Preventing Deep Fake Scams Act
- Bill Number
- S. 2117
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-06-18: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2025-12-05T22:52:41Z
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 risks like deep fakes—AI-generated fake audio or video used for fraud. 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.
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), with members from key federal agencies including the Comptroller of the Currency, Federal Reserve, Federal Deposit Insurance Corporation (FDIC), Bureau of Consumer Financial Protection (CFPB), National Credit Union Administration (NCUA), and Financial Crimes Enforcement Network (FinCEN).
- Reporting Requirements: The task force must submit a comprehensive report to Congress within one year of the bill's enactment. The report will include:
- How banks and credit unions currently protect against AI-related fraud.
- Standard definitions for AI terms, such as generative AI (AI that creates new content like text or images), machine learning (AI that improves from data), natural language processing (AI that understands human language), algorithmic AI (rule-based AI systems), and deep fakes (AI-manipulated media mimicking real people).
- Potential risks from bad actors using AI for fraud, such as stealing personal data or accessing accounts via voice banking (phone-based banking using voice recognition).
- Best practices for financial institutions to safeguard customers.
- Recommendations for new laws and regulations to oversee AI and prevent fraud.
- Consultation Process: Within 90 days of enactment, the task force will seek public input and consult with stakeholders like banks and credit unions of various sizes, AI-using vendors, and AI experts.
- Termination: The task force dissolves 90 days after submitting the final report.
Significant Changes to Existing Law
This bill introduces a new, short-term federal task force focused specifically on AI risks in finance, which does not exist under current law. It does not amend existing statutes but could influence future regulations through its recommendations, potentially building on laws like those enforced by the CFPB for consumer protection or FinCEN for financial crimes.
Potential Impacts
- On Government Agencies: Participating agencies will dedicate resources to the task force, fostering inter-agency collaboration on AI oversight. This could lead to coordinated policy development but adds short-term administrative workload.
- On Citizens: Consumers may benefit from enhanced fraud protections in banking, reducing risks from scams like deep fake voice impersonation, especially in voice-activated services. However, any resulting regulations could indirectly affect banking fees or access if institutions pass on compliance costs.
- On International Relations: No direct impacts, though recommendations might influence U.S. standards for AI in global finance, potentially affecting cross-border transactions or international fraud networks.
Main Stakeholders Affected
- Financial Institutions: Banks and credit unions, which must adapt to potential new best practices and regulations on AI use.
- Consumers: Everyday banking customers vulnerable to AI-driven fraud, such as identity theft via manipulated audio or video.
- AI Vendors and Experts: Third-party providers of AI tools to finance, who will be consulted and may face new compliance requirements.
- Regulators: Federal agencies involved in the task force, which will shape enforcement priorities for financial security.
Notable Legal, Constitutional, or Political Implications
- Legal: The bill emphasizes consumer protection without mandating immediate rules, allowing for evidence-based regulation that could expand agencies' authority over emerging tech like AI. It aligns with existing anti-fraud laws but highlights gaps in addressing deep fakes.
- Constitutional: No direct challenges; it operates within Congress's commerce clause powers to regulate interstate finance and protect economic security.
- Political: Bipartisan sponsorship (by Senators Husted and Warnock) signals broad concern over AI innovation versus security. The focus on deep fakes could spur debate on balancing tech advancement with privacy, potentially influencing broader AI policy in a rapidly evolving field.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Sen. Warnock, Raphael G. [D-GA]
Recent Actions
- 2025-06-18: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-06-18: Introduced in Senate
Bill Versions
- Preventing Deep Fake Scams Act — issued 2025-06-18 — PDF (5 pages)