🟡Relating to financial exploitation or financial abuse using artificially generated media or phishing communications; providing a civil penalty; creating a criminal offense.

🟡 SB 2373: Cracking Down on AI Fraud

What it says it does:
The bill claims to protect Texans from financial exploitation that uses AI-created content or phishing messages. It sets up a civil lawsuit option and creates a new criminal offense with penalties that rise based on the amount stolen.

What it actually changes:
It gives victims the right to sue and recover damages plus attorney fees. It gives the Attorney General new power to fine wrongdoers up to $1,000 per day. It lets courts shield victim identities and blocks the Texas Supreme Court from limiting that secrecy. It also shields internet platforms, telecom carriers, and broadcasters from being sued for content posted by others.

Who is pushing for it:
AARP Texas, police associations, sheriffs, DA offices in Dallas and Harris counties, Houston and Dallas city governments, and the Texas Association of Broadcasters all registered support.

Who benefits:
Victims of AI fraud get stronger remedies. Law enforcement and prosecutors gain clear criminal charges to use. The Attorney General gains civil penalty and venue power. Platforms and telecom providers gain broad immunity from lawsuits tied to third-party content.

Who gets left out or exposed:
Plaintiffs who hoped to hold large platforms accountable lose that option. Civil liberties advocates see less transparency since victim identity rules override court procedure. Smaller players not covered by the carve-outs may face uneven risks.

Why this matters long term:
The bill sets a precedent for carving out complete immunity for large distributors while expanding state power to enforce penalties. It locks in secrecy rules that reduce court transparency. It shows how new AI fraud laws can both protect victims and shield major industries at the same time.

What to watch next:
Will lawmakers add reporting requirements so Texans can see how many cases are brought and whether restitution is collected. Will immunity rules spread to other tech liability debates. Will courts push back on limits to their procedural authority.

Bottom line:
SB 2373 strengthens tools against AI fraud, but it also gives the Attorney General more centralized power and shields large communications industries from lawsuits, leaving victims to chase scammers directly.

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