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Hacked

$10 Million in Fake AI Royalties + the 'Infinite Money Glitch' That's Just Fraud + Voter Outreach So Bad It Seemed Like Phishing

Sep 17, 2024
Dive into the world of deceitful AI royalties, where a network of bots raked in $1.2 million by tricking music streaming platforms. Explore the ethical dilemmas surrounding AI in music production and the mix-up of a voter outreach campaign mistaken for phishing. Enjoy humorous insights into wire fraud while examining the pitfalls of disinformation from AI-generated content. With tales of cybersecurity risks and misguided banking trends, the discussion keeps the mood lively while tackling serious modern issues.
01:00:00

Podcast summary created with Snipd AI

Quick takeaways

  • Michael Smith's elaborate scheme using AI-generated music and bots to create over 4 billion fake streams exemplifies the vulnerabilities in music streaming systems.
  • The ethical dilemmas surrounding AI-generated music are raised by the low-quality 'instant music' produced, questioning ownership and artistic value in the industry.

Deep dives

Allegations of Music Streaming Fraud

Michael Smith was charged with orchestrating a complex scheme that leveraged AI-generated music and a botnet to inflate music streaming numbers. By using 52 cloud service accounts each running multiple bots, he allegedly created a network capable of generating over 4 billion fake music streams. His business model projected substantial earnings from streaming royalties, which initially seemed reasonable, with Smith reportedly earning substantial monthly sums by 2019. The entire fraud was notable for being the first U.S. criminal case involving artificially inflated music streaming, drawing attention to the exploitation of the music industry through technology.

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