You check your distributor dashboard ready to withdraw that $4,200 you’ve earned over three months and you’re locked out. Account frozen. “Suspected artificial streaming.” Music pulled from Spotify and Apple Music. Your royalties? Gone, maybe forever.
I’ve been analyzing music distribution for six years, and I’ve seen this happen to over 100 independent artists. Most had no idea what triggered it. Some got their money back after months of fighting. Many never saw a cent. The worst part? Half of them were completely innocent victims of bot attacks they didn’t buy or algorithmic false positives they couldn’t fight.
This guide breaks down exactly why music distributors terminate accounts (often right when you try to withdraw), the business tactics that let them keep your money, and the step-by-step strategies to protect yourself or fight back if you’re already in crisis mode.
Crisis Quick Start: Your Account is Frozen Right Now
If your account just got frozen or terminated, skip everything else and do this in the next 24 hours:
1. Stop and don’t change anything
Don’t delete releases, change bank info, or open new accounts. Any action looks suspicious during an investigation.
2. Screenshot everything immediately
- Account balance and payout history
- Full release list with ISRCs and UPCs
- Error messages or ban notifications
- Analytics showing streams, territories, platforms
- Tax forms and payment method details
Save these in a dated folder. You’ll need them.
3. Download all reports NOW
Export CSVs of:
- Streaming data for last 6-12 months
- Territory breakdowns
- Revenue reports by platform and track
- Transaction history
Some distributors lock report access once you’re flagged.
4. Save the exact notification
Copy the full text of any emails or dashboard messages. Note dates, times, case numbers. This is your evidence trail.
5. Send one clean support ticket
Subject: Request for clarification regarding account freeze
Hi [Support Team],
My account was flagged/frozen on [date]. The notification stated [exact reason].
Could you please provide:
- The specific ToS clause that applies
- A summary of evidence that triggered this
- The appeal process and timeline
- Status of my earned royalties during this period
I’m ready to provide any documentation needed.
Thank you, [Your Name] Account Email: [email] Artist Name: [name]
This creates a paper trail and requests specifics they sometimes must provide legally.
Evidence to gather while waiting:
- Invoices for any playlist pitching, ads, PR campaigns
- Screenshots of Facebook Ads, TikTok Ads, Google Ads dashboards
- Email correspondence with curators, blogs, press
- Analytics from your website, YouTube, email list
- DAW project files (if copyright issues)
- Timeline of when you released tracks and ran campaigns
The burden of proof is on you to show you’re legitimate. Start building your case now.
Why Distributors Really Block Accounts and Withhold Money
Most artists assume distributors want to pay them—happy artists mean more uploads. The reality is way more complicated. Understanding the business incentives behind sudden bans is crucial to protecting yourself.
The Business Model Behind Sudden Bans
Here’s the uncomfortable truth: distributors operate in a high-risk, low-margin business where one fraud incident can destroy their relationship with Spotify or Apple Music. That asymmetric risk shapes everything.
DSPs hold all the leverage
When Spotify’s fraud team flags suspicious streams, they don’t just remove the streams—they issue chargebacks to the distributor, demanding refunds of royalties already paid. If a distributor gets too many fraud strikes, Spotify can terminate their API access entirely.
For a small-to-midsize distributor, losing Spotify access is an existential threat. They can’t afford to give artists the benefit of the doubt. Blocking first and investigating later is the safer business decision for them—even if it destroys you financially.
Fraud detection is automated and brutal
Most distributors don’t manually review flagged accounts. They rely on:
- Algorithmic fraud scoring from DSPs (which they often can’t see in detail)
- Pattern-matching systems flagging sudden spikes or unusual geographic distribution
- Manual audits only when the flag is severe enough
These systems are calibrated for high sensitivity—meaning tons of false positives. If you’re innocent, you’ll need to prove it. The default assumption is guilt.
Holding your money is low-risk for them
When a distributor freezes your royalties during an “investigation,” that money sits in their account. There’s little downside in dragging out the process. Some artists report waiting 60-90 days or longer, only to have royalties forfeited based on vague “ToS violations.”
By that point, hiring a lawyer costs more than the money at stake.
The perverse incentive of forfeiture clauses
Many distributor contracts let them forfeit your royalties entirely if they determine you violated their ToS—even without proof, even without conviction. That forfeited money doesn’t have to go back to Spotify. In some cases, it becomes revenue for the distributor.
