This bill amends existing law to enhance criminal penalties associated with the use and possession of payment card scanning devices, which are electronic devices used to illegally access and store information from payment cards. The bill establishes that using a scanning device with the intent to defraud is unlawful and constitutes a crime of the third degree, escalating to a crime of the second degree if the offense results in a theft of at least $50,000. Additionally, possessing a scanning device is classified as a crime of the fourth degree for a first offense and a crime of the third degree for subsequent offenses. The penalties for these crimes include significant prison time and fines, with a crime of the second degree carrying a potential sentence of five to ten years and fines up to $150,000.

Furthermore, the bill mandates that merchants who accept payment cards implement reasonable security measures to prevent the use of scanning devices at payment terminals. The Director of the Division of Consumer Affairs is tasked with creating rules and regulations to enforce these measures, which may include regular inspections of payment terminals, employee training, and the installation of security devices. Merchants who fail to comply with these regulations may face monetary penalties, cease and desist orders, and other legal repercussions. Overall, the bill aims to strengthen consumer protection against payment card fraud and enhance the accountability of merchants in safeguarding payment information.

Statutes affected:
Introduced: 2C:21-6.1