North Carolina Musician Charged with Music Streaming Fraud Aided by AI
In a groundbreaking case, Michael Smith, a musician from North Carolina, has been charged with orchestrating a massive music streaming fraud scheme that leveraged artificial intelligence (AI). This case, handled by the U.S. Attorney’s Office for the Southern District of New York, marks the first criminal prosecution involving artificially inflated music streaming numbers.
Smith allegedly generated hundreds of thousands of AI-created songs and used automated programs, commonly known as “bots,” to stream these songs billions of times. This fraudulent activity reportedly earned him over $10 million in royalties, diverting funds from legitimate musicians and songwriters.
The charges against Smith include wire fraud conspiracy, wire fraud, and money laundering conspiracy. If convicted, he faces a potential maximum sentence of 60 years in prison. The FBI and federal prosecutors have emphasized their commitment to tackling such fraudulent activities that exploit advanced technology.
This case highlights the growing concerns within the music industry regarding the misuse of AI and automated systems. It underscores the need for robust measures to protect the integrity of music streaming platforms and ensure fair compensation for artists.
For more details, you can watch the WBTV News report here.
Petra Lugar
Abet News | September 7, 2024
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