Internet transactions: verification: banking and financial services.

Existing law sets forth comprehensive provisions governing funds transfers, as defined, including provisions related to the issuance and acceptance of payment orders, requirements for verification, the effect of errors, the effect of acceptance of a payment order, and related provisions. This bill would require a business that provides banking or other financial services over the Internet to implement and maintain reasonable policies and procedures for authenticating and verifying the legitimacy of a consumer transaction over the Internet, as specified. The bill would authorize the imposition of a civil penalty, as specified, and a civil action for a violation of this provision, as specified. This bill would declare that it is to take effect immediately as an urgency statute.