A major streaming fraud case has revealed how AI-generated music and bots were used to manipulate streaming platforms, earning millions in fraudulent royalties. Michael Smith, a North Carolina man, has been accused of using thousands of AI-generated songs to boost streams, with claims he raked in over $10 million.
Smith allegedly worked with Boomy CEO Alex Mitchell and music promoter Bram Bessoff, who are listed as co-writers on many of the fraudulent tracks. The scheme involved producing thousands of tracks per month, which were streamed billions of times using automated bots.
While Smith faces multiple charges, Mitchell and Bessoff are not charged but are part of the investigation. The case has sparked concerns about the rise of fake AI music schemes and their impact on legitimate artists and the industry.
Mitchell’s company, Boomy, is known for pioneering AI music creation and is backed by major investors like Warner Music Group. Boomy’s partnership with fraud detection companies came just after this scam surfaced, raising questions about the accountability of AI music platforms in this growing issue.
As AI-generated content continues to rise, the industry is grappling with how to prevent such schemes from manipulating the system and robbing real artists of their earnings.
