Connect with us

Technology

Social media verification systems lose power as scammers purchase checkmarks to appear legitimate

Published

on

Social media verification systems lose power as scammers purchase checkmarks to appear legitimate

NEWYou can now listen to Fox News articles!

Social media makes it easy to connect with people, but it also makes it just as easy for fraudsters to pretend they are someone they are not. Fake accounts, misleading checkmarks and smooth-talking profiles are everywhere, and not everyone knows how to spot them. I recently received an email from Marie from Boynton Beach, Florida, with a similar concern:

“I have been on X, and it seems quite a few people turn out to be not who they say they are. Mostly the ones that are verified. I am not that good tech-wise. Is there a way other than me knowing immediately they are a fraud?? Thank God I am not the type to give personal information or money.”

It is a fair concern, Marie. With scams becoming more polished, the line between real and fake accounts is harder to see. Let’s break down why fraud is so common on social media, the red flags you should look out for, and the simple habits that can keep you from getting duped.

Sign up for my FREE CyberGuy Report
Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you’ll get instant access to my Ultimate Scam Survival Guide – free when you join my CYBERGUY.COM newsletter.

Advertisement

WHATSAPP BANS 6.8M SCAM ACCOUNTS, LAUNCHES SAFETY TOOL

A man logs into his social media account on a laptop. Fraudsters often exploit online activity to trick users. (Kurt “CyberGuy” Knutsson)

Why social media is a playground for scammers

Social platforms are built for speed and visibility. Anyone can create an account in minutes, post content instantly and connect with strangers worldwide. This openness is what makes social media engaging, but it is also what makes it ripe for abuse. Fraudsters exploit the fact that posts, comments and messages are consumed quickly and often without much scrutiny.

Verification systems that were once meant to help users identify legitimate accounts have also lost some of their power. On platforms where checkmarks can be purchased, scammers can buy credibility without earning it. Add in the algorithms that reward viral content and sudden spikes in engagement, and you get the perfect environment for fraud to spread unnoticed.

Scammers know people often lower their guard on social media. In these spaces, users share personal details, build emotional ties with influencers and trust posts that look familiar. As a result, the combination of speed, trust and visibility creates an ideal environment for fraud to spread rapidly.

Advertisement

META DELETES 10 MILLION FACEBOOK ACCOUNTS THIS YEAR, BUT WHY?

A woman browses social media on her laptop. Scammers use fake accounts and misleading profiles to lure victims. (Kurt “CyberGuy” Knutsson)

The cost of falling for a scam

When people think of scams, they often imagine losing a one-time sum of money. The reality is far more damaging. Clicking a bad link or handing over credentials can snowball into long-term consequences. Once scammers get access to your information, it can be sold on dark web marketplaces, used to open fraudulent accounts or leveraged for identity theft.

There is also the reputational cost. If your social media account is hijacked, scammers can use it to trick your friends, family or followers, spreading fraud even further under your name. Cleaning up that mess can take weeks and may permanently damage your credibility.

Social media apps are prime hunting grounds for scammers who rely on speed and trust to deceive victims. (Kurt “CyberGuy” Knutsson)

Advertisement

Practical steps you can take to stay safe on social media

There are simple ways to protect yourself without needing technical expertise. I have listed some of the crucial steps below.

1) Scrutinize profiles before engaging

Fake accounts often have clear giveaways. Look at how long the account has existed, whether it posts original content and the kind of followers it has. Scammers usually recycle generic profile photos or steal images from real people. Reverse image searches can help you confirm if a photo belongs to someone else.

Even with verification, be skeptical. On platforms where checkmarks can be purchased, anyone can appear “official” without being trustworthy. Treat every new interaction with caution until proven otherwise.

FACEBOOK CRYPTO ADS LEAD TO DANGEROUS MALWARE SCAMS

2) Avoid clicking on random links

Fraudsters often send links over DMs, comments or even ads. These links may lead to phishing sites designed to steal your credentials or malware that installs silently on your device. One careless click can expose your information.

Advertisement

This is where having strong antivirus software comes in. Even if you accidentally land on a malicious site, a strong antivirus can block harmful downloads and warn you before malware runs. Think of it as a safety net for moments when curiosity gets the better of you.

