The widespread use of inverted tokens (NFTs) has created significant risks for digital assets for the security of different blockchain systems. In March 2021, the number of questionable domain registrations, including the names of NFT retailers, increased by approx. 300%.
To participate in NFT marketplaces, you must have a cryptocurrency wallet in operation. It exposes the holder to new NFT vulnerabilities, as attackers can gain access to your wallet through your market account.
As we will see, malicious actors have joined NFT platforms and the OpenSea Discord server, mimicking support staff to deceive targets to provide billing information.
Some people use outdated phishing methods to trick the NFT ecosystem into transferring payments or providing credentials.
Digital Asset Research CEO Doug Schwenk claims that NFTs are vulnerable to a variety of vulnerabilities and security risks that could be foreign to most companies. “It requires a variety of new operating processes, creates access to new systems (public blockchains) and involves risks that many companies are less accustomed to.
NFT Growth and Security
The unchanged symbolic sector was worth at least $ 40 billion in 2021. In January 2022, OpenSea, the world’s largest NFT marketplace, sold 2.3 million NFT. That was a million sales increase compared to December 2020.
In January, sales by value also broke a record, with $ 4.7 billion sold on OpenSea alone. Even classic auction houses like Christie’s and Sotheby’s now host token auctions. With so much financial activity going on, it was inevitable that dangerous actors would notice.
Counterfeit NFT support on Discord
Contemplate the deception of social engineering that took place on the OpenSea Discord server. Attackers were waiting for someone to ask support questions about the chat program. They then offer the victim another forged support servant.
After attracting the victim to his server, the attacker asks for screen sharing to resolve the issue. The victim is then asked to “reset” their MetaMask Chrome extension wallet with their MetaMask app. Next, the user is instructed to perform settings> Advanced> Synchronization with a mobile action chain, which generates private keys.
Attackers can then take a screenshot of the QR code and use it to synchronize the wallet with their MetaMask application. After synchronization, attackers are free to steal cryptocurrency from the victim’s wallet.
Old-fashioned phishing and NFT scams
In February 2022, fraudsters stole hundreds of NFT from OpenSea users and stole 254 tokens. The estimated value of the theft was 1.7 million dollars and it took place for about three hours.
OpenSea CEO Devin Finzer said the victims of the album to sign a blank online smart contract to transfer tokens. After receiving the source’s signature, the perpetrators filled in the contract information without the victim’s knowledge.
It allowed attackers to break cyber security to gain ownership of digital assets. The attack was carried out by phishing, a fraudulent e-mail requesting a clever signing of an agreement.
Imposter NFT retail websites use e-mail and social media sites to entice targets to display their credentials.
3 Most important NFT security risks
- Beautiful trading platform
- Bogus technical support
- Fake projects
Beautiful trading platform
To invest in a Non-Fungible Token, you must first decide where you can buy and sell NFTs. When you search online, you can find many fraudulent NFT business sites.
These fraudulent websites resemble legitimate sites, so it will be difficult to distinguish between them.
Bogus technical support
Counterfeit customer service or technical support is one of the most common security issues.
Scammers might try to get you to invest in some unchangeable symbol projects. They could give you links to fake NFT platforms.
Ways to improve NFT security risk
The following methods can improve NFT security:
- Install dual authentication on all accounts.
- Learn how to detect phishing attacks and never click or download anything from unknown or suspicious emails.
- Be wary of requests for new artwork. If possible, check the applicant’s background and social media presence and get referrals.
- Use a hardware wallet instead of a software wallet.
- Protect your work by using DMCA copyright infringement
The digital asset universe is still in its infancy and both opportunities and risks are expanding. It is useful for those who invest in the NFT space to be alert to security threats.
It is necessary to carry out exhaustive research before diving into the head for something due to the noise. It is advisable when it comes to unchangeable symbols.
First, you must understand all related security issues and malicious code. This will make it much easier and risk-free for you to buy and sell non-traditional securities on the market.
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