S.2117 - Preventing Deep Fake Scams Act (119th Congress)
Summary
The "Preventing Deep Fake Scams Act" (S.2117) aims to address the emerging threat of artificial intelligence (AI) being used for fraudulent activities in the financial sector. The bill proposes establishing a Task Force on Artificial Intelligence in the Financial Services Sector. This task force would be responsible for studying the use of AI, its potential risks, and recommending legislative and regulatory actions to protect consumers from data theft, identity theft, and fraud.
Expected Effects
The Act will likely lead to increased scrutiny and regulation of AI applications within the financial services industry. It will also result in the development of best practices and standard definitions related to AI technologies like generative AI and deep fakes. Ultimately, the goal is to mitigate the risks associated with AI-driven fraud and protect consumers' financial accounts.
Potential Benefits
- Enhanced consumer protection against AI-driven fraud.
- Development of industry best practices for AI security.
- Establishment of standard definitions for AI technologies.
- Increased awareness of AI-related risks in the financial sector.
- Potential for more secure and reliable financial services.
Most Benefited Areas:
Potential Disadvantages
- Potential for increased regulatory burden on financial institutions.
- Possible stifling of innovation in AI applications within finance.
- Risk of the task force's recommendations being ineffective or outdated.
- Compliance costs for financial institutions adopting new AI security measures.
- Potential for unintended consequences from AI regulations.
Constitutional Alignment
The bill appears to align with the Constitution's implied powers related to regulating commerce and protecting citizens from fraud. Congress has the authority to regulate interstate commerce, which includes financial transactions, and to enact laws necessary and proper for carrying out these powers (Article I, Section 8). The establishment of a task force and the subsequent regulations would fall under this purview.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).