Spotify confirms streaming fraud after prediction market alerts

Spotify, the music streaming giant, has confirmed it investigated and found evidence of artificial streams on its platform. The confirmation came after a user on the prediction market Kalshi flagged suspicious activity related to a song's chart performance.

Caleb Davies, a prominent trader on Kalshi, noticed an inexplicable surge in streams for Malcolm Todd's song "Earrings," propelling it to the number one spot on a Spotify chart. Davies argued that the rapid ascent was statistically improbable without the use of bots to inflate streaming numbers, potentially to influence prediction market outcomes.

Spotify confirmed to WIRED that it investigated the incidents Davies reported and discovered evidence of manipulated streams. A spokesperson stated that Spotify employs "best-in-class detection and mitigation practices for manipulated streams" and does not pay royalties for them.

Following the investigation, Spotify adjusted its charts, removing over 500,000 artificial streams. This adjustment moved "Earrings" from first place to fourth. However, Kalshi had already settled its related market based on the initial, manipulated data.

Both Kalshi and Polymarket, another prediction platform mentioned, stated they are reviewing the situation and cooperating with Spotify. Kalshi has removed Spotify's logo from its markets at the streaming company's request. The motivations of those behind the streaming manipulation remain unclear.