Alleged fraudster got $10 million in royalties using robots to stream AI-made music

A North Carolina man is facing fraud charges after allegedly uploading hundreds of thousands of AI-generated songs to streaming services and using bots to play them billions of times. Michael Smith is said to have received over $10 million in royalties since 2017 via the scheme.

Smith, 52, was arrested on Wednesday. An indictment [PDF] that was unsealed the same day accuses him of using the bots to steal royalty payments from platforms including Spotify, Apple Music and Amazon Music. Smith has been charged with wire fraud conspiracy, wire fraud and money laundering conspiracy. Each count carries a maximum sentence of 20 years in prison. The US Attorney's Office for the Southern District of New York says this is its first criminal case that concerns the use of bots to artificially inflate music streaming numbers. 

Prosecutors accused Smith of creating thousands of bots to stream the songs. At first, he was said to have uploaded his own music to the streaming services, but realized that his catalog wasn't big enough to produce a large sum of royalties. After other efforts didn't pan out, he's said to have turned to AI-generated music in 2018.

According to the indictment, Smith began working with two unnamed co-conspirators — the CEO of an AI music company and a music promoter — to create hundreds of thousands of songs using AI. In exchange for a cut of revenue, the CEO allegedly provided thousands of tracks per week to Smith, who is said to have randomly generated song titles and artist names for the audio files.

Smith is accused of lying to streaming services by providing phony names and other fake account details while setting up the bots, and by agreeing to rules that ban streaming manipulation. According to the indictment, he deceived streaming services by making it seem the bot accounts were legit when in fact they "were hard coded to stream Smith’s music billions of times." Smith allegedly attempted to cover his tracks by using dummy email addresses and VPNs, while telling his co-conspirators to be “undetectable.”

"Michael Smith fraudulently streamed songs created with artificial intelligence billions of times in order to steal royalties," US Attorney Damian Williams said in a statement. "Through his brazen fraud scheme, Smith stole millions in royalties that should have been paid to musicians, songwriters, and other rights holders whose songs were legitimately streamed."

The case of Smith is in stark contrast to a musician The New York Times profiled earlier this year. Matt Farley has written, recorded and uploaded tens of thousands of songs to streaming services about anything and everything people might search for, from celebrities and marriage proposals to many tunes about poop. Some songs are just a few seconds long, but the practice seems to be entirely above board. He's said to have earned around $200,000 from his music in 2023.

This article originally appeared on Engadget at https://www.engadget.com/entertainment/streaming/alleged-fraudster-got-10-million-in-royalties-using-robots-to-stream-ai-made-music-162944343.html?src=rss

EU officials believe Telegram lied about user numbers to skirt regulation

Not only is Telegram CEO Pavel Durov facing criminal charges in France, the company he founded could be in hot water with the European Union as well. EU officials are looking into whether the platform lied about its user numbers to avoid being regulated under the Digital Services Act (DSA).

The Joint Research Centre — a department of the European Commission, the EU's executive branch — is conducting a technical investigation in an attempt to determine Telegram's true user numbers in the bloc. Officials are also discussing the matter with Telegram, according to the Financial Times. “We have a way through our own systems and calculations to determine how accurate the user data is,” said Thomas Regnier, the EC's spokesperson for digital issues, said.

Earlier this year, Telegram claimed to have 41 million users in the bloc. While it was supposed to provide an updated figure this month, it said only that it had “significantly fewer than 45 million average monthly active recipients in the EU.” Officials claim Telegram's failure to disclose the actual number is itself a breach of the DSA, while they believe that the investigation will reveal that more than 45 million residents are using it.

That figure is significant because services that have more than 45 million users (10 percent of the EU's population) there are designated as “very large online platforms.” Those are subject to stricter rules under the DSA, violations of which can lead to a fine of up to six percent of a company's annual revenue. Platforms with the designation have to meet higher compliance and content moderation standards, and share data with the EC. Third-party auditing is also a factor.

Telegram is said to be on the cusp of cracking 1 billion users in total. Other than China, the user base is “roughly proportionate to the population of each market [or] continent," Durov told the FT earlier this year.

On Wednesday, French prosecutors formally charged Durov amid an ongoing investigation. Among other things, he has been accused of “complicity in distributing child pornography, illegal drugs and hacking software” and “refusing to cooperate with investigations into illegal activity" on Telegram, which is an encrypted messaging service.

Durov, who was arrested at an airport near Paris over the weekend, was released from custody after posting bail of €5 million. The Telegram CEO, who obtained French citizenship a few years ago, is required to stay in France and check in at a police station twice weekly until the investigation is concluded. 

