AI-Generated Music Scam: Man Charged with $10 Million Streaming Royalties Fraud
22 Sources
[1]
Alleged fraudster got $10 million in royalties using robots to stream AI-made music
A North Carolina man is facing fraud charges after allegedly uploading hundreds of thousands of AI-generated songs to streaming services and using bots to play them billions of times. Michael Smith is said to have over $10 million in royalties since 2017 via the scheme. Smith, 52, was arrested on
[2]
Musician charged with $10M streaming royalties fraud using AI and bots
North Carolina musician Michael Smith was indicted for collecting over $10 million in royalty payments from Spotify, Amazon Music, Apple Music, and YouTube Music using AI-generated songs streamed by thousands of bots in a massive streaming fraud scheme. According to court documents, Smith
[3]
Feds Charge AI Music Maker for Faking Streams In $10 Million Scheme - Decrypt
A musician from Cornelius, North Carolina has been charged with wire fraud conspiracy, wire fraud, and money laundering conspiracy in connection to a years-long scheme to manipulate music streaming platforms and pocket over $10 million in royalties with AI-generated songs. From 2017 to 2024,
[4]
US man raked in millions from AI-generated songs played by bots on streaming platforms - SiliconANGLE
US man raked in millions from AI-generated songs played by bots on streaming platforms Federal prosecutors today charged a North Carolina musician who'd taken in around $10 million in royalties from his AI-generated songs that were streamed by the bots he deployed. 52-year-old Michael Smith, a
[5]
Musician accused of stealing $10m in royalties with bots and AI
The FBI claims the musician created hundreds of thousands of AI-generated songs, which were streamed for years by bots to accumulate millions in revenue. The FBI has arrested a US musician for allegedly conducting an elaborate fraud scheme using AI and bots to steal $10m in royalties. The US
[6]
FBI busts musician's elaborate AI-powered $10M streaming royalty heist
Feds say it's the first US criminal case involving artificially inflated music streaming. On Wednesday, federal prosecutors charged a North Carolina musician with defrauding streaming services of $10 million through an elaborate scheme involving AI, as reported by The New York Times. Michael
[7]
A musician siphoned $10 million in royalties after using AI to create hundreds of thousands of songs, streaming them billions of times
NEW YORK (AP) -- A North Carolina musician was arrested and charged Wednesday with using artificial intelligence to create hundreds of thousands of songs that he streamed billions of times to collect over $10 million in royalty payments, authorities in New York said. Michael Smith, 52, of
[8]
Musician Accused Of AI-Assisted Fraud To Collect $10 Million In Royalties
NEW YORK (AP) -- A North Carolina musician was arrested and charged Wednesday with using artificial intelligence to create hundreds of thousands of songs that he streamed billions of times to collect over $10 million in royalty payments, authorities in New York said. Michael Smith, 52, of
[9]
Musician charged with using bots to boost streaming revenue
A musician in the US has been accused of using artificial intelligence (AI) tools and thousands of bots to fraudulently stream songs billions of times in order to claim millions of dollars of royalties. Michael Smith, of North Carolina, has been charged with three counts of wire fraud, wire fraud
[10]
Man with AI song catalog 'defrauds' streaming services of $10 million
The DOJ indicted the alleged scammer after his bot army amassed billions of plays over seven years. Musicians have long criticized streaming services for their abysmal revenue sharing programs. In 2021, for example, as much as 97 percent of Spotify's over 6 million listed artists earned less than
[11]
The bands and fans were fake. The $10 million was real.
A North Carolina man used artificial intelligence to create hundreds of thousands of fake songs by fake bands, then put them on streaming services where they were enjoyed by an audience of fake listeners, prosecutors said. Penny by penny, he collected a very real $10 million, they said when they
[12]
Fraudster charged with $12 million in stolen royalties used 1,000 bots to stream hundreds of thousands of AI tracks billions of times
They say crime doesn't pay. But North Carolina musician Michael Smith allegedly managed to con music streaming services out of $12 million by setting up a 1,000-strong army of bots to stream AI-generated tunes he'd uploaded. At least, he did until the Feds caught up with him and charged Smith with
[13]
The bands and the fans were fake. The $10 million was real.
