AI Fraud Accountability Act of 2026

This bill, known as the AI Fraud Accountability Act of 2026, establishes both criminal and civil prohibitions against using digital impersonations to commit fraud. A digital impersonation is defined as a technologically generated visual or audio depiction of a real or imaginary individual that is indistinguishable from an authentic one, used with the intent to defraud a person of value. The criminal offense carries penalties of fines, up to three years imprisonment, or both, and includes provisions for asset forfeiture and extraterritorial jurisdiction. The civil prohibition empowers the Federal Trade Commission (FTC) to enforce violations as unfair or deceptive acts, with both prohibitions exempting authorized law enforcement and intelligence activities. To develop countermeasures, the bill mandates the Secretary of Commerce, via the National Institute of Standards and Technology (NIST), to establish a Working Group . This group, composed of government, industry, and AI/digital forensics experts, will research and publish best practices for recognizing, detecting, preventing, and tracing fraudulent digital impersonations, with regular reviews and updates. The legislation also promotes international cooperation, directing the FTC to identify countries with high occurrences of these violations and pursue agreements with foreign law enforcement. The Department of Justice will similarly review and modify international agreements to aid in enforcing criminal violations originating abroad, while explicitly safeguarding First Amendment rights like parody and journalism.