This article originally appeared on Engadget at https://www.engadget.com/big-tech/eu-officials-believe-telegram-lied-about-user-numbers-to-skirt-regulation-165538148.html?src=rss

Telegram CEO Pavel Durov has been charged and released from police custody

Telegram CEO Pavel Durov has been formally charged by French prosecutors and is barred from leaving the country amid their investigation into the Russian billionaire. Durov was officially charged Wednesday with “complicity in distributing child pornography, illegal drugs and hacking software” on the messaging app he founded, as well as “refusing to cooperate with investigations into illegal activity on the Telegram,” The Wall Street Journal reported.

Durov, who was arrested outside of Paris on Saturday, was released from police custody after paying €5 million in bail. He is required to stay in France “under court monitoring” and check in at a police station twice a week while the investigation plays out. That could take months or possibly years, as The WSJ points out.

That means Durov, who is known for frequently moving around and working from other countries, will be stuck in France for the foreseeable future unless the charges against him are dropped. In an earlier statement, Telegram called the charges against its founder “absurd” and said that he should not be responsible for the actions of his app’s users.

This article originally appeared on Engadget at https://www.engadget.com/big-tech/telegram-ceo-pavel-durov-has-been-charged-and-released-from-police-custody-214333241.html?src=rss

Microsoft and Activision Blizzard accused of ‘bad faith bargaining’ by Raven Software union workers

Raven Software’s union — the first of its kind in the gaming industry — has hit another snag negotiating its collective bargaining agreement with Microsoft and Activision Blizzard, games journalist Stephen Totilo reported in his Game File newsletter. The union has filed an unfair labor practice complaint with the National Labor Relations Board (NLRB), alleging chiefly that their employer refuses to bargain, or is not bargaining in good faith. The Raven workers succeeded in their union drive, joining the Communications Workers of America (CWA), over two years ago.

The full complaints have not been made available to the public as of Wednesday. We also reached out to Microsoft and Activision Blizzard for a comment on the complaint but did not receive a response as of presstime.

CWA president Claude Cummings Jr. released a statement following the unfair labor practice charges. He urged Microsoft to follow through on its agreement to respect the rights of the Raven Software workers’ union efforts.

“After Microsoft’s acquisition of Activision Blizzard, our members were optimistic that they would progress quickly to a first contract at Raven Software,” Cummings wrote. “Unfortunately, that has not happened. We encourage Microsoft to address the concerns raised in the unfair labor practice charge and make reaching a fair agreement a priority.”

An NLRB investigation revealed Activision Blizzard withheld raises from Raven’s workers following a separate unfair labor practice charge. The complaint filed by the CWA on behalf of workers in 2022 also accused the game publisher of retaliating against workers attempting to form a union by laying off staff members and moving QA workers to separate teams.

This article originally appeared on Engadget at https://www.engadget.com/gaming/microsoft-and-activision-blizzard-accused-of-bad-faith-bargaining-by-raven-software-union-workers-183040645.html?src=rss

British tech billionaire Mike Lynch confirmed dead after yacht sinking

UK tech entrepreneur Mike Lynch, 59, has been confirmed dead after multiple days of search and rescue efforts, multiple news agencies report. The 183-foot super-yacht, Bayesian, capsized off the coast of Sicily around 5 AM local time on Monday morning during a violent storm. Lynch was one of 22 individuals on board, including passengers and crew, with 15 individuals rescued and one body found immediately following the events. Five more bodies, including Lynch's, have since been recovered. At this time, his daughter is the only person still missing, Reuters reports, citing sources close to the rescue operation. 

Lynch co-founded tech companies Autonomy and Darktrace and founded venture capital firm Invoke Capital. Following the $11 billion sale of Autonomy to Hewlett-Packard, Lynch has spent the past decade-plus engulfed in a legal battle over allegations of inflating sales and misleading HP. A San Francisco jury acquitted him in June of all 15 counts of fraud. 

The yacht excursion was meant to celebrate Lynch's recent victory, with family, friends, and business associates joining him. Other members of the deceased include the yacht's chef, Neda and Chris Morvillo, a Clifford Chance lawyer who represented Lynch and Judy and Jonathan Bloomer, a non-executive chairman of Morgan Stanley International. Angela Bacares, Lynch's wife, escaped the wreckage and is safe. 

Lynch's co-defendant, Stephen Chamberlain, 52, also faced tragedy this week. The BBC reports he was hit by a car on Saturday, August 17, while out running in Cambridgeshire, England, and died from his injuries. 

