AI-generated songs used in $10 million streaming fraud

A large-scale fraud scheme using AI-generated music has exposed vulnerabilities in streaming platforms and royalty systems. Billions of fake streams were used to divert payments away from legitimate artists and rights holders.

The scheme ran from 2017 to 2024 and involved uploading hundreds of thousands of AI-generated tracks. Automated programs were then used to stream the songs at scale, inflating play counts and generating revenue.

The operation relied on thousands of bot accounts, bulk email registrations and cloud-based systems. Streaming activity was spread across many tracks to reduce detection and maintain consistent earnings over time.

Michael Smith, a 54-year-old from North Carolina, has pleaded guilty to conspiracy to commit wire fraud in federal court. Prosecutors say he obtained more than $10 million and agreed to forfeit over $8 million in proceeds.

Authorities say the case highlights how AI and automation can be used to manipulate digital platforms. The court will determine the final sentence as concerns grow over similar schemes.

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