Elon Musk’s social media platform X has confirmed that it is investigating a wave of suspicious password reset requests targeting multiple accounts. That’s because after the launch of X Money, those accounts now hold financial value.

X Money, X’s payment service that allows users to send money instantly to others on the platform, has long been touted by Musk as a way to live without a bank account. It was launched only a month ago.

But it’s moving fast – this week, X announced that all of its US creator payouts would be handled through X Money. Until recently, the payout method was powered by Stripe, which will now only handle creators outside the US.

The service is attracting a lot of attention for offering a variety of perks, such as up to 6% interest on eligible deposits and instant payments.

Promises to pursue scammers

However, cyberattackers aren’t sleeping, either. After numerous X users reported receiving unsolicited password reset emails, a firm representative confirmed the company was investigating the issue.

“Attackers appear to believe that, now that @XMoney is widely available, they can gain unauthorized access to accounts,” wrote X product engineer Mridul Singhai.

“We are actively investigating the issue and, so far, have found no evidence of any breaches. We apologize for the multiple emails and appreciate your patience as we work to resolve this.”

Even Todd Blanche, the US Attorney General, spoke up, writing on X that the Department of Justice “will stop at nothing” in its pursuit of cyber fraudsters and scammers.

“We are working closely with X to track down the criminals behind this week’s attack. There is no refuge for those who perpetrate their criminal schemes from behind computer screens,” said Blanche.

For good measure, X general counsel James Burnham warned: “Don’t mess with X.” He added that the company’s legal and security teams would pursue those responsible for attempting to compromise user accounts.

One possible explanation for this wave of password reset requests is that X Money has given at least some compromised accounts newfound financial value.

Popularity might turn into more issues

Besides, critics have long said they’re concerned about the expansion of financial services on social platforms, especially X, because they simply don’t trust Musk as a responsible player in the fintech industry.

If your track record operating X is any indication of how you’ll operate X Money, consumers, our national security, and the stability of the financial system may be at risk,

US Senator Elizabeth Warren (D-Mass.), ranking member of the Senate Banking, Housing, and Urban Affairs Committee, wrote to Musk in an open letter.

“Your failure to operate X in a safe and responsible manner does not breed confidence in your ability to safely expand into consumer finance.”

Ron Shevlin, chief research officer at Cornerstone Advisors, agreed, writing on LinkedIn: “Musk has a history of jumping the gun with product announcements and timelines. That pattern matters when you’re asking people to deposit real money somewhere.”

In the letter, Warren also raised alarm over X’s record of allowing sanctioned individuals, including those from Hezbollah and the Houthis, to purchase verified accounts and raise funds on the platform.

Last year, the Tech Transparency Project said that terrorist organizations and their members sanctioned by the US could still freely buy X’s blue check marks.

X claims that every card transaction is protected by Visa’s security and risk management capabilities, and funds are eligible for FDIC insurance of up to $10 million through its Cash Sweep Program.

However, since Musk drastically reduced the headcount at X after acquiring the platform in 2022, its limited support teams could struggle to keep up with issues related to X Money if the service proves popular.

Indeed, most banks maintain large dispute-resolution teams to handle numerous calls and complaints and ensure that customers aren’t cut off from their money.

A bunch of X users already complain that it’s difficult to get the company to investigate terms-of-service violations or reverse mistaken account suspensions.

X Money’s FAQ says that users must quickly report unauthorized transactions or lose the funds.

“Your liability for unauthorized electronic fund transfers may depend on how quickly you report the issue after discovering it,” the platform says.

This essentially means that even when making debit purchases with Visa’s backing, X can’t guarantee that users will be refunded for all fraudulent charges.