Reddit, the popular social media platform, has been confronted with a new challenge as ransomware gang BlackCat, also known as ALPHV, took responsibility for a targeted phishing scheme that occurred earlier this year. The attack exposed internal documents, code, contracts, and sensitive information belonging to some advertisers, as well as current and former employees. Although the compromised data has not been made public yet, BlackCat has announced that it possesses 80GB of compressed data and is demanding a ransom of $4.5 million from Reddit. Additionally, the gang is insisting that Reddit reverses the recent API price increases that have sparked widespread discontent among users.
The responsibility was claimed at a time when Reddit is already in a state of chaos
BlackCat’s scheme involved tricking employees into visiting a website that closely resembled Reddit’s intranet gateway through plausible-sounding prompts. By stealing login credentials and second-factor tokens from an individual who fell for the trick, the hackers gained access to the sensitive information. Fortunately, Reddit has assured users that their personal data has not been compromised during this breach.
The timing of BlackCat’s announcement is significant, coinciding with widespread protests against the API price hikes that have disrupted the Reddit ecosystem. The increased costs associated with the API changes have led to the closure of popular third-party apps such as Narwhal and Apollo. Christian Selig, the creator of Apollo, estimates that it would cost him $20 million annually to continue operating under the new pricing structure. Developers fear that the loss of these third-party apps may result in increased censorship and limited opportunities for growing ad revenue.
In response to the protests, Reddit’s CEO, Steve Hoffman, has stood firm on the API price increases, arguing that users are unhappy because they are no longer receiving services for free. Furthermore, Hoffman has suggested implementing easier methods for removing moderators who make unpopular decisions. While Reddit shows no indication of reversing its decision, some advertisers have paused their activities on the platform in solidarity with the ongoing blackouts.
As Reddit grapples with the situation, it faces mounting pressure from both external threats and disgruntled users. The next moves made by the platform will undoubtedly shape its future and determine the extent of its user base and advertiser support in the coming months.
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(Via)
