The Federal Trade Commission is intervening as Congress works on formulating regulations for artificial intelligence. To tackle the issue of AI-generated phone scams, the FTC has proposed launching a competition to gather ideas from the public on how to safeguard individuals from such deceptive practices.
These fraudulent schemes often entail scammers using AI to mimic the voice of a family member, instilling a sense of urgency and deceiving individuals into transferring large sums of money under false pretenses.
Maxson, a member of the FTC’s Division of Marketing Practices, highlighted the widespread susceptibility to these scams, underscoring the difficulty consumers encounter in distinguishing between authentic and AI-generated calls, particularly when the scammer impersonates a familiar voice.
The FTC is aiming to encourage creative solutions by providing incentives to individuals who can effectively harness AI technologies to bolster consumer protection. The expected application period for this initiative is set to begin in January, building upon the agency’s past success in leveraging crowdsourcing to combat robocalls.
Despite a decline in reported phone scams since 2019, their complexity and prevalence have risen, presenting a significant risk, especially to small businesses, as pointed out by Lisa Gilbert from Public Citizen.
Gilbert praised the FTC’s proactive stance, recognizing the importance of utilizing AI advancements to combat fraudulent activities. However, she emphasized that such efforts should complement broader legislative actions enacted by Congress to strengthen consumer protection against AI-related fraud, encompassing various threats such as deepfakes affecting elections and misleading advertising practices.
Senate Majority Leader Chuck Schumer has indicated plans to comprehensively address AI regulations but has not yet revealed a detailed legislative package on the subject.
