This bill enhances the criminal penalties associated with the use and possession of payment card scanning devices, categorizing such offenses more severely. Specifically, it establishes that using a scanning device to unlawfully access or store information from a payment card is a crime of the third degree, escalating to a second-degree crime if the theft involved exceeds $50,000. Additionally, possessing a scanning device with the intent to commit fraud is classified as a fourth-degree crime for a first offense and a third-degree crime for subsequent offenses. The penalties for these crimes include significant prison time and fines, with second-degree crimes carrying a potential sentence of five to ten years and fines up to $150,000.

Moreover, 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 regulations that outline these security measures, which may include regular inspections of payment terminals, employee training, and the installation of security devices. The bill also stipulates that merchants must receive guidance on compliance and best practices to mitigate the risk of payment card scanning. Violations of these provisions can result in substantial monetary penalties and other legal repercussions.

Statutes affected:
Introduced: 2C:21-6.1