Bill Summary
The **AI Fraud Accountability Act** aims to protect individuals from digital impersonation fraud by establishing new criminal prohibitions and enforcement mechanisms.
### Key Provisions:
1. **Criminal Prohibition**: The Act amends the Communications Act of 1934 to make it illegal to use digital impersonation—defined as creating visual or audio depictions of real or fictional individuals that are indistinguishable from authentic representations—to commit fraud. This includes posing as someone else to deceive others for financial gain.
2. **Penalties**: Violators of this law can face fines or imprisonment of up to three years. Additional penalties apply for threats of committing such fraud.
3. **Enforcement**: The Federal Trade Commission (FTC) is designated to enforce these provisions and will treat violations as unfair or deceptive acts under existing FTC regulations.
4. **Working Group**: The Act mandates the establishment of a working group led by the Department of Commerce to develop best practices and recommendations for recognizing and preventing digital impersonation fraud. This group will include various stakeholders from government and industry.
5. **International Cooperation**: The FTC is tasked with identifying countries where such fraud is prevalent and may enter into agreements with foreign law enforcement to enhance cooperation in enforcing these laws.
6. **First Amendment Protections**: The Act includes a clause that ensures it does not infringe upon rights related to parody, satire, or journalism, preserving First Amendment protections.
Overall, the **AI Fraud Accountability Act** seeks to address the growing threat of digital impersonation in the context of fraud, aiming to enhance legal frameworks and collaborative efforts to combat these crimes effectively.
Possible Impacts
The AI Fraud Accountability Act, as outlined in the legislation, could have various effects on individuals and society. Here are three examples:
1. **Enhanced Protection Against Fraud**: Individuals could benefit from increased protections against digital impersonation fraud. With clear legal prohibitions against the use of digital impersonations to commit fraud, victims of scams (such as phishing or identity theft) would have legal recourse. This could lead to a decrease in financial losses and emotional distress caused by impersonation scams, thereby fostering greater trust in online transactions and communications.
2. **Increased Accountability for Perpetrators**: The establishment of criminal penalties for engaging in digital impersonation could deter individuals from committing such acts. By imposing fines and potential imprisonment for offenders, the legislation aims to create a safer digital environment. This could reduce the prevalence of scams and fraudulent activities that exploit digital impersonations, resulting in a more secure online community for all users.
3. **Facilitation of Collaboration and Innovation in Digital Security**: The creation of a working group to develop best practices and recommendations for detecting and preventing digital impersonation fraud may encourage innovation in cybersecurity technologies. This collaboration among government agencies, private sectors, and experts in digital forensics could lead to the development of advanced tools and methods to combat impersonation fraud. Consequently, individuals and businesses might have access to improved security measures, enhancing their overall online safety and confidence in using digital platforms.
These examples illustrate how the AI Fraud Accountability Act could positively impact individuals by enhancing protections, increasing accountability, and fostering collaboration in developing effective security measures.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7786 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7786
To establish protections against digital impersonation fraud, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 4, 2026
Mr. Buchanan (for himself and Mr. Soto) introduced the following bill;
which was referred to the Committee on Energy and Commerce, and in
addition to the Committees on the Judiciary, Science, Space, and
Technology, and Foreign Affairs, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To establish protections against digital impersonation fraud, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``AI Fraud Accountability Act''.
SEC. 2. CRIMINAL PROHIBITION ON USE OF DIGITAL IMPERSONATIONS TO COMMIT
FRAUD.
(a) In General.--Section 223 of the Communications Act of 1934 (47
U.S.C. 223) is amended--
(1) by redesignating subsection (i) as subsection (j); and
(2) by inserting after subsection (h) the following:
``(i) Use of Digital Impersonations To Commit Fraud.--
``(1) Definitions.--In this subsection:
``(A) Digital impersonation.--The term `digital
impersonation' means any visual or audio depiction of--
``(i) an identifiable individual created
through the use of software, machine learning,
artificial intelligence, or any other computer-
generated or technological means, including by
adapting, modifying, manipulating, or altering
an authentic visual or audio depiction, that,
when viewed or listened to as a whole by a
reasonable person, is indistinguishable from an
authentic visual or audio depiction of the
individual; or
``(ii) an imaginary individual created
through the use of software, machine learning,
artificial intelligence, or any other computer-
generated or technological means, including by
adapting, modifying, manipulating, or altering
an authentic visual or audio depiction of an
imaginary individual, that, when viewed or
listened to as a whole by a reasonable person,
is indistinguishable from a visual or audio
depiction of a real individual.
``(B) Identifiable individual.--The term
`identifiable individual' means an individual--
``(i) who appears in whole or in part, or
is heard, in a digital impersonation; and
``(ii) whose face, likeness, voice, or
other distinguishing characteristic (including
a unique birthmark or other recognizable
feature) is displayed or heard in connection
with such digital impersonation.
``(2) Offense.--
``(A) In general.--Subject to subparagraph (B), it
shall be unlawful for a person, in interstate or
foreign communications, to falsely pose as an
identifiable individual or imaginary individual, in a
manner intended to be taken as genuine, in a digital
impersonation, with intent to defraud a person of any
money, paper, document, or thing of value.
