If you are concerned about the security of your NFT, there are several precautions you should take. These precautions include keeping yourself alert and reading up on any suspicious emails that you receive. They also include keeping yourself safe online by logging in to an official NFT marketplace instead of an unofficial one.
Viruses
Table of Content
The first step towards preventing NFT theft is to avoid using dubious websites. Such sites can be malicious and can reveal your password or account details. Additionally, using a hardware wallet can protect your data by keeping it offline, away from the reach of hackers. Moreover, you should always rotate your password, as repeated use of the same password may make it easy for hackers to get access to your account.
One method used by thieves to steal NFTs is to trick people into giving up their NFTs. One such example is where hackers pose as interested buyers on Discord channels. They pretend to help Becerra with a problem with his cryptocurrency wallet. Once the thief has obtained the NFTs, he can then “sell” them to others.
Another way that NFTs can be stolen is through user error. This happens when you click on a fake link, expose a secret phrase, or make a poor decision. It may seem like it is impossible to steal an NFT, but it can happen to anyone, even if you’re using a trusted site. A hacker will also need access to your wallet to steal your NFTs.
Another method is to hack into social media accounts. The most common way for an artist to be hacked is via their social media accounts. The Bored Ape Yacht Club was hacked and lost millions of dollars, which is why it’s important for artists to secure their social media accounts.
While imposing IP rights against a buyer is a complicated process, it’s possible to prevent NFTs from being sold online. A powerful takedown notice is an essential tool for this process. These notices are legal and can stop the sale of stolen NFTs. This method can only be used if a buyer does not know they are buying stolen assets.
Hackers are targeting users of NFT marketplaces because they store their assets on the marketplace’s hot wallets. As a result, a significant percentage of NFT investors fail to activate the standard security measures, such as two-factor authentication (2FA). Hackers use brute-force or scraped login credentials to break into an investor’s NFT account.
Phishing
If you’ve ever heard of phishing, you know that it can be a serious problem for cryptocurrency users. The scams typically involve phony pop-ups, emails, or advertisements requesting you to enter your private wallet keys. The goal is to deplete your wallet. There are a few ways to avoid getting scammed.
The first method involves scamming the victim into clicking on a link that doesn’t actually exist. This scam is a form of phishing, and has been known to steal NFT. One example is a recent phishing attack on the official Instagram page of Bored Ape Yacht Club. Hackers compromised the page and shared fake airdrop links with the project’s followers. Many of those crypto enthusiasts connected to the scam website, and their funds were siphoned out of their crypto wallets. This attack was carefully planned and coincided with the one-year anniversary of the project’s collection. Many cryptocurrency enthusiasts were targeted, and some estimates have indicated that up to $40 million worth of assets were stolen.
Among the most popular methods of NFT theft, phishing scams use social media accounts to trick users into giving up their private information. These scammers impersonate prominent figures in order to get personal details. You should never open phishing scams by clicking on untrusted links and never share your private keys with anyone.
Another way to get your NFT is through an investor scam. In this case, the scammer has used a fake NFT creator to steal 798 Ether (ETH) worth over $2.7 million. It is best to research a company before investing any money. Phishing scams can also involve scammers impersonating customers at NFT marketplaces. These scammers will send a fake link asking for your private wallet key.
Another way that phishing scammers can steal NFT is by posing as a legitimate NFT marketplace or trading platform. They will then send you an email containing a fake link that prompts you to enter your NFT and private wallet key. Once you do so, the scammers can record this information using spyware or keylogging.
User error
Theft of NFTs happens for several reasons. First, it can be stolen through a user error. A person might click on a malicious link or accidentally expose their secret phrase. This means that a hacker could get hold of the NFTs and use them to steal other people’s money. Secondly, a person could accidentally make a mistake in sending the NFT to the hacker.
In addition to user error, a non-fungible token ecosystem can be fraudulent. For example, a user who buys a stolen NFT will be penalized. The company will also take legal action against the user who unknowingly purchased a stolen NFT.
Another form of NFT theft involves phishing. On March 22, 2022, a user named Arthur Cheong fell victim to a phishing attack, in which he lost over $1.7 million worth of NFT. The attackers used a spear-phishing email disguised as a company in DeFiance’s portfolio. The stolen assets included two Tsubasa, two Hedgies, and 33 Second Self NFTs. To avoid this kind of scam, it’s essential to never click on an unfamiliar link or click on an unsolicited link in an email from an unknown source.
Another way to store NFTs is to use software wallets. These wallets store access information online, so the information is easier to find than cold storage devices. If your wallet is compromised, move your digital assets out of it right away. However, if you cannot delete it, some platforms have policies on recovering lost funds and compromised accounts. Contact their customer service if you need further help. To protect your digital assets, remember to protect your private key and passphrase.
Scams
It’s possible for your NFT to be stolen in two ways: through an email notification or by an intruder posing as a legitimate service. Either way, it’s important to know how to keep your NFT safe. The best way to keep your NFT secure is to log in only through the official marketplace’s website. You can also stay safe by joining communities like Discord for cryptocurrency and NFT enthusiasts.
NFTs can be very lucrative, especially if you sell popular art pieces. It is easy to advertise your NFT to a huge audience, but your buyers don’t always know about the service. The thief can then “steal” the NFT that links to the advertised assets from unsuspecting buyers.
Another way for your NFT to be stolen is by a computer virus. A virus is a dangerous program that will steal sensitive information. It’s vital to protect your computer against viruses. And don’t let a hacker get access to your wallet. You should also check for malicious websites before downloading any software from them.
Even though NFTs are a great way to make money, they can be vulnerable to theft. If you use a reputable exchange, you won’t be a victim. However, keep in mind that if your NFT is on a public computer, it’s easy for someone to copy it. So always keep your NFTs on your computer as safe as possible.
Another way NFTs can be stolen is via an “indirect” swap out. In this case, the seller sells the buyer an NFT linked to the artwork, but swaps it out mid-sale. The thief then steals the original NFT from the buyer, and is able to “sell” it to someone else.
A new report released by Elliptic outlines some of the risks posed by the popularity of NFTs. According to the report, there were over $100 million worth of NFTs stolen by scammers between July 2021 and July 2022. On average, the scammers gained $300,000. It is also estimated that NFTs were used to launder $8 million in illicit funds between 2017 and 2022.