Professionals in the Web3 space discussed about different tools and best practices to keep hackers and scammers away from NFTs.
As nonfungible tokens (NFTs) attract a growing number of users, they also attract the attention of scammers. Bad actors on Web3 have focused their sights on digital collectibles, leading to the loss of millions of dollars through various schemes and attacks.
Avoid becoming an NFT theft victim
According to Web3 professionals, there are a variety of methods and instruments available to avoid being a victim of NFT theft. In addition, customers who have lost their digital valuables due to hacking can take a variety of steps.
Ronghui Gu, the co-founder and CEO of blockchain security firm CertiK said that: “Avoid clicking on suspicious links and be very careful when signing token approvals.”
The executive went a step further and talked about other best practices, such as checking permissions regularly and removing those that aren’t needed and putting NFTs in different wallets based on what they are used for. He also said the following:
“Long-term holds should be kept in a secure wallet that interacts minimally, if at all, with applications. Hardware wallets have a somewhat steep learning curve, but the time investment is worth it.”
When asked what could be done if users lost their assets, Gu said that it was unfortunate, but there wasn’t much they could do to get them back. But NFT marketplaces can put the NFTs on a blacklist so they can no longer be traded.
“Raising awareness of common scams is an ongoing effort. Educating users about the safest ways to transact and how they can minimize their risk is the first step,” he added.
Even though hardware wallets might be a good solution, the CEO of a Web3 security company called NotCommon, Michael Pierce, said there are still risks.
He explained that:
“People should buy the hardware directly from the manufacturer to minimize any chance the wallet has been tampered with before the person receives it.”
Pierce also suggested that if the scam or attack had already happened, victims should report it to databases like NotCommon “to help keep others safe and identify the scammer.” If the possible losses are big, the executive told the victims to go to court if they could.
Mohamed Issa, a senior strategist at the analytics company Chainalysis, provided additional perspective on the subject. According to Issa, as NFTs become one of the fastest-growing crypto domains, hackers are increasingly targeting them.
“NFT transactions are creating a new challenge for cryptocurrency investigation as decentralized protocols are more complex and very difficult to trace compared to traditional centralized services.”