Massachusetts General Laws ch. 106 sec. 4A-201 – Security Procedure
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Section 4A–201. ”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 or cancelling 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 require the use of algorithm or other code, identifying word or number, encryption, callback procedure, or similar security device. Comparison of a signature on a payment order or communication with an authorized specimen signature of the customer is not by itself a security procedure.