North Carolina Musician Charged in AI Fraud Scheme

Michael Smith, a musician from Cornelius, North Carolina, has been indicted for allegedly orchestrating a fraud scheme that involved creating hundreds of thousands of AI-generated songs and using automated bots to stream them billions of times, resulting in over $10 million in illicit royalty payments. From 2017 to the present, Smith is accused of setting up thousands of fake accounts on major music streaming platforms, which enabled him to generate approximately 661,440 streams per day, yielding about $1.2 million annually. The fraudulent activity not only benefited Smith but also deprived legitimate musicians and songwriters of their rightful earnings. Smith faces multiple charges, including wire fraud and conspiracy, with potential penalties totaling up to 60 years in prison. The case highlights concerns within the music industry about the exploitation of technology to manipulate streaming royalties. Authorities are committed to addressing such fraudulent practices to protect the integrity of artistic work.