I’m not saying every distributor acts in bad faith. But the incentive structure creates an environment where your account can be sacrificed to protect their platform—and there’s not much you can do about it.
Terms of Service Clauses That Let Them Keep Your Money
Buried in those ToS documents you clicked “agree” on are the legal hooks that let distributors freeze, withhold, or forfeit your money with minimal justification.
“Termination at sole discretion”
Example language:
“We reserve the right to terminate your account at any time, for any reason, at our sole discretion, with or without notice.”
Translation: They can kick you off whenever they want and don’t owe you an explanation. “Sole discretion” means they don’t have to justify it to you or prove anything in court.
“Good faith belief” of fraud
Example:
“We may suspend your account if we have a good faith belief that you engaged in fraudulent activity, artificial streaming, or copyright infringement.”
Translation: They don’t need proof. They don’t need a conviction. Just a “belief” that you did something wrong. “Good faith” is a very low legal bar—as long as they didn’t act with malicious intent, they’re covered.
Forfeiture of royalties for violations
Example (paraphrased from real ToS):
“If your account is terminated for suspected fraud, we reserve the right to withhold and forfeit any unpaid royalties. Forfeited royalties may be redistributed to rights holders, retained to offset our losses, or returned to platforms at our discretion.”
Translation: If they decide you broke the rules, they can keep your money—or give it away. You might never see a cent, even if you later prove innocence.
This is one of the most legally contentious clauses. Whether it’s enforceable depends on jurisdiction and contract specifics. But fighting it in court is expensive and slow, which is exactly what they’re counting on.
Indefinite “investigation” holds
Example:
“During any investigation of suspected fraud, we may place a temporary hold on your account and royalty payments until the matter is resolved.”
Translation: “Temporary” can stretch into months. There’s often no defined timeline and no penalty if they drag their feet. Your money is frozen indefinitely.
The philosophical trap
Until money is deposited in your bank account, it’s not legally yours. The contract treats unpaid royalties as funds they’re holding on your behalf—giving them broad discretion to withhold or redirect those funds.
You might feel like you “earned” that $4,200, but in their eyes, you only have a conditional claim to it.
Artificial Streaming and Bot Accusations
“Artificial streaming” is the #1 reason distributors freeze accounts. But what exactly counts as fraud? How do detection systems work? And what do you do when you’re accused of buying fake streams you never bought?
How Fraud Detection Actually Works
Streaming platforms use machine learning models, pattern recognition, and manual audits to detect artificial streaming. The exact algorithms are proprietary, but based on industry reports and case analysis, here’s what typically triggers flags:
1. Abnormal replay patterns
Real listeners might replay songs, but not in identical patterns across thousands of accounts. Systems look for:
- Same-second replay patterns (10,000 accounts all playing exactly 31 seconds)
- Looping behavior (same track 50 times in a row)
- Suspicious playlist velocity (added to 5,000 playlists in 24 hours)
If your track shows these patterns, the algorithm assumes bots—even if you didn’t create them.
2. Geographic anomalies
Red flags include:
- Sudden spikes from countries with known bot farms (80% of streams suddenly from Philippines when your audience was in the US)
- Mismatch between promotion and geography (you ran Canadian ads but 90% of streams are from Turkey)
- Streams from IP ranges associated with VPNs or data centers
3. Device and account fingerprinting
Platforms detect when streams come from:
- Automated software or bots (based on user agent strings, click patterns)
- Account farms (hundreds of “users” from the same device/IP)
- Fraudulent free trials (accounts created with stolen credit cards just to stream)
4. Playlist ecosystem behavior
If your track appears on playlists known to be botted or associated with “stream farming” services, you get guilt-by-association. DSPs maintain internal blacklists, and appearing on them flags your entire catalog—even if you didn’t pay to be there.
5. Payment and payout anomalies
Distributors also flag when:
- You’ve had low royalties for months, then suddenly request a $10,000+ payout
- You withdraw immediately after a suspicious spike
- You change payment details right after being flagged
The false positive problem
All these systems are calibrated for high sensitivity—they’d rather flag 100 innocent artists than let one fraudster through. For platforms, that’s rational. For you, it means you’re guilty until proven innocent, and the burden of proof is entirely on you.
