity theft and protect citizens' personal information at those automated teller machines that are not currently regulated by federal or state law.

Summary of provisions

This bill will amend the banking law by adding a new Article II-aaa and 399-yy to the General Business Law. The provisions of this article shall apply to any unenclosed automated teller machines located in any building, structure, or space whose primary purpose or function is unrelated to banking activities, including but not limited to supermarkets, restaurants, bars, convenience stores, airports, school buildings, and public buildings, where such automated teller machine is available for use only during the regular hours of operation of the building, structure, or space in which such machine is located. It will require that every automated teller machine be registered with the state superintendent of banks and no person or entity shall permit an unenclosed automated teller machine to be located on his or her premises without having obtained proof that such machine has been registered in accordance with the provisions of this article.

This article provides safety rules which must be complied, with in order to maintain an automated teller machine, including adequate lighting, which permits a person using an automated teller machine to readily and easily see all other persons in the immediate vicinity of such machines; and a reflective mirror or mirrors, either affixed to or standing independently of each automated teller machine, placed in such a manner as to permit a person using such machine to see behind them as they conduct their transactions.

Justification

Identity theft is recognized as one of the fastest growing crimes in America. The Federal Trade Commission has reported that between 1998 and 2003, 27.3 million Americans became victims of identity theft, which is often associated with other serious crimes including mail fraud, narcotics, organized crime, money laundering, weapons trafficking, computer crimes, and terrorism.

The use of automated teller machines enable consumers to access funds conveniently without having to go to a bank, but it also provides an opportunity for identity thieves. Indeed, people who use the unenclosed automated teller machines found in many buildings such as supermarkets and convenience stores, whose functions are unrelated to banking activities, are particularly vulnerable because such machines are not regulated by federal or state law. These machines can be the setting for unscrupulous machine operators or third parties to obtain the personal bank information of persons conducting financial transactions. While automated teller machines located at banking institutions provide certain safety enhancements, such as rear view mirrors or security cameras, private automated teller machines are currently not legally required to do so.

Moreover, because such machines are not, at present, licensed or otherwise registered in New York state, their operators are often untraceable, making it difficult for law enforcement trying to solve identity theft crimes involving automated teller machines fraud.

Legislative history

2007-08: Referred to Consumer Protection 2005-06: Referred to Consumer Protection

Fiscal implications

To be determined.

Effective date

180 days after it shall have become law.