The New York City Department of Financial Services (NYDFS) has released a comprehensive report analyzing the impact of the famous Twitter hack in July, 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 to a listed social media company with over 330 million active users each month. This conclusion has serious consequences in light of the platform’s ever-increasing influence on both the 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 and how these companies have responded to protect their customers from fraud. NYFDS scanned and gave recommendations to crypto companies on how to prevent the success of such a cyber attack in the future.
The agency notes that the attackers targeted the Twitter accounts of cryptocurrency companies in the third phase of the hacking, including organizations controlled by the NYDFS. They “reacted quickly to the blocking of the affected headlines, indicating the maturity of the New York cryptocurrency market in which they are eligible to participate. Their actions show that New York continues to set high standards and attract only the most responsible stakeholders. ”
Coinbase, Gemini and Square, which offer wallet services and their Twitter accounts were hacked, quickly blocked the bitcoin addresses the hackers posted on Twitter. According to a NYFDS survey, each company blocked associated addresses within 40 minutes after the accounts were compromised.
Fifteen crypto companies that were investigated totally banned address transfers, and seven did not. The report indicates that some companies have different business models and do not directly operate custody and transfer services, which explains why they do not move.
Among those who did, Coinbase blocked approximately 5,670 transfers, valued at $ 1,294,000; Block 358, worth about $ 51,000; Banning Gemini Two worth $ 18,000; And Bitstamp blocked one for $ 250.
Another topic for NYFDS research and report was an analysis of security measures taken by crypto companies to protect their social media accounts after a breach, and gather key recommendations to improve security in the future.
This included using strong unique passwords, monitoring social media accounts for unauthorized posts, using multi-factor authentication while preventing SMS-based MFAs due to their intrusion sensitivity, and restricting employees’ access to social media accounts.
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NYFDS put the hack in context, noting that in 2019, millions of people worldwide lost more than $ 4.3 billion due to cryptocurrency fraud, up from $ 650 million in 2018. By taking advantage of the pandemic, fraudsters have already stolen more than $ 380 for $ 1 million in the first half of 2020. One of the scam tactics that crosses Twitter hacking is Elon Musk’s “Twitter nominated,” which has already cost victims nearly $ 200,000 in bitcoin.