Requires that businesses that provide consumers with online accounts to access services permit consumers who have been victims of identity theft to recover such accounts using proper identification if the business has a physical presence in this state.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7048A
SPONSOR: Shrestha TITLE OF BILL:
An act to amend the general business law, in relation to recovery of
online accounts
PURPOSE OR GENERAL IDEA OF BILL:
This bill would require companies that use online accounts and have
retail outlets in the State to provide an opportunity to a consumer to
prove their identity in person using a physical proof of identificatioh
if they are unable to access their online account due to a theft of
their identity.
SUMMARY OF SPECIFIC PROVISIONS:
Amends the general business law to add a new section 394-f - allows a
consumer who is unable to access their online account due to a theft of
their identity to recover their online account by providing a government
issued photo proof of identity at a brick and mortar location within the
state.
JUSTIFICATION:
Being able to prove identity in person is particularly useful in situ-
ations involving identity theft, robbery, or domestic violence when a
device is physically or virtually stolen and every password is compro-
mised, resulting in the inability to access the account associated with
the device-maker.
This bill will allow people who experience identity theft to provide
their identity in person using photo IDs and recover their online
accounts for companies that have retail stores in the State.
Currently, if you lose access to your device (cell. phone, laptop,
tablet, etc.) and someone is able to-get the password to that device,
they may be able to change your master password and take over your iden-
tity. These companies primarily verify identity through their own
devices, so without your device, there is no way for you to regain
access to your account.
Furthermore, since in most cases. the physical device is what is used
for multi-factor authentication as well/or the device is already marked
as safe, if someone has your physical device they will likely have
complete control of your account and there is no way to prove your iden-
tity without it
Even though some companies have retail stores in the State, they do not
accept physical verification of your identity.
PRIOR LEGISLATIVE HISTORY:
2023(A7048)- Referred to Consumer Affairs and Protection Committee
2022(S9241)- Referred to Senate Committee on Internet and Technology
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
7048--A
2023-2024 Regular Sessions
IN ASSEMBLY
May 10, 2023
___________
Introduced by M. of A. SHRESTHA, FORREST, MAMDANI -- read once and
referred to the Committee on Consumer Affairs and Protection --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the general business law, in relation to recovery of
online accounts
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general business law is amended by adding a new section
2 394-i to read as follows:
3 § 394-i. Recovery of online accounts. A person or business that
4 provides a consumer an online account to access services shall, if a
5 consumer cannot access their online account due to a theft of their
6 identity as provided in section 190.78, 190.79, 190.80 or 190.80-a of
7 the penal law or unlawful possession of their personal identification as
8 provided in section 190.81, 190.82 or 190.83 of the penal law has
9 occurred, upon request by such consumer, provide an opportunity to prove
10 their identity in person using a physical proof of identification in the
11 form of one of the following: (1) a valid passport issued by the United
12 States government or another country; or (2) a valid driver's license or
13 non-driver's identification card issued by this or another state, the
14 federal government, any United States territory, commonwealth or
15 possession, or the District of Columbia, bearing the consumer's name,
16 photograph and date of birth, to recover their online account and
17 restore access thereto, provided that the person or business providing
18 such online account has a physical presence and at least one retail
19 location within this state.
20 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09006-04-3
