The New York State Department of Financial Services (NYDFS) analyzed the July Twitter hack and the reaction of cryptocurrency companies. Based on the information gathered, experts prepared recommendations to prevent similar attacks in the future.
#NEWS: #NYDFS calls for regulation of #SocialMedia giants after @Twitter hack investigation.
Read #Press Release here: https://t.co/J4stBWDaP6.
A copy of the report can be found on the #NYDFS website: https://t.co/6lO11KYIqA pic.twitter.com/T2e3gtsJHZ
— NYDFS (@NYDFS) October 14, 2020
According to NYDFS, the incident exposed serious deficiencies in the social network’s cybersecurity. Researchers pointed out that hackers easily penetrated the network without using complex, high-tech methods.
“This underscores the vulnerability of Twitter’s cybersecurity and the scale of the potential destructive consequences,” the authors noted.
One of the main sections of the document concerns NYDFS-licensed cryptocurrency companies. The rapid response to the account hacks on their part indicates the maturity of New York’s digital assets sector, the researchers say.
“Their actions show that New York continues to set high standards and attract only the most responsible players,” NYDFS said.
According to the department, transfers to fraudulent addresses were blocked by 15 companies. Payments firm Square, as well as cryptocurrency exchanges Coinbase and Gemini, did this within 40 minutes. Seven organizations that do not engage in custody or transfers of funds were inactive.
The report states that Coinbase blocked about 5,670 transfers totaling around $1.3 million, Square — 358 transfers worth $51,000, Gemini — two transfers of $18,000. The trading platform Bitstamp did not approve one transfer of $250.
“Despite all efforts, Gemini, Square and Coinbase reported that just minutes before the block, several clients had transferred to the hackers’ accounts a total of about $22,000,” the report said.
Based on the reaction of cryptocurrency companies, researchers prepared recommendations to strengthen social media account security. They include using unique passwords and multi-factor authentication, monitoring messages, and restricting employees’ access to accounts.
In the night of July 16, 2020, a hacker hacked the Twitter accounts of Elon Musk, Bill Gates, Jeff Bezos and other celebrities. Posing as them, the attacker carried out a fake cryptocurrency giveaway, earning about $120,000 in BTC.
Earlier, blamed 17-year-old Graham Clarke for organizing the attack. He faces up to 200 years in prison. The teenager has not admitted guilt.
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