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Streaming Fraud

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First US Streaming Fraud Conviction: Michael Smith Sentenced to 18 Months for AI Bot Scheme
technology-and-law12 days ago

First US Streaming Fraud Conviction: Michael Smith Sentenced to 18 Months for AI Bot Scheme

Michael Smith, a 54-year-old North Carolina musician, was sentenced to 18 months in federal prison and ordered to forfeit $8.1 million for the first-ever US prosecution of music streaming fraud. From 2017 to 2024, Smith used AI-generated songs and thousands of bot accounts to generate billions of fake streams, siphoning royalties from legitimate artists. The case prompted the US Copyright Office to launch a formal inquiry into AI-driven streaming fraud, with public comments due in November 2026.

via The Quietus|
#ai-music#copyright-office#michael-smith
First AI Streaming Fraud Conviction: North Carolina Man Sentenced to 18 Months for $8M Royalty Theft
technology-and-law13 days ago

First AI Streaming Fraud Conviction: North Carolina Man Sentenced to 18 Months for $8M Royalty Theft

Michael Smith, a 54-year-old North Carolina resident, was sentenced to 18 months in federal prison for the first criminal conviction involving AI-assisted music streaming fraud. Between 2017 and 2024, Smith used thousands of bots and AI-generated songs to artificially inflate streams on platforms like Spotify and Apple Music, stealing approximately $8 million in royalties. The US Department of Justice highlighted the case as a landmark effort to deter fraud that dilutes earnings for genuine artists. While prosecutors sought a longer sentence, the judge imposed 18 months plus two years of supervised release, with Smith required to forfeit the illicit proceeds.

via Ars Technica|
#ai-music#doj#michael-smith
Michael Smith Sentenced to 18 Months for AI Streaming Fraud
legal-and-technology13 days ago

Michael Smith Sentenced to 18 Months for AI Streaming Fraud

Michael Smith, a 54-year-old North Carolina musician, was sentenced to 18 months in federal prison on October 6, 2026, for the first-ever criminal conviction involving AI-assisted streaming fraud. Smith pleaded guilty in March to wire fraud conspiracy after admitting he used bots to generate billions of fake streams for AI-generated songs between 2017 and 2024, collecting over $8 million in royalties. Judge John G. Koeltl in Manhattan rejected the defense’s request for probation and the prosecution’s demand for 46 months, ordering Smith to serve a year and a half in jail followed by two years of supervised release. He must also forfeit $8,091,843.64. The case highlights the growing threat of automated bots inflating play counts on platforms like Spotify and Apple Music, diverting funds from legitimate artists.

via Pitchfork|
#ai-music#doj#legal-and-technology
Judge Sentences AI Music Fraudster to 18 Months in Landmark Ruling
legal-and-music-industry13 days ago

Judge Sentences AI Music Fraudster to 18 Months in Landmark Ruling

Michael Smith, a 54-year-old musician from North Carolina, was sentenced to 18 months in federal prison on October 6, 2026, for the first-ever criminal conviction involving AI-assisted streaming fraud. Smith pleaded guilty in March to wire fraud conspiracy after admitting he used bots to generate billions of fake streams for AI-generated songs between 2017 and 2024, collecting over $8 million in royalties. Judge John G. Koeltl in Manhattan rejected the defense’s request for probation and the prosecution’s demand for 46 months, ordering Smith to serve a year and a half in jail followed by two years of supervised release. He must also forfeit $8,091,843.64. The case highlights the growing threat of automated bots inflating play counts on platforms like Spotify and Apple Music, diverting funds from legitimate artists.

via Billboard|
#ai-music#federal-sentencing#legal-and-music-industry
Judge Sentences First Music Streaming Fraud Convict to 18 Months
legal13 days ago

Judge Sentences First Music Streaming Fraud Convict to 18 Months

Michael Smith, the first individual federally charged for music streaming fraud, was sentenced to 18 months in prison on October 6, 2026. Smith, a North Carolina musician, pleaded guilty in March to conspiracy to commit wire fraud after using bots and AI-generated songs to generate over $8 million in fake royalties between 2017 and 2024. Judge John G. Koeltl imposed the sentence, which is significantly lower than the 46 months sought by prosecutors but higher than the probation requested by Smith’s defense. Smith must also forfeit $8.09 million. The case highlights the growing threat of AI-assisted fraud in the music industry, though industry groups argue structural reforms are needed beyond individual prosecutions.

via Rolling Stone|
#ai-music#federal-sentencing#legal
Major Labels and Distributors Pledge to Combat AI-Driven Streaming Fraud
business1 month ago

