iDenfy, a notable provider in the regulatory technology sector, renowned for its services in identity verification and fraud prevention, has highlighted emerging threats within the music industry.
Since its inception in 2017, iDenfy has observed how advancements in AI and online services have facilitated opportunities for misuse by bad actors, including in specialised areas like music streaming and distribution.
Surveys from the past year indicate that individuals aged 18 to 24, comprising approximately 15.3% of all internet users, are particularly inclined to engage in downloading pirated music. Addressing this issue requires a robust understanding of compliance, music monetization education, and tools for financial security to curb the illegal distribution and monetization of copyrighted content.
Significance of identity verification in music distribution
iDenfy’s team recently met with Domantas Ciulde, CEO of iDenfy, to discuss the crucial role of identity verification in the music sector. They highlighted how artists, platforms, and listeners can collectively foster a more ethical approach to online music consumption.
Despite artists having access to numerous tools for securing their work, piracy remains prevalent. While copyright registration remains the primary defence, real strides are being made with digital technologies.
Fingerprinting and watermarking systems can automatically detect unauthorised use, while blockchain technology offers new avenues for distributing royalties and verifying ownership. According to iDenfy, their aim is to ensure that only genuine and vetted users are active in the digital economy, offering musicians tools to monitor their online presence. AI-driven content tracking, in conjunction with secure distribution channels, can significantly reduce piracy incidences.
Preventing piracy through enhanced measures
Streaming platforms carry substantial responsibility as gatekeepers of global music content
Streaming platforms carry substantial responsibility as gatekeepers of global music content. Implementing rigorous content identification systems, akin to Spotify’s or YouTube’s Content ID, is recommended to prevent piracy.
Mandatory Know Your Customer (KYC) procedures could further prevent unauthorised account use, making it harder for individuals to conceal their identities.
iDenfy's KYC platform provides a global solution, verifying over 3,000 types of official documents from more than 200 countries, ensuring authenticity in those selling or uploading digital content. This contributes to a safer and more accountable distribution network.
Role of Anti-Money Laundering and KYC checks
Piracy is frequently linked to financial gain through ads, subscriptions, or reselling, driving the need for effective Anti-Money Laundering (AML) and KYC checks.
By ensuring each financial transaction is tied to verified identities, it becomes more challenging for unauthorised parties to profit from illegal music sales. Domantas confirms that iDenfy’s systems enhance transparency in financial dealings.
“Our solution doesn’t just check documents. It uses biometric verification, 3D liveness detection, and a global screening database to flag suspicious behaviour. When combined with payment monitoring, this forms an informative data source against those trying to profit from piracy,” said Domantas Ciulde.
Impact and awareness of piracy damage
Supporting legitimate platforms reinforces the creative market and safeguards consumers from risks
Awareness remains the most effective tool against piracy. The financial damage it inflicts on artists and platforms is often underestimated, as every illicit download depletes potential revenue and hampers support for emerging talent.
Supporting legitimate platforms reinforces the creative market and safeguards consumers from risks associated with pirated files, such as malware.
Exceptions exist, such as DJs releasing music for free under the condition of credit during performances or media use. These approaches ensure musicians receive rightful compensation while protecting users from illicit distribution methods.
Integration of AI and identity verification
Viktor Vostrikov, CMO at iDenfy, emphasises the pivotal role of AI and identity verification in combating piracy. “AI is becoming more proficient at quickly and accurately identifying pirated content. The human touch is still important. At iDenfy, they combine automated checks with human review accuracy to catch deepfakes, manipulated IDs, and even fraud that machines alone might miss.”
iDenfy forecasts that by 2026, digital ecosystems prioritising content and identity protection will be least susceptible to piracy. Such environments, comprising verified creators and effective verification tools, create transparent revenue pathways that uphold user trust.
Resolving the multifaceted issue of music piracy necessitates concerted technological, legal, and financial efforts. Beyond merely preventing illegal downloads, the focus must be on sustaining trust among users while securing the creative landscape in the digital era. “Transactions are secured and transparent when users have been verified. Our goal is to establish an environment that will encourage and protect creativity,” affirmed Domantas Ciulde.
iDenfy, a pioneering global RegTech service provider, best known for its identity verification and fraud prevention solutions, designed to help regulated businesses comply with evolving compliance requirements, is noticing new threats in the music industry.