The best way to safeguard yourself from malicious links that install malware, potentially accessing your private information, is to have strong antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe.

Get my picks for the best 2025 antivirus protection winners for your Windows, Mac, Android and iOS devices at Cyberguy.com/.

3) Protect your logins

Phishing scams frequently mimic login screens for X, Instagram or Facebook. They are designed to trick you into typing your username and password into a fake form. Once you do, the scammer immediately takes over your account.

A password manager can be a lifesaver here. It only fills in your login details on the genuine site you have saved. If it does not recognize the page, that is a red flag that you are looking at a fake. On top of that, a password manager makes it easier to use strong, unique passwords for each account, which limits damage if one gets compromised.

Advertisement

Next, see if your email has been exposed in past breaches. Our No. 1 password manager pick includes a built-in breach scanner that checks whether your email address or passwords have appeared in known leaks. If you discover a match, immediately change any reused passwords and secure those accounts with new, unique credentials. 

Check out the best expert-reviewed password managers of 2025 at Cyberguy.com/.

4) Keep personal info under wraps

The less information fraudsters can find about you, the weaker their scams become. Many impersonators use details like your hometown, job or relatives to build trust. If your email, phone number or address is floating around the web, scammers can weaponize that too.

A personal data removal service can help here by scrubbing your details from people-search sites and data brokers. While not foolproof, reducing your digital footprint makes you a harder target for impersonation or social engineering scams. They aren’t cheap, and neither is your privacy. These services do all the work for you by actively monitoring and systematically erasing your personal information from hundreds of websites. It’s what gives me peace of mind and has proven to be the most effective way to erase your personal data from the internet. By limiting the information available, you reduce the risk of scammers cross-referencing data from breaches with information they might find on the dark web, making it harder for them to target you.

Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting Cyberguy.com.

Advertisement

Get a free scan to find out if your personal information is already out on the web: Cyberguy.com/.

SOCIAL SECURITY ADMINISTRATION PHISHING SCAM TARGETS RETIREES

5) Stay alert to impersonation scams

Fraudsters often pretend to be well-known figures, influencers or even customer support staff. They use urgency like “limited offer,” “you have won” or “your account will be closed” to pressure you into responding fast.

When money, gift cards or personal details are involved, slow down. Contact the real brand or person through official channels to verify. If you are unsure, simply ignore the request.

6) Trust your instincts

One of the strongest defenses you have is your gut feeling. If a verified profile is asking for money, if a giveaway sounds too good to be true or if someone’s tone feels off, it probably is. Scammers rely on you ignoring that little voice that says something is not right.

Advertisement

Take a breath, pause and think before you act. That moment of hesitation often makes the difference between staying safe and becoming a victim.

Kurt’s key takeaway

Social media can be entertaining, informative and even empowering, but it is also one of the easiest hunting grounds for fraudsters. They thrive on speed, trust and distraction, hoping you will react before you think. While no tool or habit can guarantee absolute safety, combining skepticism with smart protective steps puts you in a much stronger position.

Do you think paid verification badges make it harder to spot scammers? Let us know by writing to us at Cyberguy.com/Contact

Sign up for my FREE CyberGuy Report
Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you’ll get instant access to my Ultimate Scam Survival Guide – free when you join my CYBERGUY.COM newsletter.

Advertisement

Copyright 2025 CyberGuy.com. All rights reserved.  

Technology

Ikea tried to build a smart home for everyone — here’s why it’s not working yet

Published

on

Ikea tried to build a smart home for everyone — here’s why it’s not working yet

Ikea’s new Matter-over-Thread products were supposed to prove that the smart home could be cheap, accessible, and reliable. The highly anticipated line — which includes sensors, remotes, smart plugs, air-quality monitors, and smart bulbs — has most everything you need to build a smart home, with prices starting at $6. It’s an exciting idea, but it’s still not ready for primetime.

When I first got the Ikea devices in January, I had a lot of problems connecting them to my main platform, Apple Home. And it turned out I was not alone. Reddit forums and user reviews were full of reports of onboarding and connectivity issues. Many people were struggling to get devices connected to every smart home platform — from Apple Home to Google Home, and even Ikea’s own Dirigera hub. YouTuber Shane Whatley documented his experience trying to onboard to Apple Home in real time, and it’s fairly painful to watch.

