The Sting: DJs Arrested In iTunes Royalty Scam

British police have arrested a group of London-based DJs who allegedly were involved in a music scam where iTunes and Amazon were used dishonestly to claim illegal royalties.

The 10-member group of DJs are said to have uploaded 19 song compilations to iTunes and Amazon via music distribution service Tunecore. Afterward they used over 1,500 stolen US and UK credit cards to open new accounts and buy the music at $10 per purchase.

The swindle was designed to reap the royalty payments off the music, which was paid by the unaware download sites.

Over five months the turntable crooks bought the songs thousands of times, spending around $750,000 (£468,750), reports the Guardian. They pulled in an estimated $300,000, paid by the two sites, which were unaware of the fraud being committed against them.

Working in a joint investigation, the Metropolitan police and FBI discovered the scam.

Detective Chief Inspector Terry Wilson, of the e-crime unit, said in a statement:

“This has been a complex investigation to establish what we believe to be an international conspiracy to defraud Apple and Amazon. This investigation, with its national and international dimension, exemplifies why we have set up this national response to e-crime.

“It shows the success that can be achieved through our close working relationship with the FBI.

“We are now making it more risky for criminals who seek to exploit the internet and commit e-crime across national borders. We are working hard through partnership with industry and law enforcement to combat e-crime and are committed to pursuing those responsible.”

All ten suspects are in custody at police stations in London and the Midlands on suspicion of conspiracy to commit fraud and money laundering.

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