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Freeman [soylentnews.org] writes:

https://arstechnica.com/information-technology/2024/09/fbi-busts-musicians-elaborate-ai-powered-10m-streaming-royalty-heist/ [arstechnica.com]

On Wednesday, federal prosecutors charged a North Carolina musician with defrauding streaming services of $10 million through an elaborate scheme involving AI, as reported by [nytimes.com] The New York Times. Michael Smith, 52, allegedly used AI to create hundreds of thousands of fake songs by nonexistent bands, then streamed them using bots to collect royalties from platforms like Spotify, Apple Music, and Amazon Music.

While the AI-generated element of this story is novel, Smith allegedly broke the law by setting up an elaborate fake listener scheme. The US Attorney for the Southern District of New York, Damian Williams, announced the charges [justice.gov], which include wire fraud and money laundering conspiracy. If convicted, Smith could face up to 20 years in prison for each charge.
[...]
Initially, Smith uploaded his own original compositions to streaming platforms but found that his small catalog failed to generate significant income. In an attempt to scale up, he briefly collaborated with other musicians, reportedly offering to play their songs for royalties, though these efforts failed. This led Smith to pivot to AI-generated music in 2018 when he partnered with an as-yet-unnamed AI music company CEO and a music promoter to create a large library of computer-generated songs. The district attorney announcement [justice.gov] did not specify precisely what method Smith used to generate the songs.
[...]
When confronted by a music distribution company about "multiple reports of streaming abuse" in 2018, The New York Times says that Smith acted shocked and strongly denied any wrongdoing, insisting there was "absolutely no fraud going on whatsoever."

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