Local Files feature - Is it being used to prevent monetary compensation to artists?

[Minnimin99]

There is an emerging trend I've seen some Spotify users post about on other platforms where users will illegally download tracks via shared Google Drives and then use the Spotify Local Files feature to play the tracks. The users tout doing this in combination with the Listen Offline function. They believe by doing this it will prevent any form of monetary compensation from being paid to the artists/labels via streaming the tracks from the artist's profile. Although the Spotify Rules state that users can "use the app to play any of the audio files legally stored on your device" it seems they can still bypass the "legally" part.

I wonder what Spotify can do to improve this feature to prevent abuse? I don't suppose there is anything in the metadata of a download that can tell if it's been downloaded via an official or unofficial sound source? Or can Spotify detect the Artist Name/ Track Name and attribute streams and compensation for playing it this way? I hope that the feature can be improved to better support artists.