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Streaming Fraud

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North Carolina man gets 18 months for AI music streaming fraud scheme

Michael Smith, 54, has been sentenced to 18 months in prison and ordered to forfeit $8 million after pleading guilty to wire fraud conspiracy. Prosecutors say he created up to 10,000 fake accounts to stream hundreds of thousands of AI-generated songs billions of times between 2017 and his 2024 arrest, spreading plays across many tracks to avoid detection. In one example cited by the Justice Department, his bots generated 80.9 million fraudulent family-plan streams in April 2023, compared with 9.3 million for Taylor Swift's entire catalogue that month.

North Carolina man gets 18 months for AI music streaming fraud scheme

Michael Smith, 54, was sentenced to 18 months in prison after pleading guilty to running a seven-year scheme that used AI-generated songs and bot accounts to defraud streaming platforms. The Justice Department said Smith created thousands of fake accounts on services like Spotify and Apple Music using stolen identities and fraudulent debit cards, then used automation to stream hundreds of thousands of AI-generated tracks billions of times. In one month alone, April 2023, his fake songs reportedly generated 80.9 million streams, more than Taylor Swift's entire catalog during the same period.

North Carolina man gets 18 months for $10 million AI streaming royalty fraud

Michael Smith, 54, was sentenced to 18 months in prison after pleading guilty to running a scheme that used AI-generated songs and thousands of bot accounts to fraudulently generate billions of streams on Spotify, Apple Music, Amazon Music and YouTube Music between 2017 and 2024. Court documents say Smith worked with an AI music company's CEO and a music promoter, routing bot traffic through VPNs to dodge anti-fraud detection, and collected more than $10 million in royalties.

IFPI Launches Streaming Integrity Initiative to Curb AI-Driven Music Fraud

The International Federation of the Phonographic Industry has introduced the Streaming Integrity Initiative, a set of five commitments aimed at reducing fraudulent streaming activity. Sony Music Group, Universal Music Group and Merlin are among the first distributors to back the effort, which focuses on verifying identities, vetting content, detecting bad actors and sharing intelligence across platforms. IFPI is now calling on additional distributors to join the initiative.