Congress orders deep-dive on AI fraud threats in banking
H.R. 1734 — Preventing Deep Fake Scams Act · Filed by Brittany Pettersen (D-CO) · 11 cosponsors · Introduced Feb 27, 2025 · Referred to committee
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What it does
This bill creates a federal task force led by the Treasury Secretary and including heads of banking regulators to study how artificial intelligence is being used in financial services, with a focus on deep fake fraud risks. The task force will consult with banks, credit unions, AI vendors, and experts, then report to Congress within one year with definitions, best practices, risk assessments, and legislative recommendations to protect consumers from AI-enabled fraud and identity theft.
Why we flagged it
The bill's operative mechanism is the establishment of an interagency task force to study AI risks in financial services and report findings and recommendations to Congress. It is a fact-finding and advisory instrument, not a direct regulatory or appropriations measure.
What the text implies
- The task force's recommendations may lead to new AI-specific regulations or compliance requirements for banks and credit unions, potentially increasing operational costs that could be passed to consumers.
- Consultation with 'third-party vendors who use artificial intelligence' may give tech companies and AI service providers early input into regulatory frameworks, potentially shaping rules in their favor.
The full analysis lists 4 implications of this text.
Who stands to gain
AI and machine learning vendors serving financial institutions; Cybersecurity and fraud-detection software providers; Financial services firms (banks, credit unions) that may benefit from regulatory clarity