Bill > S05500

This bill, known as the "Financial App Security Act," requires peer-to-peer mobile payment services (apps that allow users to send and receive money through mobile devices) to implement several security measures. Specifically, these services must require users to create a personal identification code of at least four numeric characters that must be used for certain high-risk transactions, such as payments exceeding a user-defined monetary limit, transactions to newly created accounts, or multiple rapid transactions. Users must also be able to set a threshold amount for transfers that will trigger additional identity authentication. The bill outlines multiple scenarios requiring personal identification number use, including sign-ins to new devices, after password resets, and after multiple quick transactions. If a user fails to input their personal identification number correctly five times within 24 hours, their account will be temporarily locked. The bill also empowers users to cancel potentially fraudulent transactions and prohibits peer-to-peer mobile services that do not comply with these requirements from operating in New York State. Additionally, the bill amends the financial services law to authorize the financial frauds and consumer protection unit to enforce these new provisions, with the law set to take effect 180 days after becoming law.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/S5500