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Feds Indict Musician on Landmark Massive Streaming Fraud Charges

A North Carolina musician was indicted over claims that he used bots and AI-generated songs to fraudulently earn millions in streaming royalties.

Federal investigators have indicted a North Carolina man over a scheme in which he allegedly used bot accounts and hundreds of thousands of AI-generated songs to earn more than $10 million in royalty payments from the major streaming services. “Through his brazen fraud scheme, Smith stole millions in royalties that should have been paid to musicians, songwriters, and other rights holders whose songs were legitimately streamed,” said Damian Williams, U.S. Attorney for the Southern District of New York. The major labels have voiced concerns on both topics for the same reason — that streaming fraud dilutes the royalty pool and takes away revenue from the actual artists driving real music listening, while AI songs made at the click of a button can exacerbate those problems.

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