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  • Writer's pictureJerry Ipsen, CFE, MBA

Record Label Scams: How To Spot Fake Record Labels

Record producers need to be on the lookout for record label scams. Buster Bennett of the London Sound Academy tells us there are many fake record labels being created for the sole purpose of taking advantage of uninformed newcomers to the industry. In fact, Bennett has written a guide on how to discern good record labels from the record label scammers. 

With the growing popularity of electronic/digital music, many performing DJs have been trying their hand at music production with the goal of securing a record label that would provide them with representation and an avenue for distribution. Remember, where there’s money to be made, you can rest assured a fair number of unscrupulous individuals will be doing their darndest to create fraudulent ways, one being fake record labels with the sole purpose of separating you from your money.

These scam artists know how the music industry operates and without a second thought will prey on those new to the business. Be especially cautious of those wearing fancy clothes and using industry-related lingo to make themselves look and sound important. The proof in what I say comes when you first conduct a background check as part of your own due diligence process.  

Bennett informs the reader of three scams circulating in the world of fake record labels to be on the lookout for. In his article “How to Spot Fake Record Label Scams,” Bennett details the scams along with the red flags of each.  Without a doubt, I would characterize his guide/article as “required reading.” By committing these important words to memory, I believe in due time you’ll be able to release your own music with confidence. The areas Bennett points out that raise concern and require specific attention on your part include:

-The minimum sales scam

-Pay to produce, release or promote

-Unrealistic contracts.

Ipsen Due Diligence working as a Financial Fraud Investigator often works with Private Detectives when the need arises to perform background checks looking into the (criminal and civil) records of someone wanting to be a part of your organization or asking for money.

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