Man Faces 20 Years in Prison for First-Ever AI Music Streaming Scam

A North Carolina man has been arrested in the first criminal case involving AI-generated music streaming fraud. Accused of using bots to inflate streams and steal $10 million in royalties, he now faces up to 20 years in prison.

A North Carolina man has been arrested in what is believed to be the first criminal case of its kind—using artificial intelligence (AI) to inflate music streaming numbers and illegally pocket millions in royalties.

Michael Smith, 52, is accused of manipulating streaming platforms to generate billions of fake streams for songs he created using AI, netting over $10 million through this elaborate scheme. Smith now faces charges of wire fraud, conspiracy, and money laundering, all of which could result in significant prison time.

The U.S. Attorney for the Southern District of New York, Damian Williams, announced the indictment against Smith, who allegedly developed software to create fake accounts, or ...