Major Labels and Distributors Pledge to Combat AI-Driven Streaming Fraud

The International Federation of the Phonographic Industry (IFPI) has launched the 'Streaming Integrity Initiative' (SII) to combat fraudulent streaming practices, particularly those involving AI-generated music. Supported by major labels and distributors, the initiative establishes baseline standards for verifying rights, vetting content, and sharing intelligence to protect artist royalties. Industry estimates suggest nearly 10% of streams are fraudulent, with AI tools enabling mass production of fake tracks to siphon revenue from legitimate creators.

via Billboard|
#ai-music#business#ifpi
Kalshi Alert Sparks Spotify Fraud Scrub of Malcolm Todd Streams
music3 months ago

Kalshi Alert Sparks Spotify Fraud Scrub of Malcolm Todd Streams

Spotify confirmed fraud after a Kalshi trader flagged suspicious streaming data for Malcolm Todd's single “Earrings,” removing over 500,000 streams and dropping the track from #1 to #4 on the Global Daily chart. Kalshi had paid out bets based on the flawed data, while Spotify said it detects and mitigates manipulated streams and does not pay royalties; both Spotify and Kalshi are reviewing the matter to understand chart integrity and betting implications.

via Stereogum|
#earrings#kalshi#malcolm-todd
Spotify Finds Fake Streams, Forcing Market Updates and a Trader’s Exit
technology3 months ago

Spotify Finds Fake Streams, Forcing Market Updates and a Trader’s Exit

Spotify confirmed artificial streaming after a Kalshi trader flagged botting in Spotify-related markets; the company culled over 500,000 fake streams and adjusted its charts, moving Malcolm Todd’s song from #1 to #4. Kalshi then removed Spotify branding from related markets and said it’s coordinating with Spotify and Polymarket as investigations continue; Polymarket says it has not identified any immediate manipulation. The episode underscores vulnerabilities in chart-based prediction markets, prompting trader Caleb Davies to swear off such markets for now.

via WIRED|
#kalshi#polymarket#prediction-markets
Bot Streams and AI Tracks Drive a $10 Million Music Scam
business9 months ago

Bot Streams and AI Tracks Drive a $10 Million Music Scam

Rolling Stone recounts how Mike Smith allegedly ran a multi-year streaming-fraud scheme, using thousands of bot accounts to inflate plays and deploying AI-generated songs to boost royalties, ultimately courts charging him with more than $10 million in illicit earnings; the saga intertwined with SMH Records, a BET reality show, and a broader scrutiny of how streaming royalties and chart rankings can be gamed, underscoring vulnerabilities in the digital music economy.

via Rolling Stone|
#ai-generated-music#billboard-charts#business
music-industry11 months ago

Class-Action Lawsuit Claims Drake's Streaming Earnings Were Fraudulent

A class action lawsuit accuses Spotify of enabling massive streaming fraud, with Drake allegedly benefiting from billions of inauthentic streams, which could have cost other artists hundreds of millions of dollars. The suit claims Spotify's inadequate anti-fraud measures and highlights alleged manipulations such as VPN usage to inflate stream counts, though Drake is not directly accused of wrongdoing. Spotify denies benefiting from fraud and states it invests heavily in combating artificial streaming.

via The Hollywood Reporter|
#artificial-streams#class-action-lawsuit#drake
Spotify sued over alleged inflated Drake streams by bots
business11 months ago

Spotify sued over alleged inflated Drake streams by bots

Rapper RBX has filed a class action lawsuit against Spotify, accusing the streaming platform of allowing fraudulent streams, primarily benefiting Drake, which has caused financial harm to legitimate artists and rightsholders. The lawsuit claims billions of fake streams inflated Drake's popularity, impacting royalty distributions, although Spotify denies benefiting from such fraud and states it actively combats artificial streaming. The case highlights ongoing concerns about streaming platform practices and artist compensation.

via NBC News|
#artistic-royalties#business#drake
business11 months ago

Spotify Sued Over Alleged Fraudulent Drake Streams

A class action lawsuit alleges Spotify has ignored widespread fraudulent streaming, particularly involving billions of fake streams of Drake's music, generated by bot accounts using VPNs and other methods, which harms legitimate artists and benefits Spotify's advertising revenue. The lawsuit focuses on irregular streaming patterns and geographic anomalies in Drake's streams, raising concerns about the integrity of streaming metrics and artist compensation.

via Rolling Stone|
#bot-accounts#business#drake
music-industry1 year ago

Drake Escalates Legal Battle Over Kendrick Lamar's 'Not Like Us'

Drake has filed a lawsuit against Universal Music Group and Spotify, alleging they conspired to inflate the streaming numbers of Kendrick Lamar's track "Not Like Us" through questionable promotional tactics. The claims include reduced royalty rates for increased song recommendations, undisclosed influencer campaigns, and the use of bots to boost streams. While UMG denies these allegations, the evidence presented by Drake's team appears to be based on outdated information and lacks concrete proof, raising questions about the validity of the accusations.

via Billboard|
#drake#kendrick-lamar#music-industry