Michael Smith, a North Carolina man, faces multiple charges related to a scheme involving streaming bots and AI-generated songs that allegedly earned him over $10 million in fraudulent royalties.
Federal authorities have indicted a North Carolina man named Michael Smith on charges of wire fraud conspiracy, wire fraud, and money laundering conspiracy. Smith allegedly defrauded streaming platforms by setting up thousands of automated "bot accounts" and using AI technology to generate fake songs to earn royalties.
According to the U.S. Attorney's Office for the Southern District of New York, Smith orchestrated a scheme to fraudulently generate streaming royalties by creating numerous bot accounts on popular music platforms such as Amazon Music, Apple Music, Spotify, and YouTube Music. These accounts were programmed to continuously stream songs owned by Smith, resulting in royalties that he pocketed.
North Carolina Man Accused of Fraudulently Earning Streaming Royalties with AI-Generated Songs and Bots
To obtain a sufficient number of songs for his scheme, Smith allegedly turned to artificial intelligence. He obtained AI-generated songs from an AI music company CEO and a music promoter, and he randomly generated song and artist names to give the impression that the songs were created by actual musicians.
The indictment alleges that Smith raked in over $10 million in royalties from the fraudulent streaming of his AI-generated songs billions of times through his bot accounts. Authorities claim that Smith made multiple misrepresentations to the streaming platforms in connection with his scheme.
North Carolina Man Accused of Fraudulently Earning Streaming Royalties with AI-Generated Songs and Bots
The FBI Acting Director, Christie Curtis, condemned Smith's alleged actions, stating that the scheme compromised the integrity of the music industry by attempting to circumvent the streaming platforms' policies. Each of the charges against Smith carries a potential penalty of up to 20 years in prison.
The indictment emphasizes that the charges are merely accusations and that Smith is presumed innocent until proven guilty. The case is scheduled for a status conference on October 6, 2022.
North Carolina Man Accused of Fraudulently Earning Streaming Royalties with AI-Generated Songs and Bots
The allegations against Smith highlight the potential risks associated with the use of AI in streaming platforms. AI-generated songs and bot accounts can be exploited to manipulate the system and earn fraudulent profits. This case also underscores the importance of strong anti-fraud measures by streaming platforms to maintain the integrity of their ecosystems.
