AI-Generated Music Fraud Case Uncovered in North Carolina

Between 2017 and 2024, Michael Smith from North Carolina orchestrated a large-scale music streaming fraud using AI technology. According to Ming Pao, Smith generated hundreds of thousands of songs with AI and managed approximately 1,040 cloud service accounts at the peak of his operation. Each account hosted 20 bots, totaling around 20,800 bot accounts. These bots, disguised as real listeners through VPNs, continuously streamed his AI-generated music around the clock. This scheme resulted in a daily peak of about 660,000 plays, allowing Smith to fraudulently collect over $8 million in royalties from platforms like Spotify and Apple Music. This case is considered the first criminal incident of AI-assisted music streaming fraud in the United States and possibly the world.