This article originally appeared on Engadget at https://www.engadget.com/british-tech-billionaire-mike-lynch-confirmed-dead-after-yacht-sinking-121856262.html?src=rss

San Francisco aims to take down AI undressing websites in new lawsuit

San Francisco City Attorney David Chiu announced he intended to shut down 16 of the most popular AI “undressing” sites at a press conference on Thursday.

The Verge reported that the City Attorney is accusing these sites of violating federal laws regarding revenge pornography, deepfake pornography and child pornography. Chiu’s office also accused the sites of violating the state of California’s unfair competition law because “the harm they cause to consumers greatly outweighs any benefits associated with those practices,” according to the complaint for injunctive relief filed in a California superior court.

The complaint focuses on a total of 50 defendants Chiu intends to prosecute for operating undressing websites. Some of the defendants’ and websites’ names were redacted but it also publicly identifies a few companies that operate “some of the world’s most popular websites that offer to nudify images of women and girls” such as Sol Ecom located in Florida, Briver in New Mexico and the UK-based Itai Tech Ltd. The only identified defendant in the complaint is Augustin Gribinets of Estonia, who is accused of owning an AI undressing site featuring unconsented images of women and children.

These websites have generated over 200 million visits in a six-month period. The nonconsensual images of women and children on these sites “are used to bully, threaten and humiliate women and girls” as they gain more visitors “and this distressing trend shows no sign of abating,” according to the complaint.

The city’s attorney cites one case in its legal complaint from February in which an AI undressing site generated images of 16 eighth grade students at a California middle school. The incident possibly refers to one that occurred at a Beverly Hills high school in which 16 students were circulating fake nude images of other students. The school district expelled five students for their involvement in disseminating the illicit images, according to the Los Angeles Times.

Deepfake technology has become a major legal concern especially on the federal level. Last month, the US Copyright Office published a report on digital replicas and concluded that “a new law is needed.” Just a few days later, a bipartisan group of senators introduced the NO FAKES Act that would institute a new law protecting individuals from having their voice, face or body recreated with AI without their consent.

This article originally appeared on Engadget at https://www.engadget.com/ai/san-francisco-aims-to-take-down-ai-undressing-websites-in-new-lawsuit-185202792.html?src=rss

Kim Dotcom, roguish face of 2010s online piracy, will finally be extradited to the US

Kim Dotcom, the Megaupload founder and hard-partying face of early 2010s online piracy, is finally headed to the US. Reuters reports that New Zealand’s justice minister signed an extradition order on Thursday to end the entrepreneur’s nearly 13-year legal battle, paving the way for the German-born Dotcom to face charges from the US government.

“I considered all of the information carefully, and have decided that Mr Dotcom should be surrendered to the U.S. to face trial,” Goldsmith said in a statement. The decision came more than six years after a New Zealand court ruled Dotcom could be extradited to the US, paving the way for appeals that culminated in today’s decision.

Kim Dotcom partying, toasting glasses with various others in a club atmosphere. Still from music video.
YouTube / Kim Dotcom

Once the 13th most visited site online, the file-hosting hub Megaupload was a hotbed for pirated content. In early 2012, American authorities charged Dotcom and six others with racketeering, copyright infringement, money laundering and copyright distribution. The US indictment claimed Megaupload cost copyright holders $500 million in damages while making $175 million from ads and premium subscriptions.

The raid on Dotcom’s Auckland mansion was dramatic fare among 2012’s relatively tame headlines. The New York Times reported at the time that when he saw the police, Dotcom barricaded himself inside, activated several electronic locks and waited in a safe room. When officers cut their way inside, they saw Dotcom standing near “a firearm that they said looked like a sawed-off shotgun.”

Kim Dotcom on a comfortable water vehicle.
YouTube / Kim Dotcom

Dotcom (born Kim Schmitz) had several brushes with the law before that. He at least claimed to have spent three months in a Munich jail in 1994 for “breaking into Pentagon computers and observing real-time satellite photos of Saddam Hussein’s palaces.” Soon after, he received a suspended two-year sentence for a scam involving stolen phone card numbers.

In 2001, he was accused in the largest insider-trading case in German history. He reportedly fled Germany to escape those charges, was captured in Thailand, extradited (this week isn’t his first go-round) and convicted in 2002. At some point after that, he moved to New Zealand, holing up in a luxurious mansion.

You can see that mansion — and a taste of his larger-than-life persona — in his music video “Good Life.”

Justice Minister Paul Goldsmith signed the extradition order on Thursday and followed standard practice in giving Dotcom “a short period of time to consider and take advice” on his decision.

