X warns of potential hacking attempts following X Money launch and password reset email surge

X has revealed that hackers could be trying to attack users after the launch of X Money.

This follows several X users receiving surprise password reset emails. Although the social media giant has been looking into the issue, there is no evidence so far that these attack attempts were successful.

It is believed that attackers could be mass-triggering the form for password resets using public usernames

X Money, the platform's payments service, launched on an invite-only basis in July before expanding to all Premium and Premium+ subscribers on 31 August.

It allows users to hold money, make and receive payments, as well as carry out peer-to-peer transfers, all on the X platform.

As such, any access that attackers may get to these users' accounts could have significant financial implications.

The company's general counsel, James Burnham, highlighted that "the legal and security teams @X will stop at nothing to identify, locate, and hold criminally accountable any person anywhere on or off earth who attempts to victimize our platform's users."

This has led to a flood of users taking to the platform to both spread awareness that this is happening and also remind others to use two-factor authentication, if they aren't already, for an added layer of protection.

The social media platform's Grok chatbot has also chimed in, replying to some posts with practical measures users can take to do so.

Could this be hiding a more dangerous phishing attack?

Although receiving an email for a supposed password change request doesn't automatically mean your account has been breached, especially if you have multi-factor authentication, some users are concerned that this latest incident could be hiding a wider phishing attempt.

Several users have also claimed that follow-up phishing emails have been sent out, along with these password reset confirmation emails. These have been framed as legitimate emails coming from X, which has added to the confusion and fear.

These emails have been urging users to change their passwords, which is an expected follow-up after a security breach. However, they include a fake X link for users to do so, which can trick them into providing their login credentials to attackers.

As such, this is more likely to be an elaborate multi-step hacking and phishing attempt than previously expected.

X Money has already faced scrutiny for its reliance on partner banks like Cross River Bank, due to past regulatory enforcement actions against the bank, as well as the underlying reasoning behind the promotional 6% yield on deposits, compared to federal benchmarks.