While I waited for Ikea to figure out what was up, I tried some more creative troubleshooting in my home. The only (admittedly odd) fix I found was to force Apple Home not to use my main Home Hub, an Ethernet-connected Apple TV. Instead, I told it to use a HomePod, and was able to onboard an Ikea Bilresa button and a Grillplats smart plug that had repeatedly failed to connect. (Hat tip to Whatley for this idea.)

Why Apple would prefer I not use my high-powered, hardwired Home Hub is anyone’s guess. In any case, it didn’t last long. When I tried to add a Myggspray motion sensor as well, it failed. I then tried connecting the same Myggspray to Google Home using an Android phone, and it joined on the first try. Admittedly, I have a complicated network, but this points towards Apple causing issues, not my setup.

While Ikea said that “the products work seamlessly” for most customers, it did acknowledge the problems “some users” were experiencing. It published a troubleshooting page, and online forums quickly filled with advice on getting the gadgets connected. These range from simple “restart your phone” to the inexplicable “just leave it alone for a few days, and then it will work” to the more complicated “dive into your internet router’s network settings and enable IPv6” (Thread and Matter run over IPv6).

Advertisement

I had the most trouble connecting this Bilresa two-button remote to my smart home — and I was not alone.
Photo by Jennifer Pattison Tuohy / The Verge

One intrepid smart home reviewer, A Smarter House, painstakingly combed through all the proposed fixes and tried as many as he could on as many platforms as possible. This excellent deep dive by the YouTuber and blogger goes through the issues and what he tried that worked. His conclusion: There is not a single problem, but multiple, and the problems differ depending on the platform you are using.

Over the last few weeks, Ikea has rolled out several updates to its Dirigera hub to improve Matter-over-Thread stability and updated the troubleshooting page with more potential fixes. Ikea initially pointed to “users’ varying and sometimes complicated home networking setups,” something that’s difficult to replicate in a lab. And sure, individual network setups are often problematic. But the widespread nature of the issues points to something bigger: a problem with the core promise of Matter.

Problems at the heart of the Matter

With Matter came the promise of compatibility with every ecosystem, from Apple Home and Amazon Alexa to Home Assistant and Google Home. The industry was watching Ikea’s rollout closely; it was the first time Matter devices had been tested at the scale the standard was designed for — inexpensive devices for lots of people that would just work.

Advertisement

“While Thread provides a robust and secure foundation at the network layer, optimizing the end-to-end experience requires ongoing collaboration across all these interconnected components.”

— Ann Olivo, Thread Group

But what has become clear since Matter’s enthusiastic launch is that Apple, Google, and Amazon are now fully focused on pursuing their own agendas. The cooperative spirit that defined the standard’s early development has stalled, and it’s every platform for itself in the race for users.

Matter is an interoperability standard, but interoperability with Matter devices is still largely elusive. Rather than being a plug-and-play solution for manufacturers — make a Matter device, and it will just work with any platform — there remains a huge onus on each manufacturer to ensure its devices work properly with each platform before release. Which is basically the same problem they had before Matter launched.

Only now manufacturers have a playbook to follow that supposedly makes their devices work with everyone — easy, right? Apparently not. My theory is that it’s how the platforms interact with the devices that is causing many of these problems — something manufacturers have no control over.

Basic Thread network topology and devices.

Basic Thread network topology and devices.
Image: Thread Group

Thread is a low-power, IP-based wireless protocol for smart home devices. It operates locally as a self-healing mesh network and promises low latency. It uses Thread Border Routers to connect to other networks and the internet.

Advertisement

Matter-over-Thread devices use Matter as the application layer, a shared language that enables compatibility across different smart home platforms.

This was implicitly confirmed by Thread Group, the organization that runs the Thread protocol, when I asked for comment on the issues users were seeing with Ikea’s Matter devices. “A seamless onboarding experience relies on orchestrating multiple components and layers within the smart home ecosystem, including the mobile app, application protocol, network protocol, platform software, and hardware design,” Ann Olivo, VP of marketing for Thread Group, told me via email. “While Thread provides a robust and secure foundation at the network layer, optimizing the end-to-end experience requires ongoing collaboration across all these interconnected components.”

