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Man Arrested for Creating Fake Bands With AI, Then Making $10 Million by Listening to Their Songs With Bots

The songs that the AI CEO provided to Smith originally had file names full of randomized numbers and letters such as “n_7a2b2d74-1621-4385-895d-b1e4af78d860.mp3,” the DOJ noted in its detailed press release.

When uploading them to streaming platforms, including Amazon Music, Apple Music, Spotify, and YouTube Music, the man would then change the songs’ names to words like “Zygotes,” “Zygotic,” and “Zyme Bedewing,” whatever that is.

The artist naming convention also followed a somewhat similar pattern, with names ranging from the normal-sounding “Calvin Mann” to head-scratchers like “Calorie Event,” “Calms Scorching,” and “Calypso Xored.”

To manufacture streams for these fake songs, Smith allegedly used bots that stream the songs billions of times without any real person listening. As with similar schemes, the bots’ meaningless streams were ultimately converted to royalty paychecks for the people behind them.

figaro ,

Can you imagine how exciting it would be though when this actually started to work? This probably started as a side project, with a dude saying like, nahhh this could never work.

Until suddenly it did

IntergalacticTurtleFucker ,

bro found a glitch in the system

JIMMERZ ,

He found a flaw in the system and exploited it. Although he didn’t do anything particularly wrong, the tools he used allowed him to do it. Yet, somehow he has to pay the consequences and the companies that made the tools to exploit the system are not liable. Got it.

PersnickityPenguin ,

How is this illegal? Sounds legit to me.

I use AI to answer ai generated emails at work all the time. I also use AI to design buildings that will never house people, but computer systems. It’s all a shell game folks!!!

Scolding7300 ,

Probably the bots listening part. The point for the royalties is to get people to use the software and pay for it

umbrella ,
@umbrella@lemmy.ml avatar

i mean this is the system we got set up isnt it?

jordanlund ,
@jordanlund@lemmy.world avatar

Not sure how this is a crime… breach of TOS, sure, but a crime?

What law is being broken here?

If his fake bands are being paid for bot clicks, that’s a problem for the platforms to figure out. They need to examine their TOS.

Sterile_Technique ,
@Sterile_Technique@lemmy.world avatar

What law is being broken here?

He stepped onto the rich people’s turf. We plebs are supposed to stay in our thatch huts beyond their line of sight.

Straight to jail.

Tire ,

Try to overthrow the US government? You can still be president. Break a companies arbitrary TOS? Police are at your door to take you away for a long time.

ARg94 ,

Rent free…

Sweetpeaches69 ,

Well, of course. A president attempting to overthrow the government is a huge deal, you fetid fucking moron.

theangryseal ,

But nuthin hayuh-pinned! It wuz aint teefuh! Reeuhnt freeee…

nomous ,

lemmy.packitsolutions.net

Interesting instance.

StupidBrotherInLaw ,

I cannot imagine how stupid someone would have to be to actually think what you just said means anything of consequence and I’m possibly one of the stupidest blokes on Lemmy.

sigmaklimgrindset ,

It might be because I’m drunk, but Trump-posting from “lemmy.packitsolutions.net” is genuinely hilarious. It’s giving Four Seasons Total Landscaping.

abbadon420 ,

That just shows which of these two roles hold a higher regard in US judicial system.

PlantDadManGuy ,

I’m not a lawyer but this sounds like a pretty textbook definition of fraudulent business practice to me.

RecluseRamble ,

Not sure how this is a crime… breach of TOS, sure, but a crime?

What law is being broken here?

Not curious enough to actually read the article, eh?

Indicted on three counts involving money laundering and wire fraud

One may argue about money laundering but it’s pretty clearly fraud.

PersnickityPenguin ,

That’s just a generic indictment. And it’s allegedly. How do you perform wire fraud if a corporation legally paid you for a service?

jacksilver , (edited )

Yeah I read another article on this and it’s very unclear what was illegal. If I had to guess they’re getting him on the technicalities of the process rather than on the actual streaming.

Edit: so I looked it up and realized wire fraud is “electronic” fraud, not bank wiring - Online definition

Which given the way the guy did it definitely seems to meet that definition.

Eyck_of_denesle ,

I would assume it is Fraud

ulterno ,
@ulterno@lemmy.kde.social avatar

What law is being broken here?

The law of “don’t take money from the rich and powerful; only they take their your money”.

Underwaterbob ,

Wow. I’m a hobbyist musician. I have ~12 million listens across various streaming services and have made a whopping $45 in the two years since I finally released ~25 years worth of material. (Which is a lot of why it’s my hobby and not a living.)

I can’t imagine the numbers this guy had to pull off to make that much.

NineMileTower ,

Humble brag alert

Bytemeister ,

Send me a link and I can get you to ~12 million and 1 listens.

deltapi ,

How obvious is it that it’s a bot?

UnderpantsWeevil ,
@UnderpantsWeevil@lemmy.world avatar

I have ~12 million listens across various streaming services

The great thing about bots is that they can listen to every song on file, 24/7/365, and you can spin up as many of them as you like. 12 million is nothing.

Fedizen ,

there needs to be a law that in order to sell something in a store a real person needs to examine it.

badbytes ,

The guy sounds like a great entrepreneur.

Tire ,

If he already had millions in the bank the lawyers would have made this go away before anyone in the public would have noticed.

tomkatt ,

Maybe a stupid question but… what exactly was illegal about this? I’m sure there were ToS or EULAs violated, but what law is he being charged on?

