House Bill Seeks Tougher Penalties for AI-Enabled Fraud and Bans Deepfake Impersonation of Federal Officials

Overview

• Reps. Ted Lieu (D-CA) and Neal Dunn (R-FL) introduced the AI Fraud Deterrence Act this week, citing recent AI-driven impersonations of White House Chief of Staff Susie Wiles and Secretary of State Marco Rubio.
• The proposal explicitly adds AI-mediated deception to mail and wire fraud, setting fines up to $1 million and prison terms up to 20 years for mail fraud and 30 years for wire fraud when AI is used.
• Bank fraud penalties would double to a $2 million maximum fine with sentences up to 30 years for AI-assisted schemes, while AI-aided money laundering could draw up to 20 years and fines of $1 million or three times the transaction value.
• The bill would make AI impersonation of federal officials a crime punishable by up to three years in prison and a $1 million fine.
• The draft adopts the National AI Initiative Act definition of AI and includes a carveout for clearly disclosed satire or parody, as experts warn that proving AI use remains difficult without stronger digital forensics and provenance systems.