Preventing Deep Fake Scams Act
- Sponsor
- Rep. Pettersen, Brittany [D-CO-7]
- Committees
- Financial Services Committee (primary)
- Last action
- Feb 27, 2025
Bottom line
The bill creates an interagency task force to study and report on the risks and benefits of artificial intelligence, particularly deep fakes, in the financial services sector to enhance consumer protection against fraud.
What it actually does
This bill establishes a temporary Task Force on Artificial Intelligence in the Financial Services Sector, chaired by the Secretary of the Treasury. The Task Force is mandated to produce a comprehensive report to Congress within one year, detailing how financial institutions protect consumers from AI-driven fraud, defining key AI terms, outlining potential risks from malicious AI use, listing best practices for institutions, and recommending legislative and regulatory actions to protect consumers from data theft, identity theft, and fraud.
Proponents argue
Supporters argue that artificial intelligence presents both significant opportunities and unique threats, especially 'deep fakes,' to financial consumers. Establishing a dedicated task force with input from key financial regulators and industry experts is a proactive and necessary step to understand these evolving risks and develop robust protections and regulatory frameworks before widespread harm occurs, ensuring a coordinated federal response to a rapidly advancing technological challenge.
Opponents contend
Critics might contend that creating another task force is a bureaucratic delay tactic that may not produce timely or actionable recommendations given the rapid pace of AI development. They might argue that existing regulatory bodies already possess the authority and expertise to address these issues, or that a new task force could lead to overregulation that stifles innovation in the financial technology sector.
The bill is very short and can be read quickly, allowing ample time for a thorough understanding of its provisions.
Section 1
Short Title
This section formally names the Act as the 'Preventing Deep Fake Scams Act.' This title clearly communicates the bill's primary focus on addressing the threat of deep fake technology, particularly in the context of financial scams, making its purpose immediately clear to the public and policymakers.
Supporters argue
Supporters argue that a clear and descriptive short title helps the public and policymakers quickly understand the bill's purpose and urgency, emphasizing the critical threat of deep fake scams in the financial sector.
Critics contend
No specific opposition is typically raised against short titles, as they are primarily for identification and branding purposes and do not contain substantive policy.
Tradeoffs
None significant for a short title, as its function is purely descriptive.
Section 2
Congressional Findings on AI in Financial Services
This section outlines Congress's foundational understanding of artificial intelligence's role in the financial services sector. It acknowledges AI's potential benefits for banks, credit unions, and consumers, while simultaneously highlighting the unique and significant threats posed by 'deep fakes' and voice/audio manipulation, which could be exploited by malicious actors for data theft, identity theft, or fraud against customer accounts.
Section 3(a)-(b)
Establishment and Composition of the AI in Financial Services Task Force
This provision formally establishes the 'Task Force on Artificial Intelligence in the Financial Services Sector.' It specifies that the Task Force will comprise high-ranking officials from key federal financial regulatory bodies, including the Secretary of the Treasury (who will serve as Chair), the Comptroller of the Currency, the Chairman of the Board of Governors of the Federal Reserve System, the Chairperson of the Federal Deposit Insurance Corporation, the Director of the Bureau of Consumer Financial Protection, the Chairman of the National Credit Union Administration, and the Director of the Financial Crimes Enforcement Network.
Section 3(c)
Mandate for a Comprehensive Report on AI in Financial Services
This provision requires the Task Force to issue a detailed report to Congress within one year of the bill's enactment. The report must include: descriptions of how banks and credit unions proactively protect against AI fraud, standard definitions for various AI terms (e.g., 'generative AI,' 'deep fakes'), potential risks from bad actors using AI for fraud, best practices for financial institutions to protect customers, and legislative and regulatory recommendations to protect consumers from data theft, identity theft, and fraud. The Task Force is also explicitly required to solicit public feedback and consult with industry and AI experts during the report's development.