Spotify’s streaming fraud issue runs so deep that Kalshi traders are profiting from rigged charts


Spotify has removed more than half a million streams from Malcolm Todd’s song “Earrings” after finding suspected bot activity, according to a report by Financial Times.

The track, first released in 2024, suddenly rose to No. 1 on Spotify’s daily U.S. chart after a sharp jump in streams. At the same time, traders on prediction market Kalshi had been betting on whether Todd would land a No. 1 song on Spotify USA before the end of June. There is no suggestion Todd or his team were involved in any attempt to boost the song’s numbers. Kalshi has said it is investigating the matter.

A chart move became a payout

According to the report, U.S. streams of “Earrings” jumped almost 70% between Sunday and Monday. Spotify later removed streams it believed were initiated by bots, which are designed to play tracks repeatedly and make them appear more popular than they are.

After the correction, “Earrings” fell to fourth place on Spotify’s U.S. chart for Monday. Kalshi, however, had already paid out traders who bet on Todd reaching No. 1 before the end of June. According to the Financial Times, traders who backed the long-shot outcome could have made roughly 20 times their initial wager.

Can Spotify keep its charts clean enough?

Spotify has dealt with fake streams for years, usually as a royalties and chart integrity issue. Now, it has another problem to worry about, since those same charts can be used to settle prediction-market bets.

Spotify’s spam problem also goes beyond music streams. Earlier this year, the company removed tens of thousands of fake podcast episodes tied to illegal online pharmacies and scam websites. Music streaming fraud has become more sophisticated too. Prosecutors previously charged Michael Smith in an AI-assisted streaming fraud case involving bots and billions of artificial plays. He later pleaded guilty.

Spotify says it has “best-in-class” systems to detect and reduce fake streams, and does not pay royalties on manipulated plays. Kalshi says it is in touch with Spotify and is investigating, but the companies are not exactly aligned. Spotify’s legal team reportedly asked Kalshi to remove its logo from the app and website, and Kalshi has added a disclaimer saying its products are not endorsed by Spotify.



Source link

Leave a Reply

Subscribe to Our Newsletter

Get our latest articles delivered straight to your inbox. No spam, we promise.

Recent Reviews


TL;DR

Meta stripped NameTag facial recognition code from its AI app one day after WIRED exposed it on 50 million phones. Meta says no decision has been made.

Meta removed nearly all traces of an unreleased facial recognition system from its smart glasses companion app on Friday, one day after WIRED reported that the software had been quietly embedded in an app installed on more than 50 million phones. The feature, which Meta internally called NameTag, was designed to convert faces captured by the company’s Ray-Ban smart glasses into unique biometric signatures and compare them against a database stored on the user’s device. WIRED also found that faces the system failed to recognise were cropped, indexed, and stored locally for future processing.

Andy Stone, Meta’s vice president of communications, told WIRED on Monday that the feature is “purely exploratory,” adding that no final decision has been made on what to do with it. That characterisation sits uneasily with the evidence WIRED documented. The version of Meta AI published the day of WIRED’s Thursday report contained several code libraries explicitly named for face recognition, a process for running the NameTag recognition pipeline, and a “Person recognised” alert the app would have shown if someone were identified.

Friday’s release stripped all of it out, along with a folder where the app would have stored the cropped images and biometric signatures of unrecognised faces. Meta did not answer WIRED’s questions about why the code was removed or whether the changes were planned before the story was published. A few fragments remain in the latest version, including an internal debug menu label and a dormant link meant to open a recognised person’s profile, pointing to parts of the system that are no longer there.

The 💜 of EU tech

The latest rumblings from the EU tech scene, a story from our wise ol’ founder Boris, and some questionable AI art. It’s free, every week, in your inbox. Sign up now!

The gap between Meta’s public statements and the code WIRED found is the central tension. Before the Thursday report, Stone dismissed the findings by writing that the company could not answer questions about how the system would work because “the feature does not exist.” Andrew Bosworth, Meta’s chief technology officer, called the reporting “incredibly misleading” and “absolutely dishonest.” Yet the code was functional enough to include three AI models, one to detect faces, another to crop them, and a third to encode them as biometric data, all embedded in the companion app for a product already at the centre of a mounting privacy crisis.

Meta declined to answer ten questions WIRED posed before publishing, including whether it had already created the database of face profiles NameTag uses, how long the app retains photographs and biometric data of unrecognised people, and whether that data would ever be sent back to Meta’s servers. The company also did not respond to questions about whether it was building NameTag for blind or low-vision users, or to criticism from privacy advocates who warned the system could let stalkers and abusers identify strangers in public.

NameTag first surfaced in February, when The New York Times, citing internal Meta documents, reported that the company was developing face recognition for its smart glasses and considering a launch as early as this year. One internal memo reportedly described releasing the feature during a “dynamic political environment” when privacy and civil liberties advocates would be distracted by other concerns. WIRED subsequently found that much of NameTag’s machinery had been built into the Meta AI app as early as January, months before any public acknowledgement, adding another layer to the company’s pattern of shipping first and disclosing later when it comes to its smart glasses.

Kade Crockford, director of the technology for liberty programme at the American Civil Liberties Union of Massachusetts, said the removal does not undo the original decision to ship the code and pointed to it as evidence that consumer privacy needs stronger legal protection than Congress has been willing to provide. The Massachusetts House of Representatives last week unanimously passed a consumer privacy bill that, if enacted as written, would impose strong enforcement provisions including a private right of action allowing aggrieved users to sue. “State lawmakers need to do their job and step up to protect consumer privacy,” Crockford said.

Meta’s sneaky tactics in slipping the face-recognition code into its smart glasses show exactly why data privacy bills need the teeth of strong enforcement,” Crockford added. “Companies like Meta prioritise their bottom line, so lawmakers need to speak in the only language its C-suite understands.” Whether a code removal prompted by investigative reporting constitutes a victory or merely a tactical retreat depends on what Meta does next, and on whether the regulatory pressure building on both sides of the Atlantic produces enforceable consequences before the feature quietly returns under a different name.



Source link