``(B) Exceptions.--Subparagraph (A) shall not apply
to a lawfully authorized investigative, protective, or
intelligence activity of--
``(i) a law enforcement agency of the
United States, a State, or a political
subdivision of a State; or
``(ii) an intelligence agency of the United
States;
``(3) Penalties.--Any person who violates paragraph (2)
shall be fined under title 18, United States Code, imprisoned
not more than 3 years, or both.
``(4) Threats.--Any person who intentionally threatens to
commit the offense under paragraph (2) for the purpose of
intimidation, coercion, extortion, or to create mental distress
shall be punished as provided in paragraph (3).
``(5) Forfeiture.--
``(A) In general.--The court, in imposing a
sentence on any person convicted of a violation of
paragraph (2), shall order, in addition to any other
sentence imposed and irrespective of any other sentence
imposed and irrespective of any provision of State law,
that the person forfeit to the United States--
``(i) the person's interest in property,
real or personal, constituting or derived from
any gross proceeds of the violation, or any
property traceable to such property, obtained
or retained directly or indirectly as a result
of the violation; and
``(ii) any personal property of the person
used, or intended to be used, in any manner or
part, to commit or to facilitate the commission
of the violation.
``(B) Procedures.--Section 413 of the Controlled
Substances Act (21 U.S.C. 853), with the exception of
subsections (a) and (d), shall apply to the criminal
forfeiture of property under subparagraph (A).
``(6) Extraterritorial jurisdiction.--There is
extraterritorial Federal jurisdiction over an offense under
paragraph (2).''.
(b) Defenses.--Section 223(e)(1) of the Communications Act of 1934
(47 U.S.C. 223(e)(1)) is amended by striking ``or (h)'' and inserting
``(h), or (i)''.
SEC. 3. PROTECTION AGAINST DIGITAL IMPERSONATION FRAUD.
(a) Prohibition.--
(1) In general.--Subject to paragraph (2), it shall be
unlawful for a person, in interstate or foreign commerce, to
falsely pose as an identifiable or imaginary individual in a
manner intended to be taken as genuine, in a digital
impersonation, with intent to defraud a person of any money,
paper, document, or thing of value.
(2) Exception.--The prohibition described in paragraph (1)
shall not apply to a lawfully authorized investigative,
protective, or intelligence activity of--
(A) a law enforcement agency of the United States,
a State, or a political subdivision of a State; or
(B) an intelligence agency of the United States.
(b) Enforcement by the Commission.--
(1) Unfair or deceptive acts or practices.--A violation of
subsection (a) shall be treated as a violation of a rule
defining an unfair or deceptive act or practice prescribed
under section 18(a)(1)(B) of the Federal Trade Commission Act
(15 U.S.C. 57a(a)(1)(B)).
(2) Powers of the commission.--
(A) In general.--The Commission shall enforce this
section in the same manner, by the same means, and with
the same jurisdiction, powers, and duties as though all
applicable terms and provisions of the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) were incorporated
into and made a part of this section.
(B) Privileges and immunities.--Any person who
violates subsection (a) shall be subject to the
penalties and entitled to the privileges and immunities
provided in the Federal Trade Commission Act (15 U.S.C.
41 et seq.).
(C) Authority preserved.--Nothing in this Act shall
be construed to limit the authority of the Commission
under any other provision of law.
(c) Definitions.--For purposes of this section:
(1) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(2) Digital impersonation; identifiable individual.--The
terms ``digital impersonation'' and ``identifiable individual''
have the meaning given such terms in section 223(i) of the
Communications Act of 1934 (47 U.S.C. 223(i)), as added by
section 2 of this Act.
SEC. 4. WORKING GROUP ON DIGITAL IMPERSONATION FRAUD.
(a) Definitions.--In this section:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Commerce, Science, and
Transportation of the Senate; and
(B) the Committee on Science, Space, and Technology
of the House of Representatives.
(2) Digital forensics.--The term ``digital forensics''
means scientific or technical practices used to recognize,
collect, analyze, or interpret digital evidence for the
purposes of investigating crimes or other incidents, including
the use of digital impersonation to commit fraud.
(3) Digital impersonation.--The term ``digital
impersonation'' has the meaning given that term in section
223(i) of the Communications Act of 1934 (47 U.S.C. 223(i)), as
added by section 2 of this Act.
(4) Director.--The term ``Director'' means the Director of
the National Institute of Standards and Technology.
(b) Establishment of Working Group.--
(1) In general.--Not later than 30 days after the date of
the enactment of this Act, the Secretary of Commerce, acting
through the Director, shall convene a working group (referred
to in this section as the ``Working Group'') to engage in
technical discussions and research for the development of best
practices and recommendations for the recognition, detection,
prevention, and tracing of digital impersonations used in
violation of section 223(i) of the Communications Act of 1934
(47 U.S.C. 223(i)), as amended by section 2 of this Act, and
section 3(a) of this Act.
