Impact of streaming fraud

Streaming fraud may seem invisible, but its consequences are real and far-reaching. From financial losses to damaged reputations, it affects everyone in the digital content ecosystem—artists, platforms, advertisers, and audiences alike.

Financial losses

• Artists and rights holders: Fraud diverts royalty payments from legitimate creators to fraudsters.

  🎧 In 2023, streaming fraud was estimated to siphon off up to 3% of global streaming royalties—worth over $500 million.

• Platforms and DSPs: fraudulent streams increase bandwidth, storage, and processing costs while providing no real engagement or return.

• Advertisers: Ad impressions tied to bot traffic result in wasted budgets and reduced ROI.

Distorted charts and rankings

• Inflated stream counts from bots or fake users skew the visibility of real talent, making it harder for deserving artists to compete.

• Playlists and algorithmic recommendations become less reliable, harming the user experience and undermining the credibility of charts.

Legal and compliance implications

• DSPs may face regulatory scrutiny and lawsuits for misreporting royalties or enabling fraudulent behavior.

• Platforms must adhere to anti-fraud standards and contractual obligations with rights holders and advertisers.

• Failure to detect or prevent streaming fraud could violate digital services regulations, including the EU Digital Services Act and DMCA provisions.

Erosion of trust

• When users, artists, and partners lose trust in streaming metrics, the entire ecosystem suffers.

• Fraudulent activity undermines data analytics, making it harder for labels, marketers, and developers to make informed decisions.

🧠 Transparency and accountability in streaming are key to a healthy, sustainable digital media industry.