Pennsylvania has taken a significant step in combating the rising threat of digital deception with the introduction of a new law that addresses AI-driven fraud and financial crimes. The law makes it a felony to use artificial intelligence to create non-consensual “forged digital likenesses,” including deepfakes and voice clones, aimed at injuring, financially exploiting, or scamming individuals.

The legislative initiative, signed into law by Governor Josh Shapiro, empowers prosecutors to charge individuals who utilize AI-generated fake content for fraudulent purposes with a third-degree felony. This legislative effort is particularly focused on preventing tragedies where wrongdoers impersonate family members, such as faking a grandchild’s voice to manipulate older adults into transferring money.

Senator Tracy Pennycuick, the driving force behind the bill, expressed pride in the bipartisan support that led to this crucial legislation. She emphasized that the law presents law enforcement with robust tools to hold accountable those who engage in digital deceit, thereby creating a deterrent effect against potential criminals.

The urgency of this law stems from alarming statistics regarding the vulnerability of older adults. The Department of Aging reported nearly 18,500 cases of financial exploitation in 2023-24, accounting for almost a third of all abuse reports. Shockingly, the number of exploitation cases has nearly doubled since 2017, underscoring the mounting dangers faced by the elderly population.

According to Jason Kavulich, Secretary of Aging, the continuous rise in scams targeted at older adults has made financial exploitation the most common type of abuse reported. He added that increasingly sophisticated technology creates a semblance of familiarity for victims, leading to devastating consequences.

In response to this alarming trend, the Pennsylvania Department of Banking and Securities (DoBS) has been active in educating residents on recognizing potential AI-driven scams and identity theft. In 2024, DoBS reached out to nearly 35,000 citizens through various free events and programs, addressing over 10,000 consumer inquiries and aiding in the recovery of millions for affected consumers.

Moreover, the Pennsylvania Insurance Department (PID) is taking proactive measures to oversee the use of AI within the insurance sector. Guidance issued by PID last year reiterated that insurance decisions influenced by AI must adhere to relevant laws while also safeguarding consumers against unfair discrimination and inaccuracies.

Insurance Commissioner Michael Humphreys highlighted the dual nature of advancing technology, noting its advantages while warning that it also presents opportunities for scammers. He affirmed that this new law assists in holding wrongdoers accountable while advising the public to verify unsolicited calls or offers that appear too good to be true.

Additionally, the state has established a dedicated hotline, a website, and an email address to facilitate the reporting of scams and to assist residents in resolving financial and insurance inquiries. This initiative helps direct residents to the appropriate agency for a myriad of issues including denied insurance claims, suspicious financial transactions, student loan scams, or utility-related concerns.

This comprehensive approach, spearheaded by various state departments, not only aims to deter potential scammers but also to empower residents with knowledge and tools to combat fraud effectively. As technology continues to advance, the importance of such regulatory measures becomes increasingly evident, especially in protecting the most vulnerable members of society.