From iDenfy’s successful launch in 2017, AI and the convenience of online services have opened a door for bad actors to misuse online platforms, including in more niche sectors like streaming and music distribution.
Last year, approximately 15.3% of all internet users were individuals who fall into the category of ages 18 and 24, meaning they're the most likely to download pirated music for free. Compliance, music monetization education, and financial security tools are essential for understanding in order to prevent the unlawful distribution and monetization of copyrighted music.
Identity verification in the music distribution sector
Recently, iDenfy’s team discussed the importance of identity verification in the music distribution sector with Domantas Ciulde, the CEO, touching on topics like how platforms, artists, and listeners can all contribute toward a more ethical online music use.
In the greatest century currently, artists have more tools than ever before to safeguard their own works, but piracy is also more common than ever. The first line of defence against threats is still copyright registration, but digital technologies are where the real improvements are.
Unauthorised use can be automatically traced by fingerprinting and/or watermarking systems. Blockchain is also a hot topic right now because it can be used to distribute royalties to creators and confirm ownership.
People share the same goal at iDenfy. Whether they are uploading, licensing, or sharing content, iDenfy guarantee that only authentic and verified users take part in the digital economy. Musicians should also monitor the online presence of their work. Today, AI-based content tracking can catch leaks or duplicates early. When combined with secure distribution channels, piracy can be reduced significantly.
Preventing piracy
In terms of preventing piracy, streaming services have a significant amount of responsibility. They function as gatekeepers for the majority of music in the world. Platforms should consider putting in place content identification systems that demand rigorous user verification when a song is uploaded, such as Spotify's and YouTube's Content ID.
Anonymous accounts distributing copyrighted content are frequently the first step in piracy. It would be much more difficult for pirates to hide themselves behind false identities if each uploader had to go through a Know Your Customer (KYC) procedure.
At iDenfy, the KYC platform allows platforms to identify and analyse users globally. It verifies over 3,000+ types of official documents from more than 200 nations across the entire world. This assures that whoever is selling or uploading digital content is exactly who they claim to be.
Anti-Money Laundering (AML) and KYC checks
Piracy and profit are frequently linked. Via advertisements, subscriptions, or resale, unauthorised vendors and website owners make money from stolen music. Anti-Money Laundering (AML) and KYC checks can be enforced with assistance from financial institutions and payment processors.
Eventually, it will be more difficult for criminals to transfer or cash out their illegal song earnings when each financial transaction is linked to a verified identity. Domantas notes that iDenfy’s verification system supports such transparency.
“Our solution doesn’t just check documents. It uses biometric verification, 3D liveness detection, and a global screening database to flag suspicious behaviour. When combined with payment monitoring, this forms an informative data source against those trying to profit from piracy,” said Domantas Ciulde.
Damage from piracy
The most efficient instrument is awareness. The damage that piracy causes is still often undervalued. Every single illegal download takes away from artists another source of revenue and cuts into the platform's ability to support young talent.
Supporting musicians on trustworthy platforms, even those with advertisements, helps to maintain the creative marketplace. Customers should be more mindful of where they get the information they have access to.
There are some exceptions; for instance, when a new DJ mixes his playlist and the artist releases a song for free with the condition that credit be given if it is used for performances or media creation. It can be achieved by making sure that musicians are fairly compensated and that listeners stay safe from malware and fraud attacks that often include pirated files that, after clicking, can cause serious computer damage
identity verification and artificial intelligence
Viktor Vostrikov, CMO at iDenfy, says that identity verification and artificial intelligence will be very important. "AI is becoming more proficient at quickly and accurately identifying pirated content. The human touch is still important. At iDenfy, they combine automated checks with human review accuracy to catch deepfakes, manipulated IDs, and even fraud that machines alone might miss."
iDenfy predict that the safest digital ecosystems by 2026 are those that have both content and identity protection tools. Piracy can barely flourish in these communities, composed of verified creators only, advanced identity verification tools, and clear revenue streams.
Combating music piracy with technology, law, and finance is necessary, as it grows to be a very complex international issue for music fans, distributors, and even the entire creative industries. Preserving music in the digital age is more than preventing downloads, but also securing trust among users.
“Transactions are secured and transparent when users have been verified. Our goal is to establish an environment that will encourage and protect creativity,’’ said Domantas Ciulde, the CEO of iDenfy.
