Brazilian law enforcement has launched what is being called the \u201clargest-ever\u201d operation to disrupt streaming fraud \u2013 the practice of creating fake streams of music or other media content to skim money from digital service providers or advertisers.<\/p>\n
The initiative targets JustAnotherPanel<\/strong>, a global organization that provides technical infrastructure to a large network of resellers that offer fake streams used in streaming manipulation, according to global recorded music industry umbrella group IFPI<\/strong>.<\/p>\n Cyber Gaeco, the cybercrime unit of the prosecutor\u2019s office in Sao Paulo, obtained a court order that blocked JustAnotherPanel in Brazil, and at least 43 local illegal services<\/strong> have been disrupted, and 1,131 resellers<\/strong> of streaming fraud services outside Brazil have been impacted, IFPI said in a statement on Tuesday (April 15).<\/p>\n According to<\/a> music data tracking firm Beatdapp<\/strong>, music streaming fraud costs the music industry some $2 billion<\/strong> per year.<\/p>\n \u201cBy delivering fake music streams, JustAnotherPanel misled fans and ultimately diverted revenue away from artists and music creators,\u201d IFPI said. \u201cSuch activity was found to amount to criminal offences including breach of consumer protection laws.\u201d<\/p>\n IFPI said it’s \u201cthe single largest action yet\u201d against streaming fraud.<\/p>\n \u201cFake streams aren\u2019t just a numbers game \u2013 they harm artists and erode trust in our system,\u201d IFPI CEO Victoria Oakley<\/strong> said.<\/p>\n Cyber Gaeco\u2019s actions \u201creinforce[d] the value of authenticity in music and ensure[d] that Brazilian artists and music creators can continue to create new music,\u201d Oakley added.<\/p>\n Paulo Rosa<\/strong>, President of Brazilian recorded music trade group Pro-M\u00fasica<\/strong>, described streaming manipulation as \u201cone of the biggest concerns of the music sector,\u201d and said Pro-M\u00fasica would \u201ccontinue to work closely with Brazilian authorities to tackle these fraudulent practices and protect music consumers.”<\/p>\n \u201cBy delivering fake music streams, JustAnotherPanel misled fans and ultimately diverted revenue away from artists and music creators.”<\/p>\n Victoria Oakley, IFPI<\/span><\/p><\/blockquote>\n Other countries\u2019 efforts against streaming fraud have often focused on prolific individual streaming fraudsters, rather than the technology backing them. Last September, the US Department of Justice indicted<\/a> a 52-year-old North Carolina resident for allegedly generating fake music streams that racked up some $10 million<\/strong> in royalties.<\/p>\n According to the indictment, Michael Smith<\/strong> employed a number of measures to boost streams, including using fake email accounts and cloud computer services, and paying for family plans on streaming platforms.<\/p>\n Also last year, a man in Denmark was convicted<\/a> of artificially boosting the stream count on 689 tracks<\/strong> he had uploaded to streaming services including Apple Music<\/strong>, Spotify<\/strong> and YouSee Musik<\/strong> between 2013 and 2019.<\/p>\n Additionally, prosecutors said the tracks the defendant uploaded were not his own, but were instead other artists\u2019 work that had their tempo and length changed,. The unnamed individual was found guilty of breaching copyright on 37 tracks<\/strong>.<\/p>\n Prosecutors initially said the defendant had earned the equivalent of $635,000<\/strong> on the fraudulent streams, but ultimately only were only able to prove $290,000<\/strong>-worth of streaming fraud.<\/p>\n Brazil has proven itself to be a particularly aggressive jurisdiction when it comes to fighting streaming fraud and other forms of IP piracy.<\/p>\n Last month, authorities in the country arrested and charged<\/a> an individual accused of uploading more than 400 fake tracks<\/strong> to Spotify. The tracks generated more than 28 million plays<\/strong> and earned the unnamed suspect some $65,000<\/strong>.<\/p>\n Authorities also alleged that the suspect had stolen 36 tracks<\/strong> from local composers through promotional WhatsApp groups.<\/p>\n In 2020, Brazilian authorities announced<\/a> they had taken down 14 websites<\/strong> involved in streaming manipulation, and the following year, they announced they had shut down<\/a> 10 streaming manipulation services<\/strong>, while another 20 stopped offering the services.<\/p>\n In 2023, Brazilian law enforcement took down FileWarez<\/strong>, which IFPI described<\/a> as the most popular illicit file-sharing site in the country, which at its peak counted 118,000 registered users<\/strong>.<\/p>\n In 2024 law enforcement\u2019s Operation Redirect<\/strong> took down<\/a> eight illegal online music services that were being used to distribute malware to users.<\/p>\n
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