North Carolina Man Charged with Streaming Fraud

Michael Smith, a 52-year-old musician from North Carolina, has been charged with defrauding music streaming services of over $10 million by using AI to create and artificially inflate streams of his music. The U.S. Attorney’s Office filed charges that include wire fraud and conspiracy to commit money laundering, marking this case as the first criminal prosecution involving AI-generated music fraud. Smith allegedly created hundreds of thousands of songs and employed automated bots to generate billions of fake streams on platforms like Spotify, Apple Music, and YouTube Music from 2017 to 2024. This scheme not only highlights vulnerabilities in the streaming industry but also raises concerns about the integrity of music royalties, as it deprived genuine artists of rightful earnings. If convicted, Smith faces significant prison time and restitution to victims. The case underscores the challenges posed by advanced technology in the digital music landscape.