H.R. 1734: Preventing Deep Fake Scams Act

H.R. 1734, the Preventing Deep Fake Scams Act, is a study-and-recommendations bill focused on the financial sector. It starts from a simple problem: banks and credit unions are using more artificial intelligence tools, but scammers can also use AI, including deep-fake voice and audio tools built from clips gathered on social media, to steal data, impersonate customers, and commit fraud. The bill specifically points to threats involving data theft, identity theft, and fraud, including risks to account security where institutions use voice-based banking features.

The bill's main action is to create a seven-member Task Force on Artificial Intelligence in the Financial Services Sector. The members would be the Secretary of the Treasury as Chair, plus the Comptroller of the Currency, the Chairman of the Board of Governors of the Federal Reserve System, the Chairperson of the Federal Deposit Insurance Corporation, the Director of the Bureau of Consumer Financial Protection, the Chairman of the National Credit Union Administration, and the Director of the Financial Crimes Enforcement Network, or their designees. That lineup matters because it pulls together the top federal agencies that oversee banks, credit unions, consumer protection, and financial crime.

The timetable is tight. The task force would have to solicit public feedback not later than 90 days after enactment, consult with depository institutions and credit unions of varying asset sizes, third-party vendors using AI for financial services, and AI experts, and then send a report to Congress not later than 1 year after enactment. That report must include standard definitions for "generative AI," "machine learning," "natural language processing," "algorithmic AI," and "deep fakes," along with descriptions of proactive fraud protections already used by banks and credit unions, a list of best practices to protect customers, and legislative and regulatory recommendations.

What the bill does not do is just as important. It does not set new penalties, create a private right of action, require banks to adopt a specific technology, or authorize a stated dollar amount for implementation. Instead, it is laying groundwork for future action by forcing regulators to agree on definitions, gather public input early within 90 days, and deliver a concrete roadmap to Congress within 1 year. The task force would then terminate 90 days after the final report is issued, underscoring that this is meant to be a fast-turn policy sprint rather than a permanent new bureaucracy.