Dark Side of AI Influencer Marketing: a16z-Backed Company Hacked

Startup company Doublespeed, backed by renowned venture capital firm a16z, was recently hacked. The company manages hundreds of AI-generated social media accounts through ‘phone farm’ technology to promote products on platforms like TikTok. Hackers successfully breached the system, revealing the products promoted by these AI accounts and discovering that most were not properly labeled as advertisements. More concerning is that hackers still have access to the company’s backend systems, including the ‘phone farm’ controlling over 1,000 smartphones. This incident has raised concerns about transparency and compliance of AI-generated content on social media, while also exposing serious cybersecurity vulnerabilities. Hackers reported the vulnerability to the company on October 31, but as of now, the company has not responded. This incident reveals the potential misuse of AI technology in social media marketing and the lack of relevant regulation.