Musician Arrested for Using AI Songs and a Bot Army to Scam Spotify for Millions in Royalties

Rob Smith, a North Carolina musician, has been charged in a groundbreaking fraud case involving major streaming platforms, according to an indictment reviewed by Business Insider and a press release from the Department of Justice.

Smith, 52, is accused of using artificial intelligence (AI) to create music, which he then used to trick streaming services like Spotify and Apple Music into paying him over $10 million in royalties for songs that were barely listened to by actual people.

Smith allegedly orchestrated this scheme by uploading hundreds of thousands of AI-generated songs to streaming platforms. Using a network of bots and fake profiles, Smith ensured these songs were streamed billions of times, receiving small payments for each play—often just a fraction of a cent. According to the indictment, Smith spread these streams across a vast catalog of songs to avoid raising suspicion with sudden spikes in traffic.

The charges against Smith—wire fraud, wire fraud conspiracy, and money laundering conspiracy—mark the first time federal prosecutors have taken legal action over such a case. If convicted, he could face up to 60 years in prison.

The indictment details how Smith collaborated with a music promoter and the CEO of an AI music company to carry out the fraud. This partnership allegedly allowed him to mass-produce AI-generated songs at an astonishing rate, with the AI company supplying him with up to 10,000 tracks per month. In return, the company received data and a percentage of Smith’s earnings, estimated to be at least 15%.

To evade anti-fraud algorithms, Smith is said to have assigned random file names, song titles, and artist names to the AI-generated tracks, making detection difficult. Emails included in the indictment show the CEO of the AI company acknowledging the artificial nature of the music, describing it as “instant music” rather than legitimate creative work.

One particular email from Smith, directed at his co-conspirators, emphasized the need to flood the platforms with songs to bypass their anti-fraud systems: “We need to get a TON of songs fast to make this work around the anti-fraud policies these guys are all using now.”

According to the indictment, Smith’s fraudulent activities began to raise suspicion as early as 2018. A music distribution company flagged his operations, accusing him of fraudulent behavior. However, Smith forcefully denied any wrongdoing, claiming in an email that the allegations were “absolutely wrong and crazy.”

Despite these suspicions, Smith continued to rake in millions through his scheme, successfully flying under the radar until his recent arrest.

The Department of Justice has announced that Smith was arrested on Wednesday, and he now faces multiple serious charges. Though a court date has not yet been set, Smith could potentially be sentenced to up to 60 years in prison if found guilty on all counts.