Bluesky Scam Scandal: Extortion, Impersonation, and Moderation Mayhem
A significant fraud scandal has erupted on the social media platform Bluesky, where malicious actors orchestrated an extortion scheme targeting journalists, entrepreneurs, and other prominent figures by exploiting their domain names.
The incident came to light when Bloomberg journalist Conor Sen revealed that he had fallen victim to extortion. An unidentified user purchased a domain associated with his name and demanded a hefty ransom for its return. The situation worsened when a fraudulent account impersonating The Hustle founder Sam Parr defended the act as a legitimate business transaction rather than extortion.
When the real Sam Parr intervened, the fraudster employed multiple fake accounts to discredit him. Moderation errors on Bluesky exacerbated the issue: Parr’s genuine account was temporarily suspended, while the counterfeit ones remained active.
The fraudster expanded their campaign, targeting other prominent individuals, including blogger Matt Yglesias and entrepreneurs Alex Lieberman and Sahil Bloom. The scheme primarily preyed on business figures and investors who had not secured their domain names. Although many fake accounts were eventually removed, the incident underscored the platform’s vulnerabilities.
Bluesky employs domain-based verification, but this strategy proved ineffective in this case. While cybersquatting has been illegal in the United States since 1999, enforcing rights often requires costly legal action. Users face significant risks if they fail to register domains associated with their names.
The scandal exposed critical flaws in Bluesky’s moderation system. The platform’s response was sluggish, allowing fraudulent accounts to remain active for over 24 hours despite numerous user reports. Sen noted that resolving the issue required publicly drawing the attention of Bluesky’s leadership.
Experts argue that Bluesky must reevaluate its verification processes and strengthen its moderation mechanisms. Failure to address these shortcomings could jeopardize the platform’s credibility and alienate key users.
