The New York City Department of Financial Services (NYDFS) has released an extensive report that analyzes the impact of Julia’s Twitter hack, which resulted in the theft of more than $ 118,000 in Bitcoin (BTC).

In addition to the immediate physical impact, NYDFS says the incident exposed deep cybersecurity vulnerabilities in a $ 37 billion social media company with more than 330 million monthly active users. This discovery has dire consequences in light of the platform’s growing influence on both financial markets and the political arena.

The two main sections of the NYFDS report, released on October 14, examine the impact of the Twitter hack on cryptocurrency licensees in the department and how these companies have responded to protecting their clients from fraud. NYFDS has reviewed and compiled recommendations from crypto companies on how to prevent the success of such a cyber attack in the future.

The agency notes that in the third stage of the hack, attackers targeted the Twitter accounts of crypto companies, including devices controlled by the NYDFS. They “reacted quickly to the blocking of the affected headlines, which indicates the maturity of the New York cryptocurrency market in which they are eligible to participate. Their actions demonstrate that New York continues to set high standards and attract only the most responsible players. ”

Coinbase, Gemini, and Square, which provide wallet services whose Twitter accounts have been hacked, are quickly blocking Bitcoin addresses posted by hackers on Twitter. According to an NYFDS survey, each company blocked linked addresses within 40 minutes of the accounts being hacked.

Fifteen of the surveyed crypto companies generally banned transfers to addresses, and seven did not. The report indicates that some companies have different business models and are not directly related to custody and transfer services, which explains their negative nature.

Among those who did this, Coinbase blocked about 5,670 transfers, amounting to about $ 1,294,000; Block 358, worth approximately $ 51,000; The twins banned two people, which cost about $ 18,000; And Bitstamp blocked one for $ 250.

The second goal of the NYFDS survey and report was to analyze the security measures crypto companies are taking to protect their social media accounts after a breach, and to compile important recommendations for improving security in the future.

This included using strong unique passwords, monitoring social media accounts for unauthorized posts, and using multi-factor authentication, but avoiding SMS-based MFAs due to their vulnerability to hacking and restricting employee access to social media accounts.

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Putting the hack in context, NYFDS notes that in 2019, millions of people lost more than $ 4.3 billion to cryptocurrency fraud – up from $ 650 million in 2018. Scammers have already stolen more than $ 380 million in half. The first in 2020. A scam tactic that goes beyond the Twitter hack, “posing as Elon Musk on Twitter,” has already cost victims nearly $ 200,000 in Bitcoin.

Source: CoinTelegraph