Musician convicted of streaming fraud

Michael Smith, a 54-year-old American musician from North Carolina, was sentenced to 18 months in prison for defrauding music streaming platforms by artificially inflating the number of times his tracks were played.

Automated accounts and AI-generated content

Between 2017 and 2024, Smith used thousands of automated accounts to listen to his own music on platforms like Spotify, Apple Music, and YouTube Music. He employed artificial intelligence to distribute this fake activity across hundreds of thousands of tracks, generating royalties that should have gone to other artists.

Creating fake identities and hiding activity

Smith created fake email addresses and used stolen bank card data to set up thousands of accounts. He used software to play his tracks continuously and hid the activity using virtual private networks. At times, up to 10,000 automated accounts operated at once, dispersing plays across many songs to avoid detection.

Financial calculations and fraud scale

In 2017, Smith estimated his system could generate nearly 1 million euros annually from the fraud. By 2024, he claimed to have exceeded four billion plays and earned 12 million dollars in royalties since 2019. The U.S. Department of Justice confirmed over 8 million dollars in fraudulent gains, which will be confiscated as part of his sentence.

Impact on artists and legal defense

The fraud affected other musicians and rights holders, as the fabricated listens redirected funds away from real listeners. Smith’s defense requested probation, arguing he had not kept all the money and expressed regret. His lawyers also mentioned a job in audio production that would be delayed by incarceration.

Sentence and aftermath

Smith pleaded guilty to conspiracy to commit electronic fraud and will serve 18 months in prison, followed by two years of supervision. The case highlights how digital fraud can distort compensation systems for artists.