Faker’s Ball: North Carolina Man Arrested for AI-Driven Fake Music Scam
A man from North Carolina has been arrested for allegedly orchestrating an elaborate music streaming scam. Authorities believe he used artificial intelligence (AI) to create fake bands and songs, generating millions in fraudulent revenue. The accused reportedly inflated streaming numbers using bots to increase royalties illegally.
Alleged Scam Spans Seven Years
The US Department of Justice (DOJ) announced the arrest of 52-year-old Michael Smith from North Carolina. He has been charged with money laundering and wire fraud in connection to a seven-year scheme. Smith allegedly exploited his real-life music expertise to create fake songs, earning over $10 million in royalties. If convicted, he could face up to 20 years in prison for each of the three charges.
Investigators claim Smith worked with two unnamed accomplices—a music promoter and the CEO of an AI music firm. Together, they allegedly produced “hundreds of thousands of songs” and used automation to artificially boost streams on major platforms like Spotify, YouTube Music, and Apple Music. According to the indictment, Smith sought to bypass anti-fraud measures by rapidly generating content.
AI-Generated Music Flooded Streaming Platforms
The CEO of the AI music firm reportedly provided Smith with thousands of songs each week. These songs, described as low-quality “instant music,” were assigned random file names like “n_7a2b2d74-1621-4385-895d-b1e4af78d860.mp3.” Smith would rename them with more marketable titles such as “Zygotes” and “Calypso Xored” before uploading them to streaming platforms.
Fake artists were also created with names ranging from the mundane, like “Calvin Mann,” to bizarre choices such as “Calorie Event” and “Calms Scorching.” Smith allegedly used bots to stream these fake songs billions of times, converting the inflated numbers into royalty payments.
Denial Amidst Strong Evidence
Despite the overwhelming evidence presented by the DOJ, Smith has denied the allegations. In a statement to the New York Times, he claimed, “This is absolutely wrong and crazy! There is absolutely no fraud going on whatsoever! How can I appeal this?”
The case highlights the vulnerability of the music industry to AI-driven scams and the challenge of combating fraud in streaming platforms.
