ChatGPT-like AI could be used to ‘turbocharge’ fraud, FTC warns US Congress

"We've been putting market participants on notice that instances in which AI tools are effectively being designed to deceive people can place them on the hook for FTC action," said Federal Trade Commission Chair Lina Khan.
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Computer hacker with a hood touches the touch screen binary code.
Computer hacker with a hood touches the touch screen binary code.

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Congress has been forewarned by Federal Trade Commission Chair Lina Khan about the possibility of fraud using AI technology like ChatGPT.

Khan and other FTC commissioners addressed at a Congressional hearing on Tuesday about the organization's efforts to safeguard American consumers against dishonest business practices connected to technological advancements.

"AI presents a whole set of opportunities, but also presents a whole set of risks. And I think we've already seen ways in which it could be used to turbocharge fraud and scams," Khan told the House representatives.

"We've been putting market participants on notice that instances in which AI tools are effectively being designed to deceive people can place them on the hook for FTC action," she said.

To ensure that any difficulties with AI were appropriately addressed and handled, Khan also stated that the agency's technologists were being integrated across the agency's activities.

Rebecca Slaughter, the FTC commissioner, however, brushed down Khan's comments by asserting that the organization has the know-how to adjust to emerging technology and fight fraud driven by AI.

"There's a lot of noise around AI right now, and it's important because it is [a] revolutionary technology in some ways," said Slaughter.

"But our obligation is to do what we've always done — which is apply the tools we have to these changing technologies, make sure that we have the expertise to do that effectively, but to not be scared off by the idea that this is a new revolutionary technology, and dig right in on protecting people," she said.

Office of Technology's emphasis

The Commission officials covered a variety of tech-related subjects throughout the session.

FTC provided information on its efforts to eliminate spam phone calls, alert Opendoor to false claims made about home selling prices, respond to false allegations made by members of the cryptocurrency community members, and safeguard users' private health information gathered by websites and apps.

The FTC also dealt with COPPA violations committed by Fortnite creator Epic Games, reprimanded the online education site Chegg for failing to secure personal data, and fought against dishonest business practices in the gig economy.

The organization also mentioned that it opened a new Office of Technology in February to provide internal technical skills to support its law enforcement and policy activities.

The Office of Technology's emphasis on security and privacy, digital marketplaces, augmented and virtual reality, the gig economy, and ad tracking technology, including automated decision-making or AI, was mentioned in the FTC's testimony.

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