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FBI busts musician’s elaborate AI-powered $10M streaming-royalty heist

FBI busts musician’s elaborate AI-powered $10M streaming-royalty heist

image via Ars Technica

September 5, 2024, 3:02 PM

  • A North Carolina musician has been charged with defrauding streaming services of $10 million through an elaborate scheme involving AI.
  • Michael Smith, 52, allegedly used AI to create hundreds of thousands of fake songs by nonexistent bands, then streamed them using bots to collect royalties from platforms like Spotify, Apple Music, and Amazon Music.
  • Smith's scheme, which prosecutors say ran for seven years, involved creating thousands of fake streaming accounts using purchased email addresses. He developed software to play his AI-generated music on repeat from various computers, mimicking individual listeners from different locations.

North Carolina musician Michael Smith was charged with defrauding streaming services of $10 million through an elaborate scheme involving AI. He allegedly used AI to create hundreds of thousands of fake songs by nonexistent bands, then streamed them using bots to collect royalties from platforms like Spotify, Apple Music, and Amazon Music.

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Entities Mentioned

Michael Smith

Topics Covered

AIBiz & ITAI music generatoraudio synthesisfraudfrosted prickmachine learningmusic synthesisroyaltiesscamschemeStreaming music

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