HRS §490:4A-201
What counts as a security procedure for payment orders
A security procedure is a method you and your bank agree on to check that a payment order is really from you and to catch mistakes. It can use codes, passwords, fingerprints, encryption, or similar tools. Just comparing a signature or checking a known email, IP address, or phone number is not enough by itself.
The statute, as written — Security procedure. "Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of (i) verifying that a payment order or communication amending o
r canceling a payment order is that of the customer, or (ii) detecting error in the transmission or the content of the payment order or communication. A security procedure may impose an obligation on the receiving bank or the customer and require the use of algorithms or other codes, identifying words, numbers, symbols, sounds, biometrics, encryption, callback procedures, or similar security devices. Comparison of a signature on a payment order or communication with an authorized specimen signature of the customer or requiring a payment order to be sent from a known email address, internet protocol address, or telephone number shall not be, by itself, a security procedure.
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