FTC Warns AI Could Fuel Rise in Fraud and Scams

Washington D.C. The Federal Trade Commission (FTC) has issued a warning about the potential for artificial intelligence (AI) to escalate fraud and scams targeting consumers. FTC Chair Lina Khan expressed concerns that AI tools, such as ChatGPT, could lead to a dramatic increase in consumer harm.

Khan emphasized that AI's ability to generate realistic text, images, and audio could be exploited by scammers to create more convincing and sophisticated schemes. This could make it harder for consumers to distinguish between legitimate offers and fraudulent ones, leading to increased financial losses and other forms of harm.

The FTC believes it possesses the necessary legal authority to regulate AI-driven consumer harms under existing laws. The agency has a history of cracking down on deceptive and unfair business practices, and it intends to apply these principles to the emerging challenges posed by AI. The FTC is actively monitoring the development and deployment of AI technologies to identify potential risks and develop appropriate regulatory responses.

While AI offers many potential benefits, the FTC is committed to ensuring that these technologies are used responsibly and do not become a breeding ground for fraud and scams. The agency encourages consumers to be vigilant and report any suspicious activity to the FTC.