Music streaming fraud – how does it work, who's making millions, and why does it need so much AI music?

Music streaming fraud – how does it work, who's making millions, and why does it need so much AI music?5. Aug.40 Min.

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Your weekly guide to the music biz and how it all works. This week, Stu and Joe pivot the podcast to the popular TRUE CRIME format in order to woo a giant mainstream audience. OK, not quite – but sort-of. We’ve spoken a lot recently about AI-generated music accounting for 50% of music uploaded to streaming platforms – and how the reason for it, mostly, is for it to be used for fraud. We had a few emails asking: so, how does AI music help fraudsters, and how does streaming fraud work anyway?So we pulled on our trenchcoats and got investigating – and in this episode we’re going to have a good old root around music streaming fraud: and we think you’ll actually be surprised at how it works, who is doing it – and how much money can be made. <ul><li>The crime: Streaming fraud isn't indie bands cheating to boost their numbers; it’s organised crime laundering money, and stealing from real artists.</li><li>The scale: anti-fraud firms estimate that a huge 7–10% of streams are fake, but streamign platforms claim that it’s far lower (but still costing artists a lot of money).</li><li>How AI powers fraud: scammers use AI to flood platforms with songs, hiding billions of fake streams across thousands of low-profile tracks.</li><li>It might be you: Fraudsters hijack real users' streaming accounts to stream the fake songs overnight and exploit bot farms to manipulate payout thresholds.</li><li>Betting manipulation: people using prediction platforms like Kalshi are accused of artificially pumping track streams to win trades – risking account bans for innocent artists.</li><li>DSP crackdown: Platforms are fining distributors, purging dead AI catalogue, and wiping fake streams to protect payouts for real creators.</li></ul>And in the special post-show lock-in section just for our <a href="https://www.patreon.com/12218634/join" target="_blank" rel="noopener noreferrer nofollow">⁠⁠Patreon Superfans⁠⁠</a>, Stu and Joe prop themselves up at the bar – in this week's bonus material: Stu and Joe chat about the recently announced 2026 Mercury prize nominees – which include young upstart songwriter Paul McCartney. So who do they think should win it, and who do they think will win it? Here's the list in full, in case you missed it:<ul><li>Dave: The Boy Who Played the Harp</li><li>Dove Ellis: Blizzard</li><li>Florence + the Machine: Everybody Scream</li><li>Jade: That’s Showbiz Baby</li><li>Knats: A Great Day in Newcastle (<a href="https://knats.bandcamp.com/album/a-great-day-in-newcastle" target="_blank" rel="noopener noreferrer nofollow">Joe's tip- listen here!</a>)</li><li>Kojey Radical: Don’t Look Down</li><li>Nia Archives: Emotional Junglist</li><li>Olivia Dean: The Art of Loving</li><li>Paul McCartney: The Boys of Dungeon Lane</li><li>Raye: This Music May Contain Hope</li><li>Suede: Antidepressants</li><li>War Child Records: Help(2)</li></ul>And then Stu poses an idle question that might expand into a running feature: what's your favourite music video of all time – and why?Joe's answer was "every Michel Gondry video" – including the White Stripes' famous Lego-powered "Fell In Love With A Girl" <a href="https://www.youtube.com/playlist?list=PLl3Hr9RYX6gPSyj7-_cRTcMi06DqZW9xh" target="_blank" rel="noopener noreferrer nofollow">https://www.youtube.com/playlist?list=PLl3Hr9RYX6gPSyj7-_cRTcMi06DqZW9xh</a>===================================As ever, we welcome your feedback, emails and – in particular – any questions you might have about how the music biz works!Email us: <a href="mailto:thepriceofmusi