Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Twitter shares stumble after high-profile, unprecedented hack

Published 07/16/2020, 08:13 AM
Updated 07/16/2020, 08:20 AM
© Reuters. The Twitter App loads on an iPhone in this illustration photograph

(Reuters) - Shares of Twitter Inc (NYSE:TWTR) dropped more than 4% in pre-market trading on Thursday, a day after hackers gained access to the social media company's internal systems to hijack accounts of several politicians, billionaires, celebrities and companies.

Hackers infiltrated the twitter handles of U.S. presidential candidate Joe Biden, reality TV star Kim Kardashian, former U.S. President Barack Obama and billionaire Elon Musk to solicit digital currency - raising major concerns about security on the widely-used platform.

The hack "certainly doesn't help," Joe Wittine, Edgewater Research analyst, told Reuters in an email. It will pose more of a "reputational risk", versus "material near-term risk to advertising revenues."

Twitter said hackers targeted employees with access to its internal systems and "used this access to take control of many highly-visible (including verified) accounts and Tweet on their behalf."

In an extraordinary step, Twitter temporarily prevented many verified accounts from publishing messages as it investigated the breach.

Twitter Chief Executive Officer Jack Dorsey said in a tweet on Wednesday that it was a "tough day" for everyone at Twitter and pledged to share "everything we can when we have a more complete understanding of exactly what happened."

Other high profile accounts that were hacked included rapper Kanye West, Amazon (NASDAQ:AMZN) founder Jeff Bezos, investor Warren Buffett, Microsoft Corp (NASDAQ:MSFT) co-founder Bill Gates, and the corporate accounts for Uber (NYSE:UBER) and Apple Inc (NASDAQ:AAPL). Several accounts of cryptocurrency-focused organizations were also hijacked.

© Reuters. The Twitter App loads on an iPhone in this illustration photograph

Publicly available blockchain records show that the apparent scammers received more than $100,000 worth of cryptocurrency.

Latest comments

Surprise!Twitter lack of security. Im Tired of companies dont give a # to secure customer data. They should be fined huge if they neglect to secure customers info. Until then this will happen again n again.
The hacker(s) proved that Jack Dorsey lied to Congress. Maybe he can do a year prison sentence.
Why he ran to Africa? He’s scared
that's what happens when your password is "joespassword".
@therealsleepyjoe is blaming cyber criminals for his campaign.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.