False Positives and Bot Attacks on Innocent Artists
The nightmare scenario: you didn’t buy fake streams, but your music got botted anyway. How does this happen?
Why someone might bot your music without consent:
-
Competitor sabotage - Rare, but documented cases exist of artists sending botted streams to competitors to get them flagged and removed.
-
Shady “promo” services - You hired a playlist service claiming legitimate curators but actually using bot farms. You thought you were paying for real promotion; they delivered fraud. You’re on the hook.
-
Third-party playlist scams - You submitted to an independent curator for free. Unbeknownst to you, they were inflating playlist numbers with bots. When Spotify purged the playlist, your track got caught.
-
Algorithmic misinterpretation - Sometimes legitimate viral moments (TikTok trend, Reddit post, celebrity mention) create patterns that look like bots: sudden spikes, geographic concentration, replay loops. The algorithm flags you anyway.
How to defend yourself as a bot attack victim:
The burden of proof is on you. Here’s what actually helps:
1. Build a documented promo timeline
Keep a log of:
- Every promotional service or campaign (with invoices)
- When each campaign ran and expected results
- Analytics before and after each campaign
If you can show a spike happened outside the window of your known campaigns—or from geography you never targeted—that’s evidence in your favor.
2. Show transparent marketing trails
Provide proof of:
- Facebook/Instagram/TikTok ad campaigns (screenshots showing targeting, spend, impressions)
- Organic social media posts that went viral (timestamps and engagement)
- Press coverage, playlist placements, influencer mentions with receipts
The more you can document a plausible explanation for your streams, the harder it is for them to claim you “should have known” it was fraud.
3. Request data from the distributor
In your support ticket, ask:
- “Can you provide specific dates, territories, and playlists where suspicious activity was detected?”
- “Can you share the data that triggered this flag?”
Sometimes they won’t share (citing “proprietary fraud detection”), but sometimes they will—and if suspicious activity came from regions you never promoted to, that’s leverage.
The harsh reality
Even with all this evidence, there’s no guarantee they’ll reverse their decision. Many adopt a strict liability approach: if your track got botted, you’re responsible, period. Their reasoning: “You should have been more careful about who you worked with.”
That’s not fair, but it’s reality. The best defense is prevention: vet every promotional service carefully, avoid anything guaranteeing specific stream counts, and document everything from day one.
What to Do Based on Your Situation
Here are actionable, scenario-specific responses depending on what kind of account issue you’re facing.
Account Frozen During Withdrawal
What this looks like: You’ve accumulated royalties and try to withdraw. Within hours or days, your account is frozen pending review. Message says “We need to verify your account” or “Your payout is under review.”
Why this happens: Large or unusual withdrawals trigger KYC (Know Your Customer) and AML (anti-money laundering) checks, especially if:
- First withdrawal or first time above a threshold ($1,000+)
- You recently changed payout method
- Identity details don’t perfectly match bank info
- You’re in a country they consider “high risk”
Sometimes it’s also a fraud suspicion trigger.
What to do:
Step 1: Confirm identity documents match
- Legal name matches government ID exactly
- Address matches bank account or PayPal address
- Tax information is complete and accurate
Update immediately if anything is mismatched.
Step 2: Ask for clear explanation
Subject: Request for clarification on payout hold
Hi,
My payout request from [date] has been placed on hold. Is this:
- Routine identity verification
- Compliance/AML check
- Fraud-related investigation
- Something else
I’m ready to provide any documents needed. What’s required and the expected timeline?
Thank you.
If it’s just KYC, they’ll ask for ID and usually resolve in 5-10 business days. If it’s fraud-related, you need to know now.
Step 3: Provide requested documents
- Use official support portal or encrypted email only
- Send clear, legible scans or photos
- Include reference numbers in filenames
Don’t send ID to random email addresses—phishing scams targeting artists are real.
Step 4: Follow up on schedule
If no response within their timeline (or 7 business days), send polite follow-up. Escalate only after 2-3 follow-ups over 2-3 weeks with no response.
Step 5: Know when to walk away
If your payout is under $200-500 and they’re stonewalling, sometimes the cost in time and stress exceeds the money. You might decide to write it off and move to a new distributor.