A North Carolina man used artificial intelligence to create hundreds of thousands of fake songs by fake bands, then put them on streaming services where they were enjoyed by an audience of fake listeners, prosecutors said. Penny by penny, he collected a very real $10 million, they said when they
[14]
How this musician used AI to 'scam' Apple, Amazon and Spotify for $10 million - Times of India
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
[15]
A musician made $10M streaming AI-written songs with fake accounts, prosecutors say
This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. Smith, who is 52, made more than $10 million from his scheme, the indictment said. Officials said it was the first prosecution of its kind. The indictment
[16]
North Carolina musician arrested, accused of Artificial Intelligence-assisted fraud caper
NEW YORK -- A North Carolina musician was arrested and charged Wednesday with using artificial intelligence to create hundreds of thousands of songs that he streamed billions of times to collect over $10 million in royalty payments, authorities in New York said. Michael Smith, 52, of Cornelius,
[17]
North Carolina musician arrested, accused of Artificial Intelligence-assisted fraud caper
NEW YORK (AP) -- A North Carolina musician was arrested and charged Wednesday with using artificial intelligence to create hundreds of thousands of songs that he streamed billions of times to collect over $10 million in royalty payments, authorities in New York said. Michael Smith, 52, of
[18]
North Carolina musician arrested, accused of Artificial Intelligence-assisted fraud caper
NEW YORK (AP) -- A North Carolina musician was arrested and charged Wednesday with using artificial intelligence to create hundreds of thousands of songs that he streamed billions of times to collect over $10 million in royalty payments, authorities in New York said. Michael Smith, 52, of
[19]
North Carolina musician arrested, accused of Artificial Intelligence-assisted fraud caper
NEW YORK (AP) -- A North Carolina musician was arrested and charged Wednesday with using artificial intelligence to create hundreds of thousands of songs that he streamed billions of times to collect over $10 million in royalty payments, authorities in New York said. Michael Smith, 52, of
[20]
North Carolina Musician Arrested, Accused of Artificial Intelligence-Assisted Fraud Caper
NEW YORK (AP) -- A North Carolina musician was arrested and charged Wednesday with using artificial intelligence to create hundreds of thousands of songs that he streamed billions of times to collect over $10 million in royalty payments, authorities in New York said. Michael Smith, 52, of
[21]
AI tools, fake songs, and $10M fraud: US musician indicted for royalty scam
A musician from the United States allegedly exploited artificial intelligence (AI) tools to generate fake songs and stream them on platforms like Spotify, Apple Music, and Amazon Music. The musician and his accomplices amassed $10 million in royalties by inflating listens through the use of bots.
[22]
AI Beats the System: Producer Allegedly Pockets $10 Million in Fake Royalties
According to court papers, 52-year-old music producer Michael Smith adopted AI to make hundreds of thousands of songs and automated streaming processes. The move was all to bypass fraud-detecting systems on Spotify, Amazon Music, and Apple Music. He allegedly used that to create several thousand
Share
Copy Link
A North Carolina man has been charged with fraud for allegedly using AI-generated music and bots to manipulate streaming platforms, earning millions in royalties. This case highlights the growing concerns around AI's impact on the music industry and streaming fraud.
The Alleged Scam
Michael Smith, a 52 year old man from North Carolina, has been charged with wire fraud and money laundering in connection with an elaborate scheme involving AI-generated music and streaming bots. Smith allegedly manipulated music streaming platforms to generate over $10 million in fraudulent royalty payments between 2019 and 2023
1
.The Mechanics of the Fraud
According to the U.S. Department of Justice, Smith's operation involved creating thousands of artificial songs using AI technology. These tracks, devoid of actual lyrics or human vocals, were then uploaded to various music streaming services. To generate plays and subsequent royalties, Smith allegedly employed a network of bots – automated programs designed to mimic human user behavior
2
.Scale and Sophistication
The scale of the operation was significant, with prosecutors alleging that Smith controlled more than 8,000 streaming accounts across multiple platforms. These accounts were programmed to play the AI-generated tracks on repeat, artificially inflating play counts and triggering royalty payments
3
.Financial Impact and Money Laundering
The scheme reportedly netted Teran over $10 million in fraudulent royalties. To conceal the source of these funds, he allegedly engaged in money laundering activities, including the purchase of real estate properties
4
.Industry Implications
This case has raised significant concerns within the music industry about the potential for AI and automation to manipulate streaming platforms. It highlights the challenges faced by streaming services in detecting and preventing such fraudulent activities, especially as AI technology becomes more sophisticated
5
.Related Stories
Legal Consequences
If convicted, Smith faces a maximum penalty of 20 years in federal prison for each count of wire fraud and money laundering. The case is being prosecuted by the U.S. Attorney's Office for the Middle District of Florida
2
.Broader Context
This incident is part of a growing trend of streaming fraud cases, where individuals exploit the complexities of digital platforms for financial gain. It also raises questions about the future of music creation and distribution in an era of advancing AI technology, prompting discussions about the need for more robust verification and monitoring systems in the streaming industry
1
.References
Summarized by
Navi
[2]
[4]
[5]
Related Stories
Recent Highlights
1
OpenAI Pauses AI Model Training After Agent Hacks Australian Government Website
Technology
2
Bill Gates Warns AI Could Cause a Billion Deaths, Calls for Urgent Federal Regulation
Policy and Regulation
3
Meta Unveils Camera-Free AI Glasses and Muse Integration Amid Privacy Debate at Connect 2026
Technology
Recent Highlights
Today's Top Stories
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Follow topics that matter to you and stay ahead.
