Preventing Deep Fake Scams Act
- Bill Number
- H.R. 1734
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-02-27: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-04-14T08:05:37Z
AI-Generated Summary
Purpose
The Preventing Deep Fake Scams Act aims to address the growing use of artificial intelligence (AI) in the financial services sector, particularly its potential for fraud like "deep fakes" (AI-generated fake audio or video that mimics real people). It establishes a temporary task force to study these issues and provide Congress with recommendations to protect consumers from data theft, identity theft, and scams, especially in areas like voice banking.
Key Provisions
- Establishment of Task Force: Creates the Task Force on Artificial Intelligence in the Financial Services Sector, chaired by the Secretary of the Treasury (or designee). Members include designees from key federal agencies: Comptroller of the Currency, Federal Reserve Board, Federal Deposit Insurance Corporation, Bureau of Consumer Financial Protection, National Credit Union Administration, and Financial Crimes Enforcement Network.
- Reporting Requirements: The task force must submit a report to Congress within one year of the bill's enactment. The report includes:
- Descriptions of how banks and credit unions currently protect against AI-based fraud.
- Standard definitions for AI terms, such as generative AI (AI that creates new content like text or images), machine learning (AI that learns from data to improve predictions), natural language processing (AI that understands human language), algorithmic AI (AI based on rule-following algorithms), and deep fakes.
- Analysis of risks from bad actors using AI for stealing data, identities, or committing fraud.
- Best practices for financial institutions to safeguard customers.
- Recommendations for new laws and regulations to oversee AI and enhance consumer protections.
- Consultation Process: Within 90 days of enactment, the task force must seek public input. It also consults industry stakeholders (e.g., banks and credit unions of different sizes, third-party AI vendors) and AI experts during report development.
- Termination: The task force dissolves 90 days after issuing the final report.
Significant Changes to Existing Law
This bill introduces a new federal task force focused specifically on AI risks in finance, which does not exist under current law. It builds on existing consumer protection frameworks (e.g., those from the Federal Reserve or Consumer Financial Protection Bureau) by mandating a coordinated study and potential regulatory updates, but it does not immediately alter statutes like banking laws or fraud prevention rules—instead, it sets the stage for future changes through recommendations.
Potential Impacts
- On Government Agencies: Requires federal financial regulators to collaborate and dedicate resources to AI research, potentially leading to new guidelines or enforcement priorities without immediate budget increases specified.
- On Citizens: Could enhance protections against AI-driven scams, making financial services like voice banking safer and reducing risks of identity theft or fraud for everyday consumers.
- On International Relations: Minimal direct impact, though recommendations might influence U.S. standards for global financial tech, indirectly affecting cross-border AI use in banking.
- Broader Effects: May encourage financial institutions to adopt better AI defenses proactively, fostering innovation while mitigating risks.
Main Stakeholders Affected
- Financial Institutions: Banks, credit unions (especially smaller ones), and third-party vendors using AI, who must provide input and may face future compliance requirements.
- Consumers: Individuals using banking services, particularly those relying on voice or digital authentication, who stand to benefit from fraud protections.
- Regulators and Government: Federal agencies involved in finance and consumer protection, tasked with leading the effort and implementing any resulting policies.
- AI Experts and Industry: Technology developers and specialists consulted for insights, potentially shaping AI standards in finance.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill's recommendations could lead to new regulations under existing authorities (e.g., expanding anti-fraud rules), but it avoids direct mandates to prevent overreach. No challenges to free speech or privacy rights are evident, as it focuses on voluntary best practices and targeted fraud prevention.
- Constitutional: Aligns with Congress's commerce clause authority over financial systems; no apparent conflicts with due process or other amendments.
- Political: Bipartisan sponsorship (from Democrats and Republicans) signals broad support for AI oversight in finance, potentially paving the way for consensus-driven reforms amid rising concerns over tech-enabled crime. It emphasizes study over immediate action, reducing partisan divides.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Pettersen, Brittany [D-CO-7]
Cosponsors (11)
Rep. Flood, Mike [R-NE-1], Rep. Bonamici, Suzanne [D-OR-1], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Ocasio-Cortez, Alexandria [D-NY-14], Rep. Harder, Josh [D-CA-9], Rep. Lawler, Michael [R-NY-17], Rep. Nunn, Zachary [R-IA-3], Rep. Gottheimer, Josh [D-NJ-5], Rep. Mackenzie, Ryan [R-PA-7], Rep. Bresnahan, Robert P. [R-PA-8], Rep. Van Drew, Jefferson [R-NJ-2]
Recent Actions
- 2025-02-27: Referred to the House Committee on Financial Services.
- 2025-02-27: Introduced in House
- 2025-02-27: Introduced in House
Bill Versions
- Preventing Deep Fake Scams Act — issued 2025-02-27 — PDF (5 pages)