Representatives Ted Lieu (D-CA) and Neal Dunn (R-FL) have introduced the AI Fraud Deterrence Act, a bipartisan legislation aimed at combating the rising threat of AI-assisted scams and deepfakes. The bill seeks to modernize U.S. fraud laws by increasing maximum penalties for crimes involving artificial intelligence, including fines up to $2 million and prison sentences of up to 30 years for bank fraud committed with AI assistance.
The legislation specifically targets wire fraud, mail fraud, money laundering, and impersonation of federal officials. It comes in response to high-profile incidents where hackers used AI to impersonate White House Chief of Staff Susie Wiles in May and Secretary of State Marco Rubio in July, attempting to deceive senators, governors, and foreign ministers. "AI has lowered the barrier of entry for scammers, which can have devastating effects," Lieu stated, emphasizing national security risks.
Under the proposed law, AI-aided mail and wire fraud could result in up to 20 years in prison and $1 million fines, while AI-driven bank fraud may lead to 30 years and $2 million penalties. The bill adopts the 2020 National AI Initiative Act's definition of AI and includes exemptions for satire, parody, and other expressive uses with clear disclosures.
However, experts like Mohith Agadi, co-founder of Provenance AI, highlight challenges in enforcement, noting that "proving in court that AI was used" is difficult due to inconsistent forensic tools. The bill's proponents urge investments in digital forensics and provenance systems like C2PA to ensure practical implementation.
