Delaware House Approves Stricter Penalties for AI‑Driven Impersonation Fraud and Mandates Chatbot Disclosure

The Delaware House approved two measures on May 6, 2026 that target emerging threats from artificial intelligence. House Bill 326 creates a specific felony for theft that uses AI‑generated voices or messages to pose as a victim’s family member. House Bill 306 expands the state’s definition of artificial intelligence and obligates companies to inform consumers when they are interacting with a chatbot, avatar, or other non‑human agent.

Rep. Eric Morrison, who sponsored HB 326, warned that scammers who mimic relatives achieve higher success rates because victims are predisposed to help family in distress. The bill defines the crime as taking property while using any communication presented as coming from an immediate family member, regardless of the medium. Penalties range from class B to class F felonies, depending on the loss amount, and sentencing discretion remains with the courts.

The urgency behind the legislation reflects a surge in AI‑related fraud. The FBI’s 2025 Internet Crime Report logged more than 22,000 incidents involving AI tools and nearly $893 million in losses. Deep‑fake audio and video allow fraudsters to convincingly impersonate loved ones, pressuring victims into rapid transfers.

HB 306, backed by Rep. Cyndie Romer and Sen. Bryan Townsend, tightens consumer‑protection language in the Delaware Code. It formally defines “chatbot” and “avatar” and declares deceptive computer communication an unlawful practice. Businesses that fail to provide a clear, conspicuous notice that a consumer is dealing with a non‑human agent expose themselves to private lawsuits. Plaintiffs may recover actual damages plus up to $1,000 in statutory damages per violation, and class‑action awards could reach $10 million.

The combined effect of the bills is twofold: harsher deterrence for AI‑enabled impersonation scams and greater transparency for everyday digital interactions. Legal experts note that the private right of action in HB 306 could prompt companies to audit their customer‑service platforms for compliance, while prosecutors may use the new felony classification to pursue more severe sentences in high‑value theft cases.

If the Senate passes the measures, Delaware will join a growing list of states tightening AI governance. Watch for the Senate’s vote and potential amendments that could further shape enforcement mechanisms and consumer rights in the digital age.