Summary
A man from North Carolina admitted in court to using artificial intelligence (AI) to create fake songs and artificially boost their popularity on music streaming platforms. This scheme allowed him to collect over $8 million in fraudulent music-streaming royalties. He faces a possible five-year prison sentence after pleading guilty to conspiracy to commit wire fraud.
Key Facts
- Michael Smith, 54, generated fake songs using AI and boosted their streaming numbers illegally.
- He used software to make bot accounts on platforms like Spotify and Apple Music to play these songs repeatedly.
- The fake activity diverted over $8 million in royalties meant for real artists.
- Smith admitted to his crimes and agreed to forfeit over $8 million.
- The FBI and the U.S. Attorney’s Office for the Southern District of New York led the investigation.
- Smith could be sentenced to up to five years in prison.
- The misuse of AI for fraud in digital payment systems is a growing concern.
