Bill 118 Summary

Bill 118 regarding deepfakes in the United States focuses on addressing the malicious use of deepfake technology. DeepFakes traditionally refers to synthetic media where a person in an existing image or video is replaced with someone else's likeness. Relating to finance:

Bill 118 on Deepfakes:

1. Purpose:

   • To criminalize the malicious creation and distribution of deepfakes, particularly when used to deceive or harm individuals.

2. Scope:

   • The bill covers deepfake content that could harm national security, elections, public safety, and individual privacy.

3. Definition:

   • "Deepfake" in this bill refers to any visual or auditory media manipulated to falsely depict someone doing or saying something they did not.

Penalties:

1. Individual Harm:

   • Creating or distributing deepfake content that causes severe reputational damage or emotional distress can result in fines and imprisonment. Specific penalties depend on the severity of harm caused.

2. Elections and Public Office:

   • Producing deepfakes that influence elections or discredit public officials can lead to harsher penalties, including longer imprisonment terms and higher fines.

3. National Security:

   • Deepfakes targeting national security can result in severe federal charges, with long-term imprisonment and substantial fines.

Areas Relating to the Financial Sector:

1. Fraud Prevention and Identity Theft Prevention:

   • The bill recognizes the potential of deepfakes in committing financial fraud, such as identity theft, fraudulent transactions, and manipulating financial markets.

   • The bill outlines measures to counteract the use of deepfakes in identity theft and fraudulent activities, such as impersonating someone for malicious purposes.

2. Enhanced Verification Protocols:

   • Institutions and organizations are required to adopt advanced verification methods to authenticate identities and ensure that individuals are who they claim to be.

3. Institutional Compliance:

   • Financial institutions are required to implement stronger verification processes to detect and prevent the use of deepfake technology in fraudulent activities.

4. Reporting Obligations:

   • Financial entities are obligated to report suspected deepfake-related fraud to federal authorities promptly.

   • Organizations must report instances or attempts of identity fraud involving deepfakes to appropriate federal authorities to facilitate investigation and action.

5. Regulatory Compliance:

   • Entities involved in identity authentication (e.g., financial institutions, government agencies) must comply with regulations mandating the detection and prevention of deepfake utilization in authentication processes.

6. Penalties for Non-Compliance:

   • Financial institutions failing to comply with these regulations could face heavy fines and sanctions ensuring they are proactive in combating deepfake threats.

7. Technological Measures:

   • The legislation encourages the development and deployment of technological solutions to detect deepfake media effectively and prevent unauthorized usage for identity spoofing or fraud.

8. Penalties for Failing Authentication Standards:

   • If organizations fail to implement adequate identity authentication measures to protect against deepfakes, they may face substantial fines and legal consequences.

Bill 118 serves to establish a legal framework to address the intricate challenges posed by deepfake technology, particularly in the realm of identity authentication and authorization. The aim is to protect individuals, organizations, and public trust from the deceptive capabilities of deepfakesand its potential misuse across various sectors, including the financial sector.

Regretfully there are no defined timelines where institutions (public or private sector) are to deploy the above measures or controls.