“A bill to prevent fraud enabled by artificial intelligence, and for other purposes.”
No CRS summary available for this bill.
This section states congressional findings that (1) scammers stole over $1.4 billion through phone and text message scams from U.S. persons in 2024; (2) artificial intelligence technologies such as deepfakes and chatbots are enhancing scams, with the Federal Trade Commission committed to combating impersonation fraud; (3) scammers can generate authentic-seeming voice imitations using short audio samples and publicly available internet information; and (4) updated laws are needed to hold perpetrators accountable.
This section prohibits any person from (1) engaging in deceptive impersonation of a government entity, business, or official thereof in or affecting commerce; (2) replicating any individual's image or voice, including through artificial intelligence, with intent to defraud; or (3) providing substantial assistance to such conduct when the provider knows or reasonably should know of the violation. It authorizes the Federal Trade Commission to enforce these prohibitions in the same manner as unfair or deceptive acts or practices under the Federal Trade Commission Act. The section also revises the consumer education requirement of the Seniors Fraud Advisory Office—within the FTC's Bureau of Consumer Protection, which advises on preventing fraud targeting seniors—to require dissemination of information about scams enabled by artificial intelligence (in addition to descriptions of common fraud schemes).
This section amends the Telemarketing and Consumer Fraud and Abuse Prevention Act (15 U.S.C. 6101 et seq.) to (1) expand the definition of "telemarketing" to include text messages and video conference calls; (2) define "text message" to encompass SMS, MMS, and RCS messages transmitted via telephone numbers, short codes, email addresses, or app-to-person messaging (excluding real-time two-way voice or video communications); and (3) define "video conference call" as real-time video or audio communication between two or more individuals (excluding non-video telephone calls). It further amends that Act's rules on abusive telemarketing practices to require that any person making or transmitting a telephone call or text message using artificial intelligence (AI) to emulate a human being promptly and clearly disclose such AI use. This section also amends the Telephone Consumer Protection Act (47 U.S.C. 227), which prohibits unsolicited calls using automatic telephone dialing systems (ATDS) or artificial/prerecorded voices (previously limited primarily to voice calls to residences). It (1) expands the definition of "artificial or prerecorded voice" to include any machine-, computer-, or AI-generated speech or conduct that appears to depict an actual individual's speech or conduct; (2) incorporates the above text message definition and adds a definition of "text messaging service"; (3) extends prohibitions to initiating text messages using ATDS or artificial/prerecorded voices (removing the prior "residential" limitation); and (4) requires disclosures at the beginning of any call or text message delivered via ATDS or using AI to emulate a human being. (Thus, these changes subject AI-generated texts and calls to existing do-not-call protections and consent requirements.) Finally, it clarifies that section 230 of the Communications Act (47 U.S.C. 230), which provides immunity for interactive computer services, does not limit the Telemarketing Act or related FTC regulations.
This section directs the Federal Trade Commission (FTC), in consultation with the Attorney General and Federal Communications Commission (FCC), to (1) update its web portal as soon as practicable after enactment with searchable information on artificial intelligence (AI)-enabled scams, including law enforcement contacts; (2) establish procedures to log and share complaints on mail, television, internet, telemarketing, and robocall fraud via the Consumer Sentinel Network and to provide related fraud information; and (3) work with media and law enforcement to distribute such information to senior citizens and caregivers. This section establishes an AI Scams Advisory Group, chaired by the FTC and FCC chairs and composed of those chairs or designees, the Secretary of the Treasury, Attorney General, Director of the Consumer Financial Protection Bureau, and representatives from retail, gift cards, telecommunications, wire-transfer services, and consumer advocacy, to (1) assess educational materials and programs on preventing AI-enabled scams and (2) develop model materials, best practices, and guidance; requires the chairs to publicize and promote such materials; and directs annual reports to specified congressional committees through 5 years after enactment, after which the group terminates. This section also requires the FTC to submit to Congress, not later than 180 days after enactment and annually thereafter, reports describing AI-enabled scams (including numbers and types) and policy recommendations to prevent them, particularly voice clone impersonation. This section amends Section 227(h)(2) of the Communications Act of 1934 (47 U.S.C. 227(h)(2)) regarding annual reports to Congress on robocalls and transmission of misleading or inaccurate caller identification information.