Reps. Ted Lieu, D-Calif., and Kevin Kiley, R-Calif., introduced a bipartisan bill on Friday that would increase the maximum penalties for various kinds of fraud committed with the help of AI technology.
The AI Fraud Deterrence Act would increase fines on those who use AI to commit wire fraud, mail fraud, bank fraud, or money laundering.
“In the right hands, AI can improve lives, and in the wrong hands, AI can be dangerous,” said Rep. Lieu, who co-chairs the House AI Task Force. “Criminals have access to more information and technology than ever before and that puts everyday Americans at greater risk of becoming victims of fraud or scams.”
“We should have in place harsh punishments for using this technology to clone voices, create fake videos, doctor documents, and cull information rapidly in the commission of a crime,” he added. “Increasing the penalties for committing fraud using AI is one way to deter bad actors from abusing this technology. I’m pleased to join Congressman Kiley in introducing this important piece of legislation to help keep people safe.”
Under current law, those who commit mail fraud or wire fraud face a maximum fine of $250,000 or a maximum fine of $1 million if the fraud affects disaster aid or a financial institution.
Under the proposed legislation, the maximum fine would be $1 million if the fraud is committed with AI. The maximum fine would be $2 million if the fraud affects disaster aid or a financial institution, “regardless of whether the fraud is committed with AI,” the members’ press release says.
For bank fraud, there is a $1 million fine under current law. Under the proposed bill, that fine would increase to $2 million if the fraud is committed with AI.
As for money laundering, the maximum fine under current law is $500,000 “or twice the value of the property involved, whichever is greater.” If the money laundering is executed using AI, the proposed bill would bump the maximum fine to $1 million “or thrice the value of the property involved, whichever is greater.”
“The AI Fraud Deterrence Act represents a critical step in safeguarding our digital ecosystems and establishing protections against misuse while fostering trust in technology. By strengthening penalties for criminal misuse, we make it likelier that innovation will serve the public good,” said Rep. Kiley. “I am happy to partner with Congressman Lieu on this issue to keep people safe and ensure AI is used for the correct reasons.”
