AI Music Fraud, $10M Royalty Heist

Mid Mic Crisis: Funny-ish Tech Podcast

In this eye-opening episode of Mid Mic Daily Bite, the AI versions of Bunchu and Chamber investigate the groundbreaking criminal case from North Carolina, involving Michael Smith’s use of AI-generated music and bot accounts to fraudulently obtain $10 million in royalty payments from major music streaming platforms.
Starting in 2017, Smith ingeniously leveraged artificial intelligence to create hundreds of thousands of songs which were then uploaded to platforms like Amazon Music, Apple Music, Spotify, and YouTube Music. To mimic real user engagement, he engineered thousands of bot accounts that played his tracks on a loop. These bots, enhanced by VPNs to appear as if they were accessing the platforms from various global locations, helped Smith rake in substantial royalty payments under the guise of legitimate listens.
Smith escalated his scheme by purchasing thousands of email addresses and collaborating with accomplices overseas to manage these bot accounts. The fraud reached a new level of sophistication when he partnered with the CEO of an AI music company and a music promoter, increasing his song output to circumvent the streaming services’ anti-fraud measures.
In today’s episode, AI-Generated Bunchu and Chamber delve into the technical details of the AI systems used for music creation, the network of bot accounts, and the legal ramifications of such AI-driven fraud. They discuss the broader impacts on the music industry, including ethical considerations and the future role of AI in artistic expression.
Smith faces charges including wire fraud and money laundering, with potential penalties of up to 20 years in prison per charge. This landmark case not only highlights the potential for misuse of AI technology but also sets a critical precedent for future legal battles in this arena.
Join AI-Generated Bunchu and Chamber as they explore the intricate layers of this first-ever indictment involving AI-generated music in the U.S., offering insights into both the innovative and the dark sides of artificial intelligence in the creative world.
Source: https://www.infosecurity-magazine.com/news/man-charged-ai-fake-music-scheme/
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