Artificial Intelligence Scam Prevention Act

Bill Number: S. 3495
Origin Chamber: Senate
Congress: 119th Congress, Session 1
Policy Area: Commerce
Status: Introduced
Latest Action: 2025-12-16: Read twice and referred to the Committee on Commerce, Science, and Transportation.
Last Updated: 2026-01-12T22:31:14Z

AI-Generated Summary

Purpose of the Legislation

The Artificial Intelligence Scam Prevention Act aims to combat fraud and scams facilitated by artificial intelligence (AI) technologies, such as deepfakes (AI-generated fake videos or audio that mimic real people) and voice cloning (AI recreating someone's voice from a short sample). It seeks to update laws to address how AI makes scams more convincing, widespread, and easier to execute, while protecting consumers—especially vulnerable groups like seniors—from financial losses, which exceeded $1.4 billion from phone and text scams in 2024.

Key Provisions

Prohibitions on AI-Enabled Fraud:
Makes it illegal to impersonate government, businesses, or officials in commerce for deceptive purposes.
Bans replicating an individual's image or voice using AI with intent to defraud.
Prohibits providing substantial help to others committing these acts if you know or should reasonably know about the fraud.
The Federal Trade Commission (FTC) enforces these as unfair or deceptive practices under existing FTC rules, with full FTC powers including penalties.

Updates to Consumer Protection Resources:
Amends the Seniors Fraud Prevention Act to require the Seniors Fraud Advisory Office to provide information on AI-enabled scams.

Requirements for Communications Using AI:
Expands definitions in the Telemarketing and Consumer Fraud and Abuse Prevention Act to include text messages (e.g., SMS, MMS, RCS) and video conference calls alongside phone calls.
Mandates clear, prompt disclosure if AI is used to mimic a human in telemarketing calls or texts.
Amends the Communications Act of 1934 to:
Define "artificial or prerecorded voice" to include AI-generated speech or conduct that mimics real people.
Extend robocall restrictions (e.g., bans on unsolicited calls to residences or mobiles) to text messages.
Require disclosures at the start of calls or texts using automatic dialing systems or AI to emulate humans.
Clarify that these rules do not limit telemarketing protections.

Reporting and Awareness Improvements:
Directs the FTC, in consultation with the Attorney General and Federal Communications Commission (FCC), to update its website with searchable info on AI scams, including regional resources and law enforcement contacts.
Establishes procedures for logging scam complaints in the FTC's Consumer Sentinel Network and sharing them with authorities, plus providing educational info on common scams.
Requires collaboration with media and law enforcement to educate seniors and caregivers about AI scams.

AI Scams Advisory Group:
Creates a joint FTC-FCC group with members from federal agencies (e.g., Treasury, Justice Department, Consumer Financial Protection Bureau) and private sectors (e.g., retail, telecom, consumer advocacy).
Duties include collecting data on educational programs for scam prevention, identifying gaps, and developing model materials, best practices, and guidance (e.g., employee training, signage in stores, tech for detecting scams).
The group submits annual reports to Congress with recommendations; it terminates after 5 years.

Reporting Requirements:
FTC must submit annual reports to Congress on AI scam types (e.g., voice cloning) and prevention policies.
Updates FCC reporting on robocalls and misleading caller ID to include high-volume unlawful texts; FCC must issue implementing rules within 270 days.

Significant Changes to Existing Law

Federal Trade Commission Act: Treats AI impersonation as a new type of unfair/deceptive practice, expanding FTC enforcement without limiting other authorities.
Telemarketing and Consumer Fraud and Abuse Prevention Act: Broadens "telemarketing" to cover texts and video calls; adds mandatory AI disclosure, closing gaps in how AI is used for sales pitches.
Communications Act of 1934: Redefines key terms (e.g., "artificial voice" now explicitly includes AI); applies anti-robocall rules to texts for the first time; adds AI disclosure mandates; streamlines reporting by removing outdated consumer-specific limits and focusing on violations broadly.
Seniors Fraud Prevention Act: Adds AI-specific scam info to advisory resources, enhancing focus on emerging tech threats.
These changes modernize laws originally designed for pre-AI era fraud, making them applicable to digital and AI-driven methods without creating entirely new frameworks.

Potential Impacts

On Citizens: Increases protection against AI-powered scams, potentially reducing financial losses (e.g., from fake voices demanding money). Seniors and families gain better access to education and reporting tools, fostering awareness and quicker law enforcement response. However, it may lead to more interrupted communications if disclosures are frequent.
On Government Agencies: Empowers FTC and FCC with clearer enforcement tools, expanded reporting duties, and an advisory group for coordination. This could improve inter-agency data sharing but add administrative burdens, like annual reports and website updates.
On Businesses: Telecom, retail, and financial firms must comply with disclosures and train staff, possibly increasing costs for AI tools or signage. It encourages voluntary adoption of anti-scam tech at points of sale (e.g., gift cards, wire transfers).
On International Relations: Minimal direct impact, though it could influence global standards for AI fraud prevention by highlighting U.S. efforts; no provisions address cross-border enforcement explicitly.

Main Stakeholders Affected

Consumers: Especially seniors, who are frequent scam targets, benefiting from protections and education.
Scammers and Fraudsters: Face new federal bans and penalties, making AI-enabled schemes riskier and harder to execute.
Businesses and Industries: Telecom providers, retailers, gift card issuers, wire-transfer services, and AI developers must adapt to disclosure rules and best practices.
Government Agencies: FTC, FCC, Department of Justice, Treasury, and Consumer Financial Protection Bureau gain enforcement roles and collaborative duties.
Advocacy Groups: Consumer protection organizations participate in the advisory group and benefit from enhanced resources.

Notable Legal, Constitutional, or Political Implications

Legal: Strengthens consumer fraud statutes by integrating AI into existing frameworks, allowing swift FTC/FCC action without new courts or agencies. Penalties align with current FTC powers (e.g., fines, injunctions), but "substantial assistance" clauses could broaden liability for tech enablers—potentially leading to lawsuits over what constitutes "knowing" involvement.
Constitutional: The impersonation ban targets fraud intent, likely surviving First Amendment challenges as it regulates deceptive commercial speech rather than protected expression. However, broad AI voice/image replication rules might raise concerns if applied beyond fraud (e.g., to satire or art), though the bill limits scope to commerce and intent to defraud.
Political: Bipartisan (introduced by Sens. Klobuchar and Capito), reflecting consensus on tech-driven consumer harms. It promotes public-private partnerships via the advisory group, but the 5-year sunset clause allows future review. Could set precedent for regulating AI in other areas like privacy or elections, emphasizing proactive federal response to tech evolution without overly restricting innovation.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Klobuchar, Amy [D-MN]

Cosponsors (1)

Sen. Capito, Shelley Moore [R-WV]

Recent Actions

2025-12-16: Read twice and referred to the Committee on Commerce, Science, and Transportation.
2025-12-16: Introduced in Senate

Bill Versions

Artificial Intelligence Scam Prevention Act — issued 2025-12-16 — PDF (19 pages)