Musician admits to $10M streaming royalty fraud using AI bots
Recorded: March 20, 2026, 1 p.m.
| Original | Summarized |
Musician admits to $10M streaming royalty fraud using AI bots News Featured Trivy vulnerability scanner breach pushed infostealer via GitHub Actions Microsoft Azure Monitor alerts abused for callback phishing attacks Musician admits to $10M streaming royalty fraud using AI bots FBI links Signal phishing attacks to Russian intelligence services Varonis Atlas: Securing AI and the Data That Powers It Microsoft Exchange Online service change causes email access issues Block ads and trackers on 9 devices for only $16 in this deal FBI warns of Handala hackers using Telegram in malware attacks Tutorials Latest How to access the Dark Web using the Tor Browser How to enable Kernel-mode Hardware-enforced Stack Protection in Windows 11 How to use the Windows Registry Editor How to backup and restore the Windows Registry How to start Windows in Safe Mode How to remove a Trojan, Virus, Worm, or other Malware How to show hidden files in Windows 7 How to see hidden files in Windows Webinars Latest Qualys BrowserCheck STOPDecrypter AuroraDecrypter FilesLockerDecrypter AdwCleaner ComboFix RKill Junkware Removal Tool Deals Categories eLearning IT Certification Courses Gear + Gadgets Security VPNs Popular Best VPNs How to change IP address Access the dark web safely Best VPN for YouTube Forums Virus Removal Guides HomeNewsSecurityMusician admits to $10M streaming royalty fraud using AI bots Musician admits to $10M streaming royalty fraud using AI bots By Sergiu Gatlan March 20, 2026 North Carolina musician Michael Smith has pleaded guilty to collecting over $10 million in royalty payments through a massive streaming royalty fraud scheme on Spotify, Apple Music, Amazon Music, and YouTube Music. Red Report 2026: Why Ransomware Encryption Dropped 38% Related Articles: AI Sergiu Gatlan Previous Article Comments
Mr.Tom - 2 days ago Unfortunately this happens all the time. YouTube is a magnet for fraudsters like this. I've personally seen numerous fake channels with fake comments and most likely fake views. Some of those channels upload about 100 videos a day to boost their illicit profits, sometimes up to $20k/mo per channel. When you have multiple channels raking in that about of money per month, that can fund some crazy lifestyles, crimes, or wars. Post a Comment Community Rules You need to login in order to post a comment Not a member yet? Register Now You may also like: Popular Stories Microsoft: March Windows updates break Teams, OneDrive sign-ins CISA orders feds to patch max-severity Cisco flaw by Sunday Microsoft Azure Monitor alerts abused for callback phishing attacks Sponsor Posts Cyber resilience without the complexity. Join Zero Networks to stop lateral movement fast. Are refund fraud methods targeting your brand? You can monitor the underground for these threats. Overdue a password health-check? Audit your Active Directory for free AI is a data-breach time bomb: Read the new report Secure your AI agents without sacrificing speed. Follow us: Main Sections News Community Forums Useful Resources Welcome Guide Company About BleepingComputer Terms of Use - Privacy Policy - Ethics Statement - Affiliate Disclosure Copyright @ 2003 - 2026 Bleeping Computer® LLC - All Rights Reserved Login Username Password Remember Me Sign in anonymously Sign in with Twitter Not a member yet? Register Now Help us understand the problem. What is going on with this comment? Spam Abusive or Harmful Inappropriate content Strong language Other Read our posting guidelinese to learn what content is prohibited. Submitting... |
Michael Smith, a 54-year-old musician, has been convicted of a federal crime following a scheme involving the fraudulent collection of over $10 million in streaming royalty payments. The operation, conducted between 2017 and 2024, leveraged artificial intelligence (AI) to generate vast quantities of music and subsequently stream these tracks via platforms including Spotify, Apple Music, Amazon Music, and YouTube Music. Smith employed automated AI bots, utilizing virtual private networks (VPNs) to evade detection by anti-fraud systems, and managed over 1,000 bot accounts, each capable of streaming approximately 636 songs daily. The core of the fraud stemmed from Smith’s intention to inflate streaming statistics, as documented in emails exchanged between himself and coconspirators. Specifically, a message from October 4, 2018, directed the team to avoid “any issues with the powers that be” by generating a considerable amount of content with minimal streams, recognizing the existing anti-fraud measures implemented by these streaming services. The operation saw the creation of over 4 billion streams and over $12 million in royalties, according to internal estimates. Prosecutors, led by the U.S. Attorney’s Office, highlighted the distinction between the artificially generated content and the genuine artists and rights holders impacted by Smith’s deception. The scheme was brought to light after investigations confirmed fraudulent listening figures and prompted an email from February 2024 where Smith specified the scope of the operation. Smith was sentenced to a maximum of 5 years imprisonment after pleading guilty to conspiracy to commit wire fraud. The case underscores the growing challenges faced by streaming platforms in combating fraudulent activity, particularly as advancements in AI facilitate the creation of large volumes of synthetic content. The use of AI bots in this manner demonstrates a concerning trend in the music industry, requiring enhanced monitoring and detection strategies to protect legitimate creators. The U.S. Attorney, Jay Clayton, emphasized the tangible impact of Smith’s actions, stating that the stolen royalties were diverted from deserving artists and rights holders. This case highlights the vulnerabilities in the streaming ecosystem and the potential for sophisticated fraud involving AI technologies. |