AI Fraud Accountability Act

The AI Fraud Accountability Act establishes criminal and civil prohibitions against using digital impersonations (AI-generated or computer-created depictions of real or imaginary individuals that appear genuine) to commit fraud, creates a working group to develop best practices for detecting such fraud, and promotes international cooperation to enforce these rules.

Sec. 2, Criminal prohibition on use of digital impersonations to commit fraud: This section amends the Communications Act of 1934 to make it a federal crime to use a digital impersonation in interstate or foreign communications to falsely pose as an identifiable or imaginary individual with intent to defraud someone of money or valuables. Exceptions apply to lawfully authorized law enforcement or intelligence activities. Penalties include fines, up to 3 years imprisonment, or both. Threats to commit such fraud for intimidation or extortion carry the same penalties. Convicted persons must forfeit any property derived from the violation or used to commit it. The offense has extraterritorial jurisdiction.

Sec. 3, Protection against digital impersonation fraud: This section prohibits the same conduct in interstate or foreign commerce, enforced by the Federal Trade Commission (FTC) as an unfair or deceptive act or practice. The FTC has full enforcement powers under the FTC Act, and violators face penalties under that Act. Law enforcement and intelligence activities are exempted.

Sec. 4, Working group on digital impersonation fraud: Within 30 days of enactment, the Secretary of Commerce, through the Director of NIST, must convene a working group with representatives from DOJ, FTC, law enforcement agencies, private sector industries (financial services, health care, retail, telecom, digital platforms), and experts in digital forensics and AI. The group will develop best practices and recommendations for detecting and preventing digital impersonation fraud. NIST must hold at least one public workshop, publish a report within one year, review and update the practices annually, and report to Congress annually. The working group terminates after 10 years.

Sec. 5, Cooperation with foreign law enforcement agencies: Within 90 days, the FTC, with the Attorney General and Secretary of State, must identify the top 10 foreign countries where violations of sections 2 or 3 originate and harm U.S. individuals. The FTC may enter agreements with those countries for law enforcement cooperation, subject to FTC Act requirements, and must report annually to Congress on such agreements and challenges. The Attorney General must review and modify international agreements every 5 years to encourage enforcement of violations originating abroad, and report to Congress on the review and recommendations.

Sec. 6, Savings clause: Nothing in the Act restricts parody, satire, journalism, or any rights protected by the First Amendment.