Hackers first broke into the 24-year-old's Twitter account and began sending out tweets to her 51.4 million followers, reports The Verve, urging fans to follow the profile @lizzard, who claims to be the leader of the hacker group "Lizard Squad."
The profile, which has since been suspended, was the source of Tuesday's most sinister message.
The handle's owner claimed to posses stolen nude images of Swift, which they would release in exchange for a small amount of Bitcoin.
The offending tweets were quickly deleted and Swift regained control of her Twitter account, brushing off the threat with a series of tweets.- On mobile? Read Swift's tweet here
"Have fun photoshopping," Swift said, egging on the perpetrators, "cause you got NOTHING."
Swift is the owner of Twitter's fourth most-popular account with more than 51 million followers, making Tuesday's breach one of the biggest in the micro-blogging site's history.
Celebrity security breaches
A separate group of hackers made good on their threat to release intimate images of dozens of celebrities last summer when they posted a cache of photos online, including Hunger Games star Jennifer Lawrence.
Hackers said they'd stolen data belonging to 100 actors and singers in an iCloud security breach.
The hack was seen as a blow to Apple, and sparked a wider discussion about the nature of privacy, security and celebrity in the digital age.
Celebrities affected by the leak threatened Google with $100-million lawsuit in October over its alleged failure to remove the images from its search results.