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119-hr-6306119th CongressWALLET

AI Fraud Deterrence Act

Sponsored By: Representative Lieu, Ted [D-CA-36]

Introduced

Summary

Deters AI-enabled financial crime by boosting penalties for fraud, money laundering, and impersonation. The bill would add AI-specific fines and longer prison terms across several federal offenses and adopts the National AI Initiative Act definition of artificial intelligence.

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  • People who use AI to commit mail or wire fraud would face higher thresholds and tougher penalties. It raises the base monetary threshold for those offenses to $2 million and adds AI-enhanced penalties that include longer prison terms up to 20 years.
  • Financial-crime actors face stiffer consequences. AI-assisted bank fraud could carry penalties reaching 30 years in prison, and AI-aided money laundering could trigger penalties up to three times the value of the funds involved and long prison terms.
  • Impersonating federal officials with AI would become more severely punishable. Such impersonation can bring fines up to $1 million and up to 3 years in prison, while the bill preserves clearly labeled satire and parody and ties the term "AI" to section 5002 of the National AI Initiative Act.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Higher penalties for AI-aided financial crimes

This bill would raise penalties when AI helps commit fraud or money laundering. Mail and wire fraud thresholds would rise from $1,000,000 to $2,000,000. Mail and wire fraud done with AI could bring up to a $1,000,000 fine and up to 20 years in prison. Bank fraud done with AI could bring up to a $2,000,000 fine and up to 30 years in prison. AI-aided money laundering could bring up to a $1,000,000 fine or up to three times the funds, and up to 20 years. These changes would take effect upon enactment.

Penalties for AI impersonating federal officials

This bill would add higher penalties when AI is used to impersonate a federal official. Offenders could face up to a $1,000,000 fine and up to 3 years in prison. It would protect satire and parody that clearly disclose they are not real. These changes would take effect upon enactment.

Shared definition of artificial intelligence in crimes

This bill would use the National Artificial Intelligence Initiative Act of 2020 definition of “artificial intelligence” for certain crimes. The shared definition would apply to fraud and related offenses, impersonation, and money laundering. This could clarify which tools count as AI for those penalties. It would take effect upon enactment.

Sponsors & CoSponsors

Sponsor

Lieu, Ted [D-CA-36]

CA • D

Cosponsors

  • Rep. Dunn, Neal P. [R-FL-2]

    FL • R

    Sponsored 11/25/2025

Roll Call Votes

No roll call votes available for this bill.

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