Introduction: The Federal Trade Commission (FTC) has taken strides to combat the rising threat of AI impersonation scams. As technology evolves, so do the methods employed by fraudsters. This has prompted the FTC to propose and finalize new rules aimed at extending protections against not only entities like governments and business, but to AI impersonations of individuals.
This move comes as a supplement to the rules already in place for government and business impersonation. The agency, recognizing the potential harm caused by emerging technologies such as AI-generated deepfakes, will seek public input on these protections.
Understanding the FTC’s Proposed Rule Changes
The FTC has finalized the Government and Business Impersonation Rule. It equips the agency with stronger tools to combat scammers impersonating businesses or government agencies. The finalized rule empowers the FTC to file federal court cases directly against scammers. And it allows for the recovery of funds obtained through fraudulent activities, like AI Impersonation Scams.
“Fraudsters are using AI tools to impersonate individuals with eerie precision and at a much wider scale. With voice cloning and other AI-driven scams on the rise, protecting Americans from impersonator fraud is more critical than ever,” said FTC Chair Lina Khan.
Interestingly, the FTC acknowledged that not only the perpetrators but also enablers may be on the hook. Companies providing tools for creating and deploying deceptive content may also face the Agency’s scrutiny. And the FTC is seeking public input on the liability of such enabling companies
Expanding Authority to Combat AI-Enabled Fraud
The proposed expansion of the rule extends beyond penalizing scammers themselves. It will include those providing the means and instrumentalities for impersonation scams. The FTC aims to hold companies accountable if they know or have reason to believe their goods or services are used for unlawful impersonations.
The commission voted to extend liability “those who provide goods or services with knowledge or reason to know that those goods or services will be used in impersonations of the kind that are themselves unlawful under the Rule.”
This broadened authority aligns responsibility with capability and control, reflecting the urgency of addressing the proliferation of AI-enabled fraud. Read more about ways you can protect yourself from AI Impersonation Scams in our ‘Spotting Scams’ series, here.
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