Relating to skimmers on electronic terminals; authorizing a civil penalty; creating criminal offenses.
If enacted, SB2371 will introduce civil penalties for violations related to the handling of skimmers, with fines reaching up to $5,000 per day for each offense. Additionally, the bill establishes specific criminal offenses, classifying certain behaviors, such as negligent or reckless disposal of skimmers, as misdemeanors or felonies depending on the severity of the actions taken. Furthermore, it mandates the cooperation of merchants and technicians in reporting and facilitating investigations to protect consumers effectively and eradicate skimming practices.
SB2371 focuses on the issue of skimmers on electronic terminals, such as ATMs and point-of-sale devices. The bill establishes a new chapter under the Business & Commerce Code specifically aimed at addressing the use of skimming devices, which are illegal tools used to capture payment card information. The legislation sets forth definitions regarding electronic terms and lays down procedures for reporting the discovery of a skimmer. It also emphasizes the responsibilities of merchants and service technicians in ensuring the security of electronic terminals against such fraudulent activities.
The sentiment around SB2371 appears to be generally supportive, especially among consumer protection advocates and financial institutions, which recognize the need for stricter measures against payment fraud. There is an acknowledgment of the increasing threat posed by skimmers and a consensus that the proposed legislation is a proactive approach to enhance consumer security. However, there may be some concerns regarding the financial implications for businesses that may need to invest in compliance measures or updates to their systems to align with the new regulations.
Notable points of contention surrounding the bill might involve the balance between enhancing security measures and the potential burden it places on businesses, particularly smaller merchants who may find compliance challenging. There could also be discussions related to the adequacy of the proposed penalties and whether they substantially deter fraudulent behaviors. Some stakeholders may argue for additional provisions that not only penalize but also promote education on skimmer detection and prevention strategies to establish a more robust defense against electronic fraud.
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