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Spotify detected over 2 million people using hacked versions of their app to dodge ads

On a recent amended SEC IPO filing, Spotify says they have detected “instances of approximately two million users” using hacked apps to avoid ads on their platform as of December 31, 2017.

Spotify said their business model is “at risk of artificial manipulation of stream counts and failures to effectively manage and remediate such fradulent streams could have an adverse impact on our business, operating results, and financial condition.”

Two million unauthorized users may not seem much compared to Spotify’s 157 million legitimate users but their actions could still be taking a sizable bite out of the company’s revenue.

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