North Carolina Musician Accused of $10M Streaming Fraud with AI-Generated Songs

Michael Smith, a musician from North Carolina, has been indicted for allegedly orchestrating a $10 million streaming fraud scheme using AI-generated songs. Federal prosecutors charged him with multiple counts, including wire fraud and money laundering, claiming he created hundreds of thousands of songs to exploit streaming royalty payments since 2017. Smith reportedly collaborated with the CEO of an unnamed AI music company and other co-conspirators to execute the scheme. The indictment details how Smith set up thousands of fake accounts on platforms like Spotify and Apple Music, using these accounts to generate fraudulent streams of his AI-generated music. He allegedly misled streaming services and collection societies to conceal his activities, diverting over $1 million annually from legitimate songwriters and artists. The indictment also highlights Smith's use of cloud services to continuously stream his songs and his efforts to evade detection through various deceptive practices. The case underscores growing concerns in the music industry regarding the potential for AI-generated content to facilitate fraud, as it allows individuals to create vast amounts of music that can compete with genuine works. The FBI and the Mechanical Licensing Collective have emphasized the importance of combating such fraudulent activities to protect the integrity of the music industry.

- Michael Smith is accused of a $10 million streaming fraud using AI-generated songs.

- He allegedly created hundreds of thousands of songs to exploit streaming royalties.

- Smith set up thousands of fake accounts on major streaming platforms to generate fraudulent streams.

- The indictment highlights concerns about AI's role in facilitating music streaming fraud.

- The case reflects ongoing efforts by authorities to combat fraud in the music industry.