BILL NUMBER: S698 REVISED 01/14/09
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
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.
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.