Updated
Updated · Ars Technica · Oct 7
Michael Smith Gets 18 Months for AI Streaming Fraud That Drove 80.9 Million Fake Monthly Plays
Updated
Updated · Ars Technica · Oct 7

Michael Smith Gets 18 Months for AI Streaming Fraud That Drove 80.9 Million Fake Monthly Plays

3 articles · Updated · Ars Technica · Oct 7

Summary

  • Michael Smith, 54, was sentenced to 18 months in prison after pleading guilty to an AI-assisted music streaming scheme that the Justice Department said stole millions over seven years.
  • Starting in 2017, Smith used fake emails, fraudulently obtained debit cards and software-controlled bots to create thousands of bogus accounts on Amazon Music, Apple Music, Spotify and YouTube Music.
  • By his 2024 arrest, prosecutors said he had generated hundreds of thousands of AI-made songs and spread billions of automated streams across them to avoid detection.
  • In April 2023 alone, Smith’s tracks logged 80.9 million fraudulent streams, compared with 9.3 million for Taylor Swift’s entire catalog, according to the DOJ.
  • The Justice Department said Smith, first charged in 2024, is the first American criminally charged in an AI-assisted streaming fraud case.

Insights

How did a single fraudster use AI to out-stream Taylor Swift and steal millions from real musicians?
Are your monthly music subscription fees secretly funding sophisticated AI bot farms instead of your favorite artists?
Will the explosion of AI-generated tracks force platforms to completely abandon their traditional royalty payout systems?