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A Web 3.0 newsletter covering the latest news that matters.

What’s in today’s crime cooler:

• Summary of What Happened

• What is the Impact on Users, Businesses, and Funds

• How to be More Secure in the Future

• Final Thoughts

Joseph O’Conner known by his Twitter handle PlugWalkJoe, was part of a group

Joseph O’Conner, known by his Twitter handle PlugWalkJoe, was part of a group that hacked over 100 high-profile Twitter accounts in July 2020. The group included Nima Fazeli, Mason John Sheppard, and Graham Clark.

They used these accounts to solicit Bitcoin from followers by falsely promising to send back Bitcoin in return. The accounts targeted included those of CoinDesk, Coinbase, Binance, Elon Musk, Warren Buffet, Joe Biden, Barrack Obama, and Kim Kardashian, as well as companies like Apple, Uber, and CashApp. The group managed to net $103,960 from the scheme before Twitter took down the scam posts.

O’Conner also pled guilty to a separate SIM-swapping scheme, which netted him $784,000 worth of digital assets. He was sentenced to five years in prison, with Judge Jed Rakoff granting him 28-months credit for time already served, leaving less than 3 years to his sentence. The US also asked for forfeiture/restitution of $2 million.

An earlier article when the attack happened labeled the hackers as “Low IQ” since they only managed to steal $103,960.

Despite being criticized for their low intelligence, the hackers behind the Twitter attack may have had more serious implications than mere financial gain. Some members of the crypto community ridiculed the hackers for not leveraging their hack for more significant financial gain. For example, they could have shorted an altcoin and then tweeted that the altcoin is delisted from Coinbase, Binance, etc.

However, others suggested that the attack wasn't just about money. Cameron Winklevoss, co-founder of US-based crypto exchange Gemini, said that “it appears the attacker has made off with only a paltry sum thus far,” while adding: “Very little to show for, given the options and what was at stake. Maybe this wasn't about the money...” The hack raised questions about Twitter's ability to combat disinformation and concerns about potential US presidential election interference. It also sparked discussions about the need for decentralized social networks based on blockchain technology.

Users:

• The hack targeted high-profile Twitter accounts, including those of Elon Musk, Joe Biden, and Barack Obama, and used them to solicit Bitcoin from followers. This led to a significant breach of trust for Twitter users, as they were deceived into sending Bitcoin with the false promise of getting more in return.

• The hack also raised concerns about the security of personal information on Twitter, as the hackers were able to gain control of high-profile accounts. This could potentially lead to a decrease in user trust and engagement on the platform.

Businesses:

• The hack impacted businesses in several ways. Firstly, the accounts of several businesses, including CoinDesk, Coinbase, Binance, Apple, Uber, and CashApp, were compromised. This could have led to reputational damage and loss of trust among their customers.

• Secondly, the hack raised serious questions about Twitter's ability to protect its users and combat disinformation, leading to a drop in Twitter's stock by as much as 4% in after-hours trading. This could have long-term implications for Twitter's business and its ability to attract advertisers.

Funds:

• The hackers managed to net $103,960 from the Twitter scam. However, one of the hackers, Joseph O’Conner, also pled guilty to a separate SIM-swapping scheme, which netted him $784,000 worth of digital assets. This represents a significant financial loss for the victims of these scams.

• The US also asked for forfeiture/restitution of $2 million from O’Conner, indicating the severity of the financial impact of his crimes.

• The hack could also have indirect financial implications, such as potential lawsuits against Twitter for failing to protect user accounts, and the costs associated with improving security measures to prevent similar incidents in the future.

For Users:

• Strong Passwords: Use complex and unique passwords for each account. Consider using a password manager to keep track of them.

• Two-Factor Authentication (2FA): Enable 2FA for all accounts when available. This adds an extra layer of security by requiring a second form of identification beyond just a password.

• Be Wary of Phishing Attempts: Be cautious of unsolicited communications asking for personal information or login details. Always verify the source before providing any information.

• Regularly Update and Monitor Accounts: Regularly check your accounts for any suspicious activity and update your security settings as new features become available.

For Businesses:

• Employee Training: Regularly train employees on cybersecurity best practices and how to identify and respond to potential threats.

• Access Management: Limit the number of employees who have access to sensitive information or systems. Use strong access controls and monitor activity.

• Regular Audits and Updates: Regularly audit security protocols and update them as necessary. This includes updating and patching software to protect against known vulnerabilities.

• Incident Response Plan: Have a plan in place for responding to security incidents. This can help minimize damage when an incident occurs.

For Twitter:

• Enhanced Security Measures: Implement robust security measures, including advanced threat detection algorithms and stronger access controls.

• Regular Security Audits: Conduct regular security audits to identify and address potential vulnerabilities.

• User Education: Educate users about security best practices and encourage them to use features like 2FA.

• Swift Response to Incidents: Have a swift and effective response plan for when security incidents occur. This includes transparent communication with users about what happened and what steps are being taken to resolve the issue.

• Consider Decentralized Systems: As suggested by some in the wake of the Twitter hack, decentralized systems based on blockchain technology could potentially offer enhanced security by eliminating single points of failure.

Our Finals Thoughts on this hack, it seems like it was most of a Twitter hack than a full crypto hack. Of course crypto was the main component that the hackers lead and decided to post, but if they wanted to make the most money why did they go after accounts like Joe Biden and Kim Kardashian that have almost zero correlation with mass crypto markets.

As they were able to attack tons of Twitter accounts off the rip they didn’t take that much money. Once again, do not strictly follow anyones advice on social media, always do you own research and due diligence before you make any financial decisions.

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Disclaimer: The information shared in this newsletter is for informational purposes only and should not be considered financial advice. It is crucial to conduct independent research and consult with a financial advisor before making any investment decisions.