AI Fraud Accountability Act of 2026

The AI Fraud Accountability Act of 2026 creates criminal and civil penalties for using digital impersonations (AI-generated or computer-manipulated images or audio that appear real) to commit fraud, establishes a working group at the National Institute of Standards and Technology to develop detection best practices, and promotes international law enforcement cooperation.

Sec. 2, Criminal prohibition on use of digital impersonations to commit fraud: It amends the Communications Act to make it a federal crime, punishable by up to 3 years in prison and fines, to use a digital impersonation in interstate communications to falsely pose as a real or imaginary individual with intent to defraud someone of money or property. Threats to commit such impersonation for intimidation or extortion carry the same penalty. Convicted persons must forfeit any property derived from or used in the violation. Law enforcement and intelligence activities are exempted, and the offense has extraterritorial jurisdiction.

Sec. 3, Protection against digital impersonation fraud: It creates a parallel civil prohibition, enforced by the Federal Trade Commission (FTC), against using digital impersonations in interstate commerce to defraud. Violations are treated as unfair or deceptive acts under FTC rules, and the FTC has full enforcement powers. Law enforcement and intelligence activities are exempted.

Sec. 4, Working group on digital impersonation fraud: Within 30 days, the Secretary of Commerce, through the NIST Director, must convene a working group including federal, state, and local law enforcement, private sector industries (financial services, health care, retail, telecom, digital platforms), and AI/digital forensics experts. The group will develop best practices for detecting and tracing digital impersonations used in 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 sunsets 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 list the top 10 foreign countries where violations of sections 2 or 3 originate and harm U.S. persons. The FTC may enter agreements with those countries for enforcement cooperation, subject to existing FTC Act requirements, and must report annually to Congress on agreements, negotiations, coordination, and challenges. The Attorney General must review and modify international agreements every 5 years to encourage enforcement of section 2 violations originating abroad, and report to Congress with analysis and recommendations.

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