That’s not to say Thread is blameless here. The protocol is frustratingly obtuse, and there are still too few troubleshooting solutions. Thread Border Routers remain a major pain point. Having too many, not enough, or the wrong ones can cause onboarding and connectivity issues. That last one is down to the problem of multiple TBRs from different companies still not working together. In practice, this means many homes now have several Thread Border Routers — Apple TVs, Eero routers, Echos, Google TV Streamers — that don’t always cooperate.

Additionally, Ikea may have shot itself in the foot by releasing its line of smart bulbs weeks after the remotes and sensors (they’re still not widely available). The latter are battery-powered, the former mains-powered. Thread is a low-power mesh network that relies on mains-powered repeaters to route signals. If you bought battery-powered buttons and sensors but have no mains-powered devices, that could be why you’ve seen devices drop off the network.

What is Ikea doing about it?

Advertisement
These screenshots show how to access the Thread troubleshooting tools in Ikea’s Home Smart app.

These screenshots show how to access the Thread troubleshooting tools in Ikea’s Home Smart app.
Image: Ikea

In 2024, the Connectivity Standards Alliance (the organization behind Matter) had to set up an interoperability lab to help manufacturers test their devices across all platforms. Whether Ikea took advantage of this or just took the promise of platform interoperability at face value isn’t clear. But either way, it now has a big mess to clean up.

The company is scrambling to improve reliability through software updates to its Dirigera hub, focused on improving Thread network performance and Matter onboarding stability. These include optimizing network communication and implementing “better cleanup of network settings after configuration changes, and fixes for connectivity disruptions that could cause device onboarding to fail,” according to David Granath, range manager at Ikea, who is leading the development of its smart home products. “In addition, we had an issue where outdated IPv6 network addresses could linger after configuration changes, such as turning IPv6 off on the WiFi router.”

You don’t need Ikea’s hub or app to onboard Matter devices — you should be able to just use your platform’s app. But the new Thread reset function in Ikea’s Home Smart app, which the company says “helps to rebuild the local Thread mesh if devices or border routers have fallen out of sync,” did help with some of my issues. Additionally, a Thread network check tool (iOS only) that shows your Thread network and which border routers are part of it is also useful. (There are a few other apps that offer this, too.)

Ikea’s stumble reveals a fundamental problem with Matter’s promise that you can build a device once and trust the platforms to handle the rest

Over the last week, I worked with Ikea and these new tools to troubleshoot my setup, and tried resetting and re-adding several devices, along with a new Bilresa button Ikea sent.

Advertisement

I got the new button connected to Apple Home on the first try, and yes — I cheered. I was also finally able to add the Timmerflotte temperature sensor to the Dirigera hub, and I had my first successful attempt at using Ikea devices with multi-admin (which lets you share devices across platforms), adding the Grillplats smart plug from Apple Home into Google Home.

However, an existing Kajplats lightbulb and Myggspray motion sensor still wouldn’t connect to Apple Home — giving me the now familiar “Unable to Add Accessory: Operation timed out” alert after about three minutes of trying to connect. But I was able to set up both of those in Google Home.

Ikea’s efforts may have improved things, but connecting devices still remains hit or miss. Even if it resolves the problems — and it looks like it’s moving in the right direction — Ikea’s stumble reveals a fundamental problem with Matter’s promise that you can build a device once and trust the platforms to handle the rest.

Until the major players prioritize interoperability, every manufacturer risks ending up where Ikea is now, scrambling for solutions in a sea of problems. Users who don’t turn to places like Reddit and YouTube for help will simply return their gadgets and move on. And the smart home will remain stuck in the early-adopter phase that Matter was supposed to leave behind.

While it’s clear there are ways to onboard these devices and keep them connected, the current experience is poor — not because any one company is failing, but because all of them are. And that’s not good news for Matter. Ultimately, what or who is at fault isn’t really the point; the point is that Matter promised it would just work, and it just doesn’t.

Advertisement
Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.

Continue Reading

Technology

Do you know the true cost of identity theft?

Published

on

Do you know the true cost of identity theft?

