FTC proposes two actions to combat AI impersonation fraud

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On February 15, the FTC announced its supplemental notice of proposed rulemaking relating to the protection of consumers from impersonation fraud, especially from any impersonations of government entities. The first action from the FTC was a final rule that prohibited the impersonation of government, business, and their officials or agents in interstate commerce. The second action was a notice seeking public comment on a supplemental proposed rulemaking that would revise the first action and add a prohibition on, and penalties for, the impersonation of individuals for entities who provide goods and services (with the knowledge or reason to know that those goods or services will be used in impersonations) that are unlawful. In tandem, these actions sought to prohibit the impersonation of government and business officials.
 

The FTC notes that these two actions come from “surging complaints” on impersonation fraud, specifically from artificial intelligence-generated deep fakes. The final rule will expand the remedies and provide monetary relief, whereas the FTC stated this rule will provide a “shorter, faster and more efficient path” for injured consumers to recover money. The rule would enable the FTC to seek monetary relief from scammers that use government seals or business logos, spoof government and business emails, and impersonate a government official or falsely imply a business affiliation.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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