A fraud scheme using AI-generated songs and billions of fake streams has revealed how digital platforms can be manipulated to divert millions in royalty payments.
A large-scale fraud scheme using AI-generated music has exposed vulnerabilities in streaming platforms and royalty systems. Billions of fake streams were used to divert payments away from legitimate artists and rights holders.
The scheme ran from 2017 to 2024 and involved uploading hundreds of thousands of AI-generated tracks. Automated programs were then used to stream the songs at scale, inflating play counts and generating revenue.
The operation relied on thousands of bot accounts, bulk email registrations and cloud-based systems. Streaming activity was spread across many tracks to reduce detection and maintain consistent earnings over time.
Michael Smith, a 54-year-old from North Carolina, has pleaded guilty to…
These frauds exploit emotional vulnerability and trust rather than technical weaknesses.
- Romance Scams: Scammers build long-term online relationships with victims, eventually fabricating a “crisis” (medical emergency, legal trouble, or travel costs) that requires the victim to send money.
- Pig Butchering: A hybrid scam where the criminal builds a romantic or platonic relationship to eventually “tutor” the victim in a fraudulent cryptocurrency investment.