Streaming Services Targeted by AI-Fueled Fraud: The Shocking Case of a Musician

Streaming Services and AI Fraud: A Shocking Revelation

A US musician has reportedly used artificial intelligence (AI) tools to create fake songs, streamed them on services like Spotify, Apple Music, and Amazon Music through fake listeners and collected $10 million in royalties. He has now been indicted on federal charges of defrauding the streaming services.

How Streaming Services Fell Victim

According to a report in The New York Times, 52-year old Michael Smith used AI to create hundreds of thousands of fake songs under fictitious band names. He then employed bots to artificially inflate the play counts of these AI-generated tracks, raking in royalties over a seven-year period. The report reveals artist names such as Callous Post, Calorie Screams, and Calvinistic Dust with song titles like Zygotic Washstands and Zymotechnical being top performers on the three streaming services.

Legal Fallout and Industry Impact

As many as 10,000 fake profiles were established with the help of co-conspirators. Smith reportedly spread the streams across many songs to avoid unusual spikes in listenership. These fabricated creations managed to climb the charts on major streaming platforms, diverting royalties that should have gone to legitimate artists. A US attorney condemned Smith's actions, emphasising the harm caused to genuine musicians and songwriters who were robbed of their rightful earnings.

• Smith faces charges of wire fraud and money laundering conspiracy, each carrying a maximum penalty of 20 years in prison.
• He was arrested on Wednesday.
• Smith claimed that the allegations are unfounded, stating: This is absolutely wrong and crazy! … There is absolutely no fraud going on whatsoever!

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