Dotcom, never one to mince words, posted a message on X that “the obedient US colony in the South Pacific just decided to extradite me for what users uploaded to Megaupload.”

This article originally appeared on Engadget at https://www.engadget.com/entertainment/kim-dotcom-roguish-face-of-2010s-online-piracy-will-finally-be-extradited-to-the-us-172100627.html?src=rss

Instagram is failing to act on abuse targeting women lawmakers on both sides of the aisle

Instagram is failing to enforce its own rules and allowing some of its most high-profile accounts to be targeted with abusive comments “with impunity,” according to a new report from the Center for Countering Digital Hate. The anti-hate group claims that Meta failed to remove 93 percent of comments it reported to the company, including ones that contain racial slurs, violent threats and other disturbing language that would seem to clearly violate the social network’s rules.

CCDH’s researchers zeroed in on five Republican and five Democratic lawmakers who are up for election this year. The group included Vice President Kamala Harris, Representative Nancy Pelosi, Senator Elizabeth Warren, Representative Marjorie Taylor-Greene, Senator Marsha Blackburn and Representative Lauren Boebert.

The researchers reported 1,000 comments that appeared on the lawmakers’ Instagram posts between January and June of this year and found that Meta took “no action” against the vast majority of those comments, with 926 of them still visible in the app one week after being reported. The reported content included comments with racial slurs and other racist language, calls for violence and other abuse.

“We're simulating the moment at which someone reaches out their hand asking for help, and actually, Instagram's failure to act on that compounds the harm done,” CCDH CEO Imran Ahmed said in a briefing about the report.

The CCDH also found that many of the abusive comments came from “repeat offenders” which, according to Ahmed, has “created a culture of impunity” on the platform. The report comes less than three months before the US presidential election, and it notes that attacks targeting Harris, who is now campaigning for president seem to have “intensified” since she took over the ticket. “Instagram failed to remove 97 out of 105 abusive comments targeting Vice President Kamala Harris, equivalent to a failure to act on 92% of abusive comments targeting her,” the report says. It notes that Instagram failed to remove comments targeting Harris that used the n-word, as well as gender-based slurs.

In a statement, Meta said it would review the report. “We provide tools so that anyone can control who can comment on their posts, automatically filter out offensive comments, phrases or emojis, and automatically hide comments from people who don't follow them," Meta's Head of Women's Safety, said in a statement. "We work with hundreds of safety partners around the world to continually improve our policies, tools, detection and enforcement, and we will review the CCDH report and take action on any content that violates our policies.” 

This article originally appeared on Engadget at https://www.engadget.com/big-tech/instagram-is-failing-to-act-on-abuse-targeting-women-lawmakers-on-both-sides-of-the-aisle-103025621.html?src=rss

Turkey has blocked Roblox over child exploitation reports

Just five days after blocking Instagram, Turkey has banned Roblox over reports of inappropriate sexual content perceived as exploiting children, Türkiye Today reported. An official from the Türkiye Directorate of Communications also cited "promotion of homosexuality" and incentives for children via the game's Robux virtual currency as reasons for the ban. 

The regulator also said that monitoring content on Roblox is a significant challenge. The countrywide restrictions were imposed following an investigation by the chief public prosecutor's office. 

Last week, Instagram was blocked in in the country following a dispute over Hamas-related content on the platform. Turkey’s head of communications stated in a post on X that Instagram was "actively preventing people from posting messages of condolences” for Ismail Haniyeh, the Hamas leader who was killed earlier this week.

Turkish authorities have banned major social media services before. Twitter was briefly blocked in the country last year following an earthquake that killed thousands of people. YouTube and Twitter were also blocked in 2014.

Roblox has had its own problems, particularly around complaints of child exploitation. Earlier this year, the company was hit with a lawsuit accusing it of exploiting child labor and deceptive advertising. The company was also sued in 2022 for allowing adult users to sexually prey on a 10-year-old girl. Discord, Snap and Meta were also named in that suit. 

This article originally appeared on Engadget at https://www.engadget.com/gaming/turkey-has-blocked-roblox-over-child-exploitation-reports-120018044.html?src=rss

Hack and payback Instagram scammer gets nabbed after bragging about it on a podcast

A guest who appeared on the No Jumper podcast to boast about a hack and payback scheme involving his victims’ social media accounts could face federal charges. Idriss Qibaa, also known as “Dani” and “Unlocked” who authorities allege ran the social media hacking site Unlocked4Life.com, faces two criminal felony counts filed by the US Attorney's Office in Nevada for allegedly violating interstate communications laws for threats he issued in text messages to two victims and members of their families, according to documents obtained by 404 Media.

