Apple Music Doubles Penalties for Streaming Fraud in Major Crackdown

Apple Music has significantly escalated its fight against streaming fraud by doubling the financial penalties for artists and labels caught manipulating streams on its platform. The company, which first introduced fraud penalties in 2022, has increased the base fine from 5% to 10% and raised the maximum penalty from 25% to 50% of fraudulent revenue, according to a report from The Hollywood Reporter.

The Growing Problem of Streaming Fraud

Streaming fraud has become an increasingly sophisticated problem in the music industry, with bad actors employing various tactics to artificially inflate their streaming numbers. The most common method involves using networks of bots to continuously stream music 24/7, generating illegitimate royalty payments. However, the fraud landscape has evolved to include more complex manipulation strategies designed to boost chart performance and secure coveted playlist placements.

Oliver Schusser, Apple's vice president overseeing Apple Music, Apple TV, and other services, revealed that the company removed "billions of manipulated streams" from its service in 2025 alone. This massive scale of fraud underscores why Apple felt compelled to strengthen its enforcement measures.

How Apple's Penalty System Works

The penalty structure operates on a sliding scale, designed to proportionally punish fraudulent activity based on its severity. Under the new system, if an artist or label is caught engaging in streaming fraud that generates $1 million in illegitimate revenue, they could face a maximum fine of $500,000. This represents a significant financial deterrent beyond simply demonetizing the fraudulent streams themselves.

Apple's approach to combating fraud has shown measurable success. In 2023, the company reported a 30% reduction in streaming manipulation, demonstrating that its enforcement efforts are having a tangible impact on the platform's integrity.

Industry-Wide Challenge

Schusser acknowledged that streaming fraud represents a "huge problem in the industry," noting that artists and labels are often motivated by the desire to achieve chart-topping positions and secure playlist placements. He described the ongoing battle against fraud as "a bit of Whack a Mole," suggesting that while Apple has developed robust enforcement infrastructure, many competitors continue to struggle with similar challenges.

The music industry's reliance on streaming metrics for chart positions, playlist curation, and royalty calculations has created powerful incentives for manipulation. As streaming has become the dominant form of music consumption, the financial stakes associated with high streaming numbers have grown exponentially, making fraud an increasingly attractive proposition for some actors despite the risks.

Apple's Quality-First Approach

Apple positions its anti-fraud efforts as part of a broader commitment to maintaining platform quality. "We look at ourselves as a quality platform," Schusser explained, emphasizing that the company's goal is to ensure fair competition and proper compensation for legitimate artists. The enhanced penalties are designed not just to punish bad actors but to redirect revenue back to artists who play by the rules.

The timing of this penalty increase suggests Apple believes its initial 2022 measures, while effective, needed reinforcement to address the evolving sophistication of fraud techniques. By doubling the financial consequences, Apple aims to create a stronger deterrent while continuing to protect the integrity of its music ecosystem.

Industry Impact and Future Implications

This move by Apple could have ripple effects throughout the music streaming industry. As one of the major players in the space, Apple's aggressive stance on fraud may pressure competitors like Spotify, Amazon Music, and others to strengthen their own enforcement mechanisms. The music industry has long called for more robust anti-fraud measures, and Apple's actions could accelerate broader industry reforms.

For legitimate artists and labels, these enhanced penalties represent a positive development, as they help ensure that streaming revenue is distributed more fairly based on genuine listener engagement rather than artificial manipulation. The music community has generally welcomed stronger anti-fraud measures, recognizing that streaming manipulation undermines the entire ecosystem's credibility.

As streaming continues to dominate music consumption, the battle against fraud will likely remain an ongoing challenge. Apple's decision to double its penalties demonstrates the company's commitment to maintaining a fair and transparent platform, even as bad actors develop increasingly sophisticated methods to game the system.

The full interview with Oliver Schusser can be found on The Hollywood Reporter's website, where he provides additional insights into Apple's approach to platform integrity and the future of music streaming.