House Republicans highlight AI’s dual role in financial fraud and its prevention

A staff report from the House Financial Services Committee characterizes artificial intelligence as both a driver of financial fraud and a critical tool for combating it. The document, released without input from committee Democrats, follows a year-long investigation into financial scams and fraud affecting Americans. It warns that AI has become “one of the most powerful tools in the modern scammer’s arsenal,” enabling criminal organizations to generate highly personalized, culturally calibrated, and grammatically flawless communications at scale, clone voices of loved ones in distress calls, and create convincing deepfake videos to authorize wire transfers.

The report also highlights AI’s potential to strengthen fraud prevention when deployed by public and private sector entities. It notes existing uses by agencies such as the Centers for Medicare and Medicaid Services (CMS), where AI has helped the agency save more than $2 billion by identifying and preventing improper payments. The report emphasizes the need for Congress and federal regulators to better understand the effectiveness of AI tools in fraud detection and to identify regulatory or operational barriers limiting their adoption.

To expand AI’s role in fraud prevention, the report calls for passage of two bipartisan bills: the Bank Fraud Technology Advancement Act and the AI PLAN Act. The Bank Fraud Technology Advancement Act, introduced in May by Rep. Mike Flood (R-Neb.), would direct federal banking agencies to study the use of advanced technologies in fraud detection and prevention, with a focus on community financial institutions. It would also create a community bank fraud technology pilot program to provide access to advanced fraud detection tools. The AI PLAN Act, introduced in March 2025 by Rep. Zach Nunn (R-Iowa), would direct the departments of Homeland Security, Commerce, and Treasury to develop a joint plan for combating nefarious uses of AI, including AI-enabled financial fraud.

Rep. French Hill (R-AR), Chairman of the House Financial Services Committee, stated that as fraudsters become more sophisticated, law enforcement, regulators, and financial institutions must have the tools to stay ahead of evolving threats. The report’s findings are set against a backdrop of broader government efforts to address waste, fraud, and abuse, including a White House anti-fraud task force launched earlier in 2026.