Bill Summary
The "AI Fraud Accountability Act of 2026" is a legislative proposal aimed at addressing and preventing digital impersonation fraud. Here are its key components:
1. **Short Title**: The act is officially named the AI Fraud Accountability Act of 2026.
2. **Criminal Prohibition**: The act amends the Communications Act of 1934 to make it illegal to use digital impersonations—whether of real or imaginary individuals—to commit fraud. This includes creating visual or audio representations that are indistinguishable from authentic ones, with the intent to deceive and defraud individuals of money or valuable items.
3. **Penalties**: Violators of this law could face fines, imprisonment for up to three years, or both. Additionally, threats to commit such fraud for intimidation or coercion purposes are also penalized.
4. **Enforcement**: The Federal Trade Commission (FTC) is empowered to enforce these provisions, treating violations as unfair or deceptive practices under existing laws.
5. **Working Group**: The act establishes a working group led by the Secretary of Commerce to develop best practices for recognizing and preventing digital impersonation fraud. This group will include representatives from various government and private sectors, including digital forensics experts.
6. **International Cooperation**: The act requires the FTC to identify foreign countries where such fraud is prevalent and to enter cooperative agreements with those countries to aid enforcement efforts.
7. **First Amendment Protections**: Importantly, the act explicitly states that it does not restrict rights protected by the First Amendment, such as parody, satire, or journalism.
Overall, the AI Fraud Accountability Act intends to create a robust framework for combating digital impersonation fraud while protecting individual rights.
Possible Impacts
The "AI Fraud Accountability Act of 2026" aims to establish protections against digital impersonation fraud. Here are three examples of how this legislation could affect people:
1. **Increased Security Against Fraud**: Individuals could experience greater protection from financial scams and identity theft. With the criminal prohibition on digital impersonation, people may feel more secure when engaging in online transactions, as there would be legal consequences for those attempting to defraud others through impersonation. This could lead to increased consumer confidence in digital platforms, knowing that there are measures in place to protect them from fraudulent activities.
2. **Legal Recourse for Victims**: If someone becomes a victim of digital impersonation fraud, they would have clearer legal pathways to seek justice and compensation. The Act allows for penalties against offenders, including fines and imprisonment. This could empower victims to report such crimes without fear of being dismissed, knowing there is a legal framework supporting their claims and potential restitution for their losses.
3. **Impact on Digital Content Creators**: The legislation may also affect content creators and influencers who utilize digital platforms. They might need to be more vigilant about protecting their likenesses and voices from being used in unauthorized digital impersonations. Additionally, there could be implications for how content is created and shared, as creators may need to implement more stringent measures to verify authenticity and prevent misuse of their digital identities, impacting their creative processes and business models.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3982 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 3982
To establish protections against digital impersonation fraud, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 4, 2026
Mr. Sheehy (for himself and Ms. Blunt Rochester) introduced the
following bill; which was read twice and referred to the Committee on
Commerce, Science, and Transportation
_______________________________________________________________________
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 of
2026''.
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>