NEWYou can now listen to Fox News articles!

Identity theft tied to major data broker breaches has cost Americans more than $20 billion over the past decade, according to a 2026 report from the U.S. Senate Joint Economic Committee.

That figure comes from just four breaches: Equifax (2017), Exactis (2018), National Public Data (2023) and TransUnion (2025). The estimate applies federal identity-theft loss data, including a typical loss of about $200 per victim, across hundreds of millions of exposed records.

The result is a multibillion-dollar total. It’s also a narrow one. The calculation shows reported financial losses. It doesn’t account for damaged credit files, delayed loan approvals, higher borrowing costs or the hours consumers spend restoring their financial records after misuse.

So where does that leave you?

Advertisement

Sign up for my FREE CyberGuy Report
Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you’ll get instant access to my Ultimate Scam Survival Guide – free when you join my CYBERGUY.COM newsletter.

HOW DEBIT CARD FRAUD CAN HAPPEN WITHOUT USING THE CARD

Massive data breaches at Equifax, Exactis, National Public Data and TransUnion exposed personal information that criminals later used for identity theft and financial fraud. (Nastasic/Getty Images)

What this median leaves out

The $200 figure used in the federal estimate is a median. It marks the midpoint of reported identity theft losses collected by the FTC. Many cases fall above it. FTC Consumer Sentinel data shows that losses swing widely depending on how the fraud happens. When money is moved through bank transfers or payment apps, reported median losses are markedly higher than in cases involving unauthorized credit card charges.

Loan or lease fraud can leave you with balances that need formal disputes before lenders correct the record. Reversing a charge doesn’t automatically restore a credit file. Accounts opened in your name can generate hard inquiries.

Advertisement

Missed payments linked to fraudulent loans can appear before the account is identified as fraudulent. And lenders reviewing a mortgage or auto application evaluate the report as it exists at that time. A $200 median captures a reported dollar amount. It falls short of showing how identity misuse can stifle borrowing terms or access to credit later. 

The time cost of identity theft

After identity theft, the first step the FTC directs you to take is to file a report at IdentityTheft.gov. That generates a recovery plan and an identity theft report, which can be used to dispute fraudulent accounts. This is your starting point, and not anywhere close to a resolution.

Victims are instructed to contact each affected creditor directly, close or freeze compromised accounts and request written confirmation that the account was fraudulent. If a new line of credit was opened, that often requires submitting more documentation, completing affidavits and following up until the lender updates its reporting to the credit bureaus.

The FTC also advises placing a fraud alert with one of the three nationwide credit bureaus, which must notify the others. A credit freeze must be placed separately with each bureau. If you later apply for credit, they must temporarily lift the freeze before lenders can access your credit report. The Identity Theft Resource Center (ITRC) reports that victims frequently spend weeks resolving cases involving new account fraud. Complex cases can stretch even longer, especially when collection agencies become involved or when fraudulent tax returns trigger IRS identity verification.

1 BILLION IDENTITY RECORDS EXPOSED IN ID VERIFICATION DATA LEAK
 

Advertisement

An identity theft victim in Albany, New York, looks over documents he’s gathered. Victims of identity theft frequently spend weeks disputing fraudulent accounts, contacting lenders and restoring their credit reports after stolen data is misused. (John Carl D’Annibale/Albany Times Union via Getty Images)

During that period, you may be gathering records, mailing certified letters, waiting on hold with creditors or tracking dispute deadlines. The process moves at the pace of institutional review. All this time required to repair records is part of the cost of your stolen identity.

Earlier this year, a 57-year-old woman in Los Alamitos, California, discovered her identity had been stolen after receiving a voicemail from a Hertz rental location in Miami asking when she planned to return a Mercedes-Benz. She had never rented the vehicle, reported $78,500 in losses and spent nearly 10 days trying to recover from a single stolen ID.

Here’s where identity theft becomes more expensive

In its March 2025 Consumer Sentinel Network release, the FTC said consumers lost more than $12.5 billion to fraud in 2024, a 25% increase from 2023. Identity theft made up a large share of those reports. When misuse goes undetected, it spreads.

