Man Charged With $10 Million Streaming Scam Using AI-Generated Songs

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Man Charged With $10 Million Streaming Scam Using AI-Generated Songs
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Journalist Leslie Katz, a Forbes contributor since October 2023, covers science and consumer technology, often focusing on how they overlap with art and creativity.

In a scheme federal authorities are labeling “brazen fraud,” a North Carolina man allegedly used artificial intelligence to create hundreds of thousands of songs, then continuously streamed them using bot accounts to generate unlawful royalty payments totaling more than $10 million.

“The defendant’s alleged scheme played upon the integrity of the music industry by a concerted attempt to circumvent the streaming platforms’ policies,” FBI Acting Assistant Director Christie M. Curtis said in a statement jointly released by the FBI and the United States Attorney for the Southern District of New York.

“We need to get a TON of songs fast to make this work around the anti-fraud policies these guys are all using now,” Smith emailed two unnamed co-conspirators, according to the indictment. That’s apparently so he wouldn’t call attention to his maneuvers by streaming the same song too many times.

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