Music Removed From Stores
What this looks like: You get an email or notice that releases have been taken down from streaming platforms. Distributor says “Your music has been flagged by [platform]” or “We’ve received a copyright complaint.”
Why this happens:
- DSP flagged music for suspected fraud or artificial streaming
- Someone filed a copyright or trademark claim
- Distributor pulled it preemptively based on internal fraud scoring
- You violated platform rules (explicit content not marked, incorrect metadata, impersonation)
What to do:
Step 1: Identify reason and source
Ask distributor:
- Which platform(s) removed my music?
- What reason did they give?
- Was this initiated by the platform or by you?
- Can you provide takedown notice or flag details?
The resolution path is completely different depending on whether it’s fraud, copyright, or metadata.
If fraud-related: Gather promo evidence (documented campaigns, proof of organic viral moments, geographic data showing where streams came from).
If copyright claim: Ask who filed the claim, what part is allegedly infringing, and whether it was Content ID match, DMCA notice, or trademark complaint.
If legitimate (you sampled something without clearing), contact the claimant to resolve. If bogus, file a counter-claim with the platform and provide proof of ownership.
If metadata violation: Fix immediately (artist name too similar to major artist, explicit content not marked correctly, cover art with copyrighted logos, profanity in metadata).
Step 2: Request reinstatement in writing
Once you’ve addressed the issue, send formal reinstatement request with evidence attached.
Step 3: Consider moving distributors if refused
If they won’t reinstate, you might need to pull your catalog, wait 30-90 days for disputes to resolve, then re-upload to a new distributor using same ISRCs and UPCs.
Warning: Some DSPs maintain internal “artist blacklists” that follow you across distributors. If Spotify permanently flagged your catalog for fraud, switching distributors won’t help.
Permanent Account Termination
What this looks like: Email saying your account has been permanently terminated, often with “This decision is final” or “You are prohibited from creating new accounts.”
Why this happens:
- Repeated fraud flags or ToS violations
- Severe fraud (in their assessment)
- Identity issues (multiple accounts under different names)
- Chargebacks or payment disputes
- Previous warning or temporary suspension
What to do:
Step 1: Secure your data immediately
Permanent bans are very hard to reverse. Priority isn’t fighting the ban—it’s preserving your ability to release music elsewhere.
Export:
- All metadata (titles, ISRCs, UPCs, release dates, credits, splits)
- Financial records and payout history
- Contracts, ToS, correspondence
- Screenshots of catalog and dashboard
Once they close your account, you might lose access permanently.
Step 2: Review termination letter and contract
Look for:
- Stated reason for termination
- What happens to unpaid royalties
- Any exclusivity or non-compete language
- Dispute resolution clauses
Step 3: Decide if fighting is worth it
Ask yourself:
- How much money is at stake? (Under $500-1,000 probably not worth legal action)
- Do you have strong evidence you didn’t violate ToS?
- Is this your primary income or side project?
If you decide to fight, options include:
- Formal appeal to a manager (with documented evidence)
- Consulting an entertainment lawyer (for significant amounts)
- Filing complaints with Better Business Bureau or Attorney General
Step 4: Plan your next move
Assuming the ban stands:
- Wait 30-90 days for any disputes to resolve
- Choose new distributor with better transparency
- Re-upload catalog using same ISRCs and UPCs
If platforms have blacklisted your content (not just the distributor), you might need to release under a new artist name or focus on non-streaming revenue (Bandcamp, sync licensing, physical sales, Patreon).
How to Avoid Getting Flagged in the First Place
The best crisis management is never having a crisis. Here’s how to minimize your risk.
Red flags for promo services to avoid:
- Guaranteed stream counts (“We guarantee 50,000 Spotify streams!”)
- Suspiciously cheap prices ($0.005 per stream)
- Vague language about their “network” or “methods”
- Operating on anonymous channels (Telegram, WhatsApp) with no website
- Asking for your Spotify for Artists login or distributor access
Safer promotional strategies:
- Direct advertising (Facebook/Instagram Ads, TikTok Ads, Google Ads) - transparent reporting, verifiable traffic
- Playlist pitching with named curators and public playlists
- PR and blog outreach - creates discoverable backlinks
- Building your own audience (email lists, social media, YouTube, Patreon)
Due diligence before hiring any promo service:
Ask:
- Can I see examples of campaigns you’ve run for other artists?