A stolen Social Security number can be used to open multiple accounts over time. Hard inquiries appear across different credit bureaus. New lenders and collection agencies show up, and each additional account adds another dispute you need to resolve. Identity theft often doesn’t stop after the first incident.

Advertisement

The ITRC says 31.5% of general consumer victims were targeted twice in a year, and 24.6% were hit three times last year. Even though fewer people reported a first-time identity theft, repeat targeting is becoming more common. Once your information is exposed, it can be used again. Losses can grow fast, too.

The same ITRC report found that more than 20% of victims reported losses exceeding $100,000. As the fraud spreads, so does the cleanup. What starts as a single unauthorized account can turn into disputes with lenders, credit bureaus and collection agencies. That buildup over time is where identity theft becomes more expensive.

How identity theft protection and credit monitoring can help

If you rely on occasional credit checks or alerts from a single bank, you’re only seeing activity tied to one account. If fraud appears elsewhere, it may not surface until a lender flags it.

Identity protection services can track activity across all three major credit bureaus and alert you to new inquiries or accounts as they appear. Some also scan breach datasets for exposed personal identifiers, including Social Security numbers and email addresses. Earlier alerts mean fewer fraudulent accounts can accumulate before you step in.

5 MYTHS ABOUT IDENTITY THEFT THAT PUT YOUR DATA AT RISK
 

Advertisement

Identity theft tied to major data broker breaches has cost Americans more than $20 billion over the past decade, according to a Senate report. (Sara Diggins/The Austin American-Statesman via Getty Images)

Many services provide three-bureau credit monitoring and real-time alerts when there are changes to your credit report. Some also scan known data breach records for exposed personal information and connect members with fraud resolution specialists who help with documentation and disputes. Certain plans include identity theft insurance that can help cover eligible recovery costs, subject to policy limits.

Monitoring does not prevent every identity theft attempt. It can reduce how far fraud spreads and how long it takes to contain it.

See my tips and best picks on Best Identity Theft Protection at Cyberguy.com.

Kurt’s key takeaways

The numbers tied to major data broker breaches show just how expensive stolen information can become. A single exposed record may seem harmless at first, but once that information spreads through the data broker ecosystem, it can resurface again and again. For many victims, the real damage is not just the money lost. It is the time spent disputing accounts, repairing credit files and trying to stop fraud from spreading further. Identity theft rarely happens in one clean event. It often unfolds slowly as criminals reuse the same stolen details across multiple lenders, services and databases. The good news is that you are not powerless. Monitoring your credit, limiting how widely your personal information appears online and responding quickly to alerts can reduce the damage if your information is misused. The earlier you catch suspicious activity, the easier it is to stop it before it spreads.

Advertisement

Have you ever checked your credit report or searched your name online and found information about yourself that surprised you? Let us know by writing to us at Cyberguy.com.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

Sign up for my FREE CyberGuy Report
Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox. Plus, you’ll get instant access to my Ultimate Scam Survival Guide – free when you join my CYBERGUY.COM newsletter.

Copyright 2026 CyberGuy.com. All rights reserved.

Advertisement
Continue Reading

Technology

The Live Nation trial restarts with a ‘velvet hammer’

Published

on

The Live Nation trial restarts with a ‘velvet hammer’

After a chaotic week following the Justice Department’s mid-trial settlement with Live Nation-Ticketmaster, the antitrust trial picked back up surprisingly smoothly on Monday — this time, with dozens of states leading the case.

This isn’t the outcome the states originally wanted. Out of concerns about being able to effectively take over the case and fear that the jury would be prejudiced by the shakeup, they requested a mistrial, which would have restarted the court battle at an unknown future date. But an irritated Judge Arun Subramanian seemed likely to deny the request, and once the states figured out how to retain the DOJ’s expert witness and were able to quickly hire up, they withdrew their mistrial motion. After the new faces were introduced, the trial restarted from roughly where it left off more than a week ago, with testimony that included how Live Nation deployed its “velvet hammer” against rivals.

Subramanian welcomed the jurors back from their “spring break” and asked if they had read or encountered any news about the case when they were out, which is forbidden by the jury instructions. They either shook their heads or remained silent. He reminded the jurors that the US had resolved its claims, as had a handful of states, but the rest were proceeding to trial. Jurors shouldn’t make any inferences from the fact those parties are no longer in the case, he said.

