H.R. 1734 — Preventing Deep Fake Scams Act

This section states six congressional findings concerning artificial intelligence in the financial services sector, including its innovative uses and benefits to banks, credit unions, and consumers; unique threats to customer account safety and security; prevalence of voice banking; and risks from bad actors using social media-obtained materials and deep fakes (i.e., voice and audio manipulation) for data theft, identity theft, fraud, and unauthorized account access.

This section establishes a Task Force on Artificial Intelligence in the Financial Services Sector, chaired by the Secretary of the Treasury (or designee), with members from the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Bureau of Consumer Financial Protection, National Credit Union Administration, and Financial Crimes Enforcement Network (or their designees). Within 90 days of enactment, the Task Force must solicit public feedback and consult with industry stakeholders (e.g., banks and credit unions of varying sizes, AI vendors, and AI experts) in developing a report to Congress, due within one year of enactment, that covers (1) how banks and credit unions use AI to protect against fraud; (2) standard definitions for AI terms (e.g., generative AI, machine learning, natural language processing, algorithmic AI, deep fakes); (3) risks from bad actors using AI for data theft, identity theft, and fraud; (4) best practices for financial institutions to safeguard customers; and (5) legislative and regulatory recommendations. The Task Force terminates 90 days after issuing the report.