Elizabeth Lopatto, writing at The Verge:

To understand how this works, you need a sense of the mechanics. Streaming platforms like Spotify don’t work like your Facebook page — Mena and other artists aren’t logging in and adding albums to their accounts directly. Instead, they go through a distributor that handles licensing, metadata, and royalty payments. Distributors send songs and metadata in bulk to the streaming services. The metadata part is important; it includes things such as the song title and artist name but also other information, such as the songwriter, record label, and so on. This is crucial for artists (and others) to get paid. 

But this whole process effectively works on the honor system.

And:

“It was super weird,” says Marcos Mena, Standards’ lead songwriter and guitarist. “I thought, ‘Oh, this is something Spotify will take care of.’” After all, Standards has a verified artist page. But when a fake album was posted on September 26th, it didn’t budge. Mena emailed Spotify to tell them there’d been a mistake. The streamer responded two weeks later, on October 8th: “It looks like the content is mapped correctly to the artist’s page. If you require further assistance, please contact your music provider. Please do not reply to this message.” As of November 8th, the fake Standards album was still right there under the band’s verified, blue-checked name. It was finally removed by November 11th.

Cool, I definitely don’t see this continuing to be a massive problem.