(2) Composition.--The Working Group shall consist of--
(A) representatives from--
(i) the Department of Justice;
(ii) the Federal Trade Commission;
(iii) Federal, State, and local government
law enforcement agencies; and
(iv) private sector industries, including--
(I) financial services;
(II) health care;
(III) retail and e-commerce;
(IV) telecommunications; and
(V) digital platforms, including
social media platforms; and
(B) scientists and engineers with expertise in--
(i) digital forensics; and
(ii) artificial intelligence, including the
generation or detection of digital
impersonations.
(c) Public Workshop.--The Director shall--
(1) convene not less than 1 public workshop to solicit
input from stakeholders on the best practices and
recommendations developed under subsection (b)(1); and
(2) incorporate such input into the best practices and
recommendations as the Director considers appropriate.
(d) Publication of Best Practices and Recommendations.--Not later
than 1 year after the date of the enactment of this Act, the Director
shall publish on a publicly accessible website of the National
Institute of Standards and Technology a report that contains the best
practices and recommendations developed pursuant to subsection (b)(1)
and modified under subsection (c)(2).
(e) Annual Review and Updates.--Not later than 2 years after the
date of the enactment of this Act, and not less frequently than once
each year thereafter, the Director shall--
(1) review the best practices and recommendations developed
under this section; and
(2) update the best practices and recommendations published
under subsection (d) as the Director considers appropriate
pursuant to the most recent review conducted pursuant to
paragraph (1) of this subsection.
(f) Report to Congress.--Not later than 1 year after the date of
the enactment of this Act, and annually thereafter, the Director shall
submit to the appropriate committees of Congress a report that
summarizes--
(1) the meetings and collaboration of the Working Group
during the year preceding the submission of the report; and
(2) the work planned by the Working Group for the year
following the submission of the report.
(g) Sunset.--The requirements of this section shall terminate on
the date that is 10 years after the date of the enactment of this Act.
SEC. 5. COOPERATION WITH FOREIGN LAW ENFORCEMENT AGENCIES.
(a) List of Countries With Highest Occurrence of Violations.--Not
later than 90 days after the date of enactment of this section, the
Federal Trade Commission (in this section referred to as the
``Commission''), in consultation with the Attorney General and the
Secretary of State, shall identify a list of the top 10 foreign
countries where the highest occurrence of violations of section 2 or 3
originate and harm individuals located in the United States or a
territory thereof.
(b) FTC International Agreements.--
(1) In general.--Using the list of foreign countries
identified under subsection (a), the Commission, in
coordination with the Secretary of State, may enter into
agreements with such foreign countries to ensure the
cooperation of any foreign law enforcement agency in the
Commission's enforcement of this Act.
(2) Requirements.--Any agreement entered into by the
Commission under paragraph (1) shall be subject to the
requirements described in section 6(j)(4) of the Federal Trade
Commission Act (15 U.S.C. 46(j)(4)).
(3) Report to congress.--Not later than 1 year after the
date of enactment of this section, and annually thereafter, the
Commission shall submit to the Committee on Commerce, Science,
and Transportation of the Senate and the Committee on Energy
and Commerce of the House of Representatives a report on the
implementation of this subsection during the reporting period,
including--
(A) any new agreements with foreign countries (as
described in paragraph (1)) entered into during such
period;
(B) any negotiations regarding new agreements or
modifications to agreements with foreign countries
during such period;
(C) a description of the Commission's coordination
with foreign law enforcement agencies to enforce
alleged violations of section 3; and
(D) any challenges with cooperation of foreign law
enforcement agencies (including with respect to foreign
countries without an agreement under paragraph (1)) in
the enforcement of section 3.
(c) DOJ Review of International Law Enforcement Agency
Agreements.--
(1) In general.--Not later than 1 year after the date of
enactment of this section, and not less frequently than every 5
years thereafter, the Attorney General shall review and, as
necessary and consistent with authorities under applicable law,
modify international agreements with foreign law enforcement
agencies in foreign countries identified under subsection (a)
to encourage assistance with the enforcement of violations of
section 223(i) of the Communications Act of 1934, as added by
section 2 of this Act, that originate outside the United
States.
(2) Report.--Not later than 1 year after the date of
enactment of this section, and every 5 years thereafter, the
Attorney General shall submit to the Committee on Commerce,
Science, and Transportation of the Senate, the Committee on the
Judiciary of the Senate, the Committee on Energy and Commerce
of the House of Representatives, and the Committee on the
Judiciary of the House of Representatives a report that
includes--
(A) an analysis of the review conducted under
paragraph (1);
(B) a description of any modifications to
international agreements described in paragraph (1)
pursued by the Attorney General; and
(C) recommendations to strengthen the enforcement
of violations of section 223(i) of the Communications
Act of 1934, as added by section 2 of this Act, that--
(i) originate outside the United States;
and
(ii) harm United States persons located in
the United States.
SEC. 6. SAVINGS CLAUSE.
Nothing in this Act shall be construed to restrict parody, satire,
journalism, or any other rights, privileges, or immunities protected by
the First Amendment to the Constitution of the United States.
<all>