Senate Examines AI Scams as Congress Considers New Safeguards

Why It Matters

Artificial intelligence can clone a person's voice to impersonate a loved one, deceive family members and facilitate increasingly sophisticated fraud schemes. The Trump administration's National AI Framework calls on Congress to strengthen law enforcement efforts against AI-enabled scams targeting older Americans.

During a July 29 Senate Special Committee on Aging hearing, a California woman described falling victim to an AI-enabled scam while legal, financial and technology experts warned that criminals now have unprecedented tools at their disposal.

The Threat Has Accelerated

AI use among older adults nearly doubled between 2024 and 2025, according to AARP. The technology can clone someone's voice to impersonate loved ones and deceive family members. Deepfakes can also generate convincing videos of celebrities or trusted experts promoting fraudulent products. Witnesses said AI has made existing scams more effective while lowering the technical barriers for criminals by allowing sophisticated fraud schemes to be carried out with widely available AI tools.

Online scam losses in 2025 represented a 26% increase from 2024, with the average household losing $1,009. Scams and financial exploitation remain a significant challenge for older Americans, according to testimony presented during the hearing.

What Happened At The Hearing

Deborah Del Mastro, a victim of an AI-enabled scam, testified alongside her husband, Paul Del Mastro, describing how fraudulent AI-generated content convinced victims to purchase products before realizing they were fake. The "Today" show later investigated the scam, bringing it to a national audience.

Matthew F. Ferraro, a partner at Crowell & Moring LLP specializing in AI, cybersecurity and synthetic media law, testified about the legal dimensions of the growing fraud threat. Ferraro previously served as a senior cyber and emerging technology official at the Department of Homeland Security.

David Amron, medical director of The Roxbury Institute, testified about the risks AI-generated deception poses to consumers. Paul Benda, executive vice president of the American Bankers Association, discussed the financial industry's efforts to combat AI-enabled fraud. Ben Winters, director of AI and privacy at the Consumer Federation of America, warned that "the troubling trend of rapidly increasing scam losses continues while tech companies are too often allowed to avoid accountability."

The hearing examined how deepfakes, chatbots and other AI tools are being used to target older Americans. Committee Chair Sen. Rick Scott (R-FL) said criminals are increasingly cloning voices and impersonating loved ones with devastating precision.

The Legislative Response

Scott has introduced multiple bipartisan bills addressing different aspects of AI-enabled fraud.

The Aging with Artificial Intelligence Act, sponsored with Sens. Mark Kelly (D-AZ) and Roger Marshall (R-KS), would study AI-specific threats facing older Americans. The Report Scams.gov Act, introduced with Sen. Maggie Hassan (D-NH), would establish a centralized federal reporting portal that automatically routes complaints to appropriate federal and state agencies.

Working with Sen. Katie Britt (R-AL) and Ranking Member Sen. Kirsten Gillibrand (D-NY), Scott introduced the Guard Act, or Guarding Unprotected Aging Retirees from Deception Act, to expand federal grant programs, strengthen law enforcement training on elder fraud and improve investigators' ability to trace stolen cryptocurrency. Scott and Gillibrand also introduced the National Strategy for Combating Scams Act, which would require the FBI to develop a national strategy informed by victims, law enforcement agencies, nonprofit organizations and the private sector.

The Trump administration's National Policy Framework for Artificial Intelligence, released on March 20, 2026, calls on Congress to strengthen existing law enforcement efforts against AI-enabled fraud, impersonation and scams targeting vulnerable populations. The framework also states Congress should not establish a new AI regulatory agency but instead rely on existing agencies with relevant expertise.

Congress has also advanced related legislation. The TAKE IT DOWN Act passed the House 409-2 and the Senate by unanimous consent, establishing procedures for removing nonconsensual intimate images, including AI-generated content. The AI Labeling Act would require both visible and machine-readable labels identifying AI-generated images, videos, audio and chatbot interactions.

Industry And advocacy Groups Weigh In

The American Bankers Association called for stronger safeguards, improved cross-sector information sharing, and policies allowing banks to continue using AI defensively while limiting criminals' use of the technology.

AARP stated that "the AI Fraud Accountability Act sends a clear message: criminals using deepfakes and sophisticated AI to commit fraud will face serious consequences." The organization added that innovation should not come at the expense of consumer safety.

The Consumer Federation of America warned that the "Great American Artificial Intelligence Act" would "create a weak and convoluted regulatory state that lets AI companies continue to do whatever they want with impunity while in many cases preventing states from protecting their own residents." The organization instead urged Congress to advance privacy legislation, AI fraud legislation, chatbot liability proposals, surveillance pricing legislation and data center oversight measures.

Sen. Brian Schatz (D-HI) has advocated for AI transparency, arguing that "people deserve to know whether or not the videos, photos, and content they see and read online is real or not."

What comes next

The hearing represents one of several congressional efforts to address AI-enabled elder fraud. The Senate held multiple hearings on AI, scams and financial exploitation during the previous Congress, and lawmakers are expected to continue considering legislation aimed at protecting consumers from rapidly evolving AI-enabled fraud schemes.

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