FTC Warns ‍AI ⁢tools Could “Turbocharge” Fraud and scams

⁣ Updated June 11, 2025
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Federal Trade commission members told House lawmakers Tuesday that artificial intelligence, including tools like chatgpt, could ⁣significantly ‍increase consumer fraud and scams. Despite debates over specific AI regulations, the FTC believes it already possesses significant authority to combat AI-driven consumer harms.

FTC Chair Lina Khan expressed concern about the potential for AI to “turbocharge” deceptive⁢ practices. New‍ AI tools can generate convincing text,audio,and video,raising concerns about impersonation and misuse. Policymakers are grappling with algorithmic discrimination ⁣and privacy issues, but the FTC maintains that existing statutes allow for immediate investigations.

Commissioner Rebecca Slaughter emphasized the FTC’s history of adapting to technological changes. She stated the agency’s obligation is⁤ to apply current tools to evolving technologies ⁤and not ⁤be ⁤intimidated by the revolutionary nature of AI.

“Throughout the FTC’s history we have had to adapt our enforcement to changing technology,” said FTC Commissioners Rebecca Slaughter. “Our obligation is to⁤ do what we’ve always done, which is to apply the tools we have to these changing technologies ⁤… [and] not be scared off by this idea that this is a new, revolutionary technology.”

Commissioner‍ Alvaro Bedoya added that ⁣companies cannot avoid liability by claiming their‍ algorithms are a “black box.” ⁣He affirmed that existing unfair and deceptive practices ⁤authority, civil rights laws, and fair credit regulations apply to AI.

“Our staff has been consistently saying our ⁣unfair and deceptive practices authority applies,our ‍civil rights laws,fair credit,Equal Credit Opportunity Act,those⁣ apply,” said Bedoya. “There is law, and companies will need to abide by it.”

The FTC has previously provided guidance to AI companies and recently⁢ received a request to investigate OpenAI regarding ChatGPT’s capabilities and limitations.

What’s next

The FTC is expected to continue monitoring and regulating artificial intelligence to protect⁢ consumers from potential fraud and deceptive practices, utilizing its existing legal authority to address emerging challenges.