Brazil Initiates World’s Largest Operation Against Streaming Fraud

The Launch of Operation Against Streaming Fraud

The Brazilian law enforcement agencies have initiated the operation known as “The largest in history” aimed at combating fraud related to streaming plans. This involves the creation of fake music streams and other media content to exploit digital services or advertisers financially.

Details of the Operation

The initiative targets Justanotherpanel, a global organization providing the technical infrastructure for a vast network of resellers that offer fake streams used in streaming manipulations, according to the Global Recorded Music Industry Group IFPI.

Cyber Gaeco, a division within the cybercrime prosecutor’s office in São Paulo, has obtained a court order to block Justanotherpanel in Brazil. The operation has led to the shutdown of at least 43 local illegal services, affecting 1131 intermediaries involved in fraudulent streaming outside Brazil, as reported by IFPI on Tuesday, April 15.

According to the music tracking company Beatdapp, streaming fraud is estimated to result in a loss of 2 billion dollars annually.

“By introducing false music streams, Justanotherpanel deceived fans and ultimately siphoned income from the artists and creators,” stated IFPI. “Such activities have been flagged for criminal offenses, including violations of consumer protection laws.”

IFPI highlighted this operation as the “only major action” taken against streaming fraud.

“Fake streams are not merely a numbers game — they harm artists and undermine trust in our system,” emphasized IFPI CEO Victoria Okley.

The actions of Cyber Gaeco “reinforce the value of authenticity in music and ensure that Brazilian artists and music creators can continue to produce new music,” added the representative.

Paulo Rose, the President of the Brazilian recorded music group Pro-muxica, described streaming manipulations as “one of the most significant challenges facing the music industry,” and assured that Pro-Muxica “will continue collaborating with Brazilian authorities to combat these fraudulent practices and protect music consumers.”

“By adding fake music streams, Justanotherpanel deceived fans and ultimately drained income from the artists and creators of music.”

Victoria Okley, IFPI

Broader Context and International Actions

Efforts against streaming fraud in other countries have often focused on prolific individual offenders rather than the technology that supports them. In September of last year, the U.S. Department of Justice charged a 52-year-old resident of North Carolina for allegedly generating fake music streams that accrued around 10 million dollars in royalties.

The indictment revealed that Michael Smith engaged in various tactics to inflate streams, including the use of fake emails and cloud computing services, as well as payment of family plans on streaming platforms.

Additionally, last year, an individual in Denmark was convicted for artificially inflating streams for 689 tracks uploaded to streaming services like Apple Music, Spotify, and Yousee Musik between 2013 and 2019.

Prosecutors stated that the tracks the defendant uploaded weren’t original works but rather the creations of other artists altered in pace and length. An unnamed individual faced guilt for copyright infringement regarding 37 tracks. Initially, prosecutors claimed that the defendant earned approximately 635,000 dollars through fraudulent streams, but ultimately only 290,000 dollars could be demonstrated.

Brazil has emerged as a particularly proactive jurisdiction in addressing streaming fraud and other forms of intellectual property piracy.

Last month, Brazilian authorities arrested and charged a suspect involved in uploading over 400 fake tracks to Spotify, which generated more than 28 million plays and led to an illicit profit of 65,000 dollars.

Authorities also claimed the suspect stole 36 tracks from local composers via WhatsApp advertising groups.

In 2020, Brazilian authorities identified 14 sites involved in streaming manipulation, and the following year, they announced the closure of 10 streaming manipulation services, with an additional 20 ceasing operations.

In 2023, Brazilian law enforcement dismantled FileWarez, which IFPI identified as the most popular illegal file-sharing site in the country, previously hosting up to 118,000 registered users.

In 2024, authorities conducted Operation Redirement, which targeted eight illegal online music services distributing malware to users.

For several years, Brazilian authorities have been executing “Operation 404,” an ongoing initiative aimed at combating copyright infringement through cooperative efforts with trade groups like IFPI and Pro-Maffa. As of September 2024, seven operations have been conducted under this program, with the latest focus on areas concerning streaming coverage and applications in Brazil and Paraguay.