X (Former Twitter) Reduces Verification Pricing Amid Crypto Scam Exploitation
Summary:
X (previously known as Twitter) reduced its pricing for verified 'gold check' organizations following a report indicating exploitation of these accounts for cryptocurrency scams. Cybersecurity firm CloudSek found that threat actors specifically targeted gold check accounts to engage in large-scale malicious campaigns. As the malicious activities escalated, X lowered the price for gold checkmarks from $1,000 to $200 monthly under a 'basic' plan - a move speculated to gain more paid subscribers. However, it was revealed that scammers utilized inactive accounts, converted them to gold accounts, and abused the verification system for cryptocurrency scams. Other public figures' accounts have also been hacked to advance digital currency scams previously, putting high-profile platforms like X at risk.
Once known as Twitter, X has decided to revise its pricing strategy for verified organizations on the platform. This decision follows a report that indicated that authenticated 'gold check' accounts were being exploited to promote cryptocurrency scams. The report, dated January 3rd, was compiled by Rishika Desai from cybersecurity company CloudSek. The study showed that threat actors were specifically targeting X accounts that opted for gold check verification, a service available to purchase for $1,000 per month beginning in March 2023. She stated that large-scale harmful campaigns necessitating a 'gold' X account were surfacing, plotting against X users through employment and cryptocurrency frauds.
The CloudSek research team managed to discover such accounts on X, distinguished by a golden tick, that posted links leading to malicious domains. These domains, across various platforms, were persuading their followers to become part of random crypto-based channels.
On January 2nd, X stated that they would reduce the price of gold checkmarks from $1,000 to $200 monthly under a 'basic' plan. Many conjectured that this price cut might be a move to increase the number of paid subscribers. Reports suggest that the platform's estimated value was around $19 billion in October 2023, less than half of what Elon Musk paid a year earlier.
CloudSek revealed that numerous fraudsters hijacked inactive or unused X accounts, upgraded them to gold status, and exploited the verification process to further their crypto scams. Some even offered to sell the account to others via the internet for up to $2,500. With the growing popularity of digital currencies, prominent platforms, including X, have been targeted by scammers using diverse tactics to scam users out of their resources, including cryptocurrency. In the past, hackers have successfully compromised accounts belonging to high-profile personalities like U.S. President Joe Biden, Ethereum co-founder Vitalik Buterin, among others, to propagate Bitcoin and other digital currency scams.
Published At
1/8/2024 9:15:00 PM
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