DoucheBagMcSwag ,

It’s fraud I’m assuming. They fake “plays” for Spotify to reward by sending payment, but these plays were people that did not exist. Spotify was paying for ghosts to essentially steam music

PersnickityPenguin ,

Facebook and other social media corporations use AI bots to generate “views” to inflate their traffic numbers to entice advertisers. They also use bots to piss people off and drive “engagement.”. Which is also fraud.

Mammothmothman ,

Its not wrong when a corporation does it its capitalism. When an individual does it its crime.

hayes_ ,

3rd sentence of the article:

Indicted on three counts involving money laundering and wire fraud, the Charlotte-area man faces a maximum of 20 years per charge.

If you follow the article to the press release:

SMITH, 52, of Cornelius, North Carolina, is charged with wire fraud conspiracy, which carries a maximum sentence of 20 years in prison; wire fraud, which carries a maximum sentence of 20 years in prison; and money laundering conspiracy, which carries a maximum sentence of 20 years in prison.

tomkatt ,

Ah thanks. I didn’t follow to the release page and just skimmed the article, should have read closer.

GBU_28 ,

Those are the charges yes, but how is this any different than what all sorts of corporations do

aphonefriend ,

The difference is he was a poor trying to pull himself up. Corporations are glorious entities that can do no wrong in American law.

CrimeDad ,

Free him

BananaTrifleViolin ,

Maybe he broke terms of service with the streaming companies but they should be pursuing him in civil courts. This feels like abuse of the criminal justice system to retrieve money for companies that were negligent in how they were running their streaming businesses.

This guy produced music and he alsp streamed the music even if it was bots at industrial scale. He seemingly met the criteria needed to get money from the streamers. I’m not a lawyer at all but on cursory look at the definition and elements of wire fraud, I guessing this will hinge on whether this was a “material deception” - but he produced actual music and he streamed it, so is it?

Also i wonder whether it can be proven that the intent was to “defraud” rather than take advantage / game a system.

It feels like the tax payer is bearing the cost of prosecuting someone for a dispute between a person and the multi billion dollar music industry.

Also the music industry trying to paint this as theft of money from other artists is a bullshit - the streaming fees are supposedly divided out proportionately from overall streaming. He caused more streaming so the pot was bigger, and he took a proportionate share of that bigger pot. And any disproportionate sharing reflects the shitty practice’s of the streamers and the big music rights holders who are essentially monopolies squeezing out the smaller competitors from the system.

ayyy ,

Yes but you see the companies he defrauded are big and he is small.

WoodScientist ,

I don’t buy that. I think it’s fraud. Yeah, the victims of the fraud are not nice people, but the law is supposed to protect all, not just the nice people. This isn’t “gaming the system,” it’s fraud. Uploading the AI-generated songs is fine. The problem was the fake listeners. That’s where the real fraud is.

My city has a modest bus service they contract out to a private company to operate. At the front of the buses, there are scanners that count the number of people that enter the bus. These passenger counts are then baked in to what the company is paid for their services to operate the city’s bus system.

In theory, the contractor company could park a bus somewhere, set up a conga line of people, and just have thousands of phantom passengers board a bus, and then try to bill the city based on these inflated statistics. If they did that, I would absolutely hope they would be charged with fraud.

The law isn’t stupid. There’s a reason laws are enforced by judges, not algorithms. What this person did was little different than hacking a bank account and just stealing money from it. Yes, you could say, “they didn’t do anything wrong, they’re just gaming the system!” You could just as well call guessing someone’s password and stealing their money “gaming the system.” After all, is there anything on the bank’s login page that explicitly tells you not to enter someone else’s account and transfer their money to yours? No judge in a million years would buy that.

This was effectively just a hack. This guy had to create thousands of phantom people to pretend to listen to songs. He was clearly not making any good-faith attempt at making music and was just trying to exploit a weakness in their system design to extract money from them that he didn’t earn. The law thankfully doesn’t work on a standard of “well, they never told me I couldn’t.” Cases like this take into consideration the totality of the circumstances and weigh whether it is fraud or not. And this? This wasn’t some clever technicality a legit artist used to boost their earnings. This was unambiguous fraud.

I really don’t see how this is any different from pretending to be someone else to access their bank info, conning someone out of money by pretending to be a person in need, deep-faking someone’s voice to get their relatives to send money to you, or a hundred other scams involving fake identities. Yes, the victim in this case is a villain themselves, but that doesn’t make it any less a crime.

PersnickityPenguin ,

Dude, the music industry was accusing the US public of theft of music worth hundreds of trillions of $$$ back in the early 2000s. They started mailing random people with $250,000 fine PER SONG PIRATED. I had a friend with like half the Amazon music library on his home computer.

They do not fucking care and yes, have lobbied every politician and AG to be in their pockets.

aesthelete ,

Finally a use case for AI.

leds ,

Spotify might as well be doing this themselves already to avoid having to pay all those annoying artist

Etterra ,

Honestly I don’t think this should be a crime.

MentalEdge ,
@MentalEdge@sopuli.xyz avatar

No.

By inflating his own playcounts, the value of each play goes down. All that money he got? Came straight out of the pockets of real artists.

Kyrgizion ,

110K/mo was bound to attract attention. So, purely hypothetically, uhh, what would the lowest cutoff be before eyebrows start raising?

blockheadjt ,

Try 50k, with more realistic artist names, and more varied song names. Then you can bump the number up subsequent months, with the occasional drop sprinkled in for realism.

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