SB505 mandates secure authentication for money transmission services in California, effective January 1, 2028.

SB505 introduces a new chapter in the Financial Code, requiring money transmission licensees to implement secure authentication processes for user logins. This includes two-factor or multifactor authentication and reverification of user identity. The act aims to balance consumer protection with reasonable user access, allowing licensees to consider risk levels and transaction sensitivity. The implementation of these measures is intended to align with evolving security standards while ensuring strong consumer protections.

SB505 mandates secure authentication for money transmission services in California, effective January 1, 2028.

SB505 introduces a new chapter in the Financial Code, requiring money transmission licensees to implement secure authentication processes for user logins. This includes two-factor or multifactor authentication and reverification of user identity. The act aims to balance consumer protection with reasonable user access, allowing licensees to consider risk levels and transaction sensitivity. The implementation of these measures is intended to align with evolving security standards while ensuring strong consumer protections.