With the DOJ out of the picture, the lawyers who questioned early witnesses were gone, replaced by a new team co-led by Jonathan Hatch, an attorney from the New York AG’s office, and Jeffrey Kessler of Winston & Strawn, who represented college athletes in the landmark Supreme Court antitrust case against the NCAA over compensation.

The states’ attorneys picked up questioning of Jay Marciano, the COO of AEG, a competitor to Live Nation on multiple fronts. While Hatch refreshed jurors on parts of Marciano’s prior testimony, it was otherwise a fairly standard examination. Marciano testified about ticketing models he prefers in Europe, where multiple ticketing services often work at a venue, unlike the norm in the US where venues tend to accept exclusive ticketing contracts, often from Ticketmaster.

Advertisement

On cross examination, Marciano spoke to an incident the jury heard about early in the trial: a call between the Barclays Center’s then-CEO and Live Nation CEO Michael Rapino, who responded to an attempt to abandon Ticketmaster by saying it would be harder for the arena to get concerts with the new UBS Arena nearby. While Barclays interpreted this as a threat to protect Ticketmaster, Marciano affirmed that it’s common as a concert promoter to play venues against each other to get more favorable terms, and that the UBS Arena likely would attract artists away from Barclays as the new venue in town.

Live Nation’s president of US concerts, Robert Roux, addressed a separate allegation: that Live Nation uses its broad control over US amphitheaters to maintain its monopoly power, leaving no other real options for artists looking to play large outdoor venues. Through Live Nation’s own business presentations, plaintiff attorney Josh Hafenbrack demonstrated that the company made big strides to gain power over four of the top five amphitheaters in the US by ticket sales between 2016 and now. A 2018 presentation showed a largely highlighted list of the top 100 amps worldwide, with the green highlights representing the 62 Live Nation owned, operated, or exclusively booked venues at the time. Since then, Roux confirmed, the company has added several more on that list.

Live Nation denies it acted anticompetitively, and argues the states ignore other kinds of venues that compete for the same shows. But Roux wrote in a 2015 email that many non-superstar artists come in wanting to play amphitheaters — many of which, evidence shown in court has suggested, are controlled or exclusively booked by Live Nation. He also wrote that in those cases, there was “room for tighter negotiations and deals.”

“Either we are together or we are competitors”

Other emails described how Live Nation thinks about its competition when contemplating otherwise lucrative deals. In a 2018 email exchange, Rapino questioned why Live Nation should give shows to a promoter in the South it considered acquiring, Red Mountain Entertainment, before it actually owned it. Roux wrote at the time that the message to Red Mountain should be, “Either we are together or we are competitors.” He described the approach as a “velvet hammer.” On the witness stand, Roux said the message wasn’t meant to “antagonize” the promoter, but to be firm and send a clear message. In a separate exchange that mentioned Red Mountain, Roux wrote that Live Nation shouldn’t get “complacent” and “let small guys encroach from the edges.” Roux said the comment was a general one, and not specific to the promoter. Live Nation acquired Red Mountain in 2018.

Advertisement

In 2020, Rapino advised Roux against letting Radio Disney and concert promoter Superfly into a Live Nation venue, even after they offered a contract that would yield at least $400,000 in profit for Live Nation for renting out the amp. One executive had raised a concern about allowing a third-party promoter into the amp, even though the “money is great.”

Finally, Roux testified that Live Nation’s profits per fan have multiplied in recent years, with profitability in large amps, a key market in the case, growing more than other venue categories between 2019 and 2024. Before certain costs were factored in, the company made $386 million in profit from large amps in 2024, nearly triple the amount it made in that segment in 2019.

Besides the delay in the case while the states’ team sorted out its next moves absent the DOJ, there wasn’t a noticeable change in the flow of trial and how the new litigators operated, compared to the first week of trial. The case is still expected to run several more weeks, though both sides said they’ve worked to trim their witness lists to help make up for lost time. Toward the end of this week, one of the trial’s most high-profile witnesses is expected to take the stand: Live Nation’s CEO.

Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.

Continue Reading
Advertisement

Trending