May 16, 2022
By Murtuza Merchant
While some NFTs are worth a few dollars, others can cost as much as a house or several houses. But regardless of how much an individual pays for their NFT, it’s crucial to keep it safe.
In this guide, we explain the basics of NFT securities and vulnerabilities you should be aware of:
Where Are NFTs Stored?
Since an NFT is an encrypted token, it can be stored on a digital blockchain, just like cryptocurrency transactions. Blockchains are, by nature, secure, as they use unchangeable distributed ledgers (or distributed ledger technology) that anyone within the network can view. This makes blockchains very difficult to tamper with.
Vulnerabilities Within the NFT Industry
What’s important to remember is that the NFT industry hasn’t been around long but is now mammoth in size and value. This is why many cybercriminals have chosen to target this market to exploit unsuspecting victims and their precious NFTs.
There are two critical pieces of information that a cybercriminal will try to access in order to steal your NFTs: your private key and seed phrase. Your NFT cannot be moved anywhere without using a private key, as this allows you to verify that it is you making the transaction. On top of this, a seed phrase can give access to your NFT wallet. A scammer can get their hands on your NFTs in minutes with this information.
Keeping Your NFTs Safe
There are several things you can do to decrease the chances of NFT theft, the first being using two-factor authentication for your accounts. For example, if you have an OpenSea account, make sure you use two-factor authentication so that a hacker cannot directly access your account without verification from another source, such as email or text.
Additionally, you should ensure that if you do want to click on any kind of link in this scenario, you use a link-checking website first, which will let you know if a site is legitimate or not. Most phishing scams occur via phony links, so using a link checker can mean the difference between avoiding a phishing scam and falling for one.
You should also check any account that messages you with an NFT airdrop or giveaway. If the account holder is claiming to be a big NFT artist but only has a handful of followers, chances are, they’re not who they claim to be. You can also report these phony accounts to Twitter and get them removed from the platform.
Lastly, ensure that you always store your private keys and seed phrases super securely, as they provide a gateway to your NFTs. You can use digital wallets to store your NFTs, but many of them are connected to the internet, making it easier for a hack to take place.
About the author
Murtuza Merchant is a senior journalist and an avid follower of blockchain and cryptocurrencies.