A new Pennsylvania law intended to crack down on AI-powered fraud and financial crimes makes it a felony to use artificial intelligence to produce non-consensual “forged digital likenesses” like deepfakes or voice clones to injure, financially exploit, or scam people.
Governor Josh Shapiro signed SB 649 into law giving prosecutors the ability to charge bad actors with a third-degree felony if they use AI-generated fake content to commit fraud or cause injury — including schemes like faking a grandchild’s voice to trick older adults into sending money.
“I’m proud to see the Governor signing my bipartisan legislation to better protect Pennsylvanians from deepfake impersonations and scams that have already cost victims millions,” said Senator Tracy Pennycuick. “Now law enforcement will have the tools they need to hold bad actors responsible, creating a powerful deterrent that will make criminals think twice before attempting these digital deceptions.”
This bill builds on other Shapiro Administration consumer protection efforts by the Departments of Aging, Banking and Securities, and the Insurance Department to raise awareness and protect residents.
Older adults remain especially vulnerable: the Department of Aging received nearly 18,500 reports of financial exploitation in 2023-24 — nearly one-third of all abuse reports — and the number of financial exploitation cases has nearly doubled since 2017.
“Older adults being the target of scams has continued to rise each year. Last year financial exploitation became the most reported form of abuse for older Pennsylvanians. Increasingly sophisticated technology gives the victim a false sense of familiarity, with devastating results,” said Secretary of Aging Jason Kavulich.
The Department of Banking and Securities (DoBS) is promoting education to help Pennsylvanians recognize AI-driven scams and identity theft. In 2024, DoBS reached nearly 35,000 Pennsylvanians through free events and programs, answered over 10,000 consumer inquiries, and helped return millions to harmed consumers.”
The Pennsylvania Insurance Department (PID) has taken steps to regulate how AI is used in the insurance industry. Last year, the agency issued guidance reminding insurers that decisions supported by AI must comply with existing laws and protect consumers against unfair discrimination or inaccuracies.
“Advancing technology offers real benefits, but scammers can exploit it to target Pennsylvanians,” said Insurance Commissioner Michael Humphreys. “This law helps hold those bad actors accountable — and we remind everyone to verify calls or offers that sound too good to be true.”
In May, the state launched a hotline, website, and email address to make it easier for Pennsylvanians to report scams, resolve financial and insurance issues, and get help from state agencies. Residents are routed to the right agency — whether it’s a denied insurance claim, suspicious financial transaction, student loan scam, or utility issue.
Topics
InsurTech
Data Driven
Artificial Intelligence
Pennsylvania
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