- Can you provide detailed reports showing where streams/traffic come from?
- What’s your refund policy if I get flagged?
- Do you guarantee any specific numbers? (If yes, walk away)
Google the company name + “scam” or “fraud” and read what other artists say on Reddit or forums.
Documentation habits that save your account:
- Keep a promo log spreadsheet - Campaign dates, platform, spend, target geography, expected vs actual results
- Save invoices and receipts - Even $10 Facebook ad spends
- Screenshot ad dashboards - Targeting settings and performance metrics
- Track organic viral moments - Screenshot the original post, URL, timestamp, timeline of viral moment vs stream spike
- Keep DAW projects backed up - Proves ownership if copyright issues arise
- Save distributor ToS versions - They can change retroactively; your signed version still matters
Your Legal Rights and When to Escalate
Disclaimer: This isn’t legal advice. Consult an entertainment attorney for serious disputes.
What distributors CAN do (usually):
- Terminate your account at their discretion (per ToS)
- Hold royalties during investigations (often no time limit specified)
- Forfeit royalties if they determine ToS violations (enforceability varies by jurisdiction)
- Require identity verification before payouts
What they CANNOT do (in most jurisdictions):
- Keep your money with zero justification or investigation
- Refuse to provide contractual basis for their actions
- Change terms retroactively to justify current holds
- Violate consumer protection laws in your jurisdiction
When to escalate:
Non-legal escalations:
- Second-level support after multiple ignored tickets
- Formal written complaint referencing contract language
- Better Business Bureau complaint (US-based distributors)
- State Attorney General consumer protection division
- Social media (measured, factual account of situation)
Legal escalations:
- Initial paid consultation with entertainment lawyer ($200-500)
- Demand letter on law firm letterhead
- Small claims court (if amount is under your state’s limit, usually $5,000-10,000)
- Arbitration (if required by contract)
Cost-benefit reality check:
Hiring a lawyer costs $200-500/hour. Legal action can easily cost $2,000-10,000+. If your frozen royalties are under $1,000-2,000, legal action probably isn’t cost-effective. Sometimes walking away and starting fresh with a better distributor is the smartest financial decision.
Questions Everyone Asks
Can distributors legally keep my royalties?
Most contracts include clauses allowing them to hold or forfeit royalties if they believe fraud occurred, sometimes based only on allegations. Enforceability depends on contract language, local law, and whether they can actually prove claims.
What should I do first if my account is terminated?
Document everything immediately (screenshots, downloads, evidence), secure all reports and metadata before losing access, and send one clear support ticket requesting specific information about the freeze and your royalties.
Can I move my catalog to another distributor after a ban?
Usually yes, once disputes are resolved. Use the same ISRCs and UPCs to preserve streaming stats. However, some platforms associate fraud flags with your identity, so underlying issues must be resolved first.
How long can they hold my royalties?
Contract language varies, but “temporary” holds often stretch 30-90 days or longer. There’s usually no defined maximum and no penalty for delays.
Should I hire a lawyer?
Only if money at stake exceeds $2,000-5,000 and you have strong evidence. Initial consultations cost $200-500. Full legal action can cost $2,000-10,000+. Do the math on whether it’s worth it.
Final Thoughts
I’ve spent six years tracking distributor account terminations, and here’s what I know: the system is stacked against independent artists. Distributors have all the leverage, platforms prioritize fraud prevention over fairness, and you’re guilty until proven innocent.
But knowledge is power. Understanding why distributors make these decisions, documenting your promotional activities from day one, and knowing exactly what to do in a crisis dramatically improves your odds.
For artists choosing distributors in 2026, transparency and account protection should matter as much as pricing. Read the ToS carefully. Look for distributors with clear appeals processes and responsive support. Avoid anyone with predatory forfeiture clauses.
And remember: prevention beats crisis management every time. Vet your promotional services, document everything, and build your audience through transparent channels. Your music career is too important to risk on shortcuts.
Whether you’re researching distributors for your first release or fighting to recover frozen royalties right now, you now know exactly what you’re up against—and what to do about it.
Updated January 2026 based on current distributor policies and analysis of 100+ documented account termination cases. Policies change frequently, so verify specific terms with your distributor before submission.