Investigators filed the sealed complaint against Qibaa on July 25 and issued a warrant the following Monday when also made his first initial appearance in court, according to federal court records.

The criminal complaint states that the FBI received a tip about Qibaa’s alleged extortion scheme on April 1 pointing to an appearance he made on the No Jumper podcast hosted by Adam22, also known as Adam Grandmaison, back in January under his pseudonym “Dani.” Qibaa outlined a financial scheme using over 200 victims’ social media accounts in which he would lock them out of their pages and charge them to regain access.

He also boasted that he made about $600,000 a month from his activities and hired two security guards to follow him.

“You’re making $2 million a month off your Instagram and Telegraph,” Qibaa says on the podcast. “I come and I take it away and make you pay for it back and I make it public and I post it and I expose you.”

Qibaa even said on the podcast episode that he pulled the scheme on celebrities who unknowingly kept paying him to get their social media back. He later noted “I’m very petty” followed by a menacing laugh.

“I’ve talked to stars who have told me that they’ve paid to get it back 20 times over and over and over they just have to keep paying to get it back,” Qibaa says, “and I’m like you realize what’s happening to you right like the same that’s getting you it back is…you’re getting extorted.”

The criminal complaint tells the story of eight victims’ encounters with Qibaa and his services. One identified as “J.T.” operated two Instagram accounts: a cannabis news aggregate account called “theblacklistxyz” and a cannabis merchandising store under “caliplug,” both of which are currently set to private. J.T. reached out to Qibaa asking if he could obtain a username. Qibaa quoted a price back between $4,000-$5,000. J.T. refused to take Qibaa up on the offer and Qibaa responded with threats.

“Qibba told J.T. that J.T. had wasted Qibaa’s time, blocked J.T.’s Instagram pages and demanded $10,000 to reinstate it,” the complaint reads. “J.T. offered Qibaa $8,500 to reinstate the account, an offer Qibaa accepted.”

The complaint asserts that Qibba reached out to J.T. two more times. The first time, Qibba asked if J.T. would promote his Instagram page under the username “unlocked4life” that’s since been taken down. J.T. agreed but when he learned Qibaa had been threatening and extorting other victims, he confronted Qibaa and “Qibaa was irate.”

A few months later, Qibaa apparently increased the scope of his threats to J.T. and members of his family. He sent threats to call the victim’s ex-wife’s lawyer and child protective services on his kids. Screenshots of the victims’ phone show Qibaa allegedly identifying the address and phone number of the victim’s sister. He texted another family member and introduced himself as “The guy that’s gonna murder your drug dealer brother. Tell him Unlocked says hi though. We have your entire family’s info.”

Another victim identified as a journalist and comedian with the initials “E.H.” learned they were a target of Qibaa’s illegal services. Qibaa blocked their Instagram account, the name of which was redacted, at the request of a dentist in California who treated them. E.H. reached out to the Unlocked4Life account and received a reply that read, “Yo its Idriss.” He then told E.H. to pull up the No Jumper podcast episode featuring his interview. Qibaa not only took the victim’s Instagram account access away but also threatened to take their Social Security number and “blast it out” if they didn’t pay him $20,000.

According to the complaint, not even restraining orders could make Qibaa leave his victims alone. One named “R.B.” received a restraining order from Los Angeles County Superior Court in July but “Unblocked” responded, “Cute restraining order..last I checked you’re still gonna die.” Then “UNLOCKED UNCENSORED” posted on Telegram, “$50,000 reward for whoever sleeps BO this week.”

Perhaps the most disturbing threats happened to several victims in which Qibaa claimed he’d happily go to jail if payments weren’t made to him. Screenshots of the text chains show a person named “Dani” and “Daniel” telling his victims, “I will come and shoot you myself,” “I’m going to bury you for this shit” and “D., L., J., T., Children-Main Targets” referring to the victims’ children.

Another text chain shows Qibaa allegedly threatening someone that he would “rather take a life sentence for murdering you then this,” “Idc if I have to shoot you my self [sic]” and “I’ll go to jail happily.” He follows the text with the threat “Here’s the last guy that came to take photos / came near my home” and sends three pictures of an unidentified bearded man, his car and a photo of his badly bruised and bloodied on the ground.”

Adam22 concluded his podcast interview with “Dani” saying he was “very excited to see the fallout from this” and “I respect the hustle even though I can’t justify it on a moral level.”

This article originally appeared on Engadget at https://www.engadget.com/hack-and-payback-instagram-scammer-gets-nabbed-after-bragging-about-it-on-a-podcast-202509349.html?src=rss