Nonfungible Tokens (NFTs) draw more users, but scammers are also interested in them. Digital treasures have caught the attention of Web3’s bad actors, who have lost millions through frauds and other types of attacks.
However, experts in the Web3 industry claim that there are numerous strategies and resources available to help protect against falling victim to NFT theft. Users can also take a variety of options after experiencing hacks that result in the loss of their digital collectibles.
The co-founder and CEO of blockchain security company CertiK, Ronghui Gu, stated that conducting due diligence is always the first and most crucial stage. Avoid clicking on shady URLs, and exercise extreme caution while approving tokens. Other best practices that he discussed included separating NFTs into distinct wallets based on their intended use and routinely verifying and revoking unnecessary permissions.
When asked what can be done if the assets are lost, Gu replied that customers have “not a lot” of options and that it is terrible that this is the case. However, NFT markets have the ability to put NFTs on a blacklist and prevent trading with them. Although hard wallets might be a fantastic solution, there are still hazards, according to Michael Pierce, CEO of Web3 security company NotCommon.
He detailed this: To reduce the possibility that the wallet has been tampered with before the owner receives it, people should purchase the hardware straight from the manufacturer.
Pierce advised victims to report scams or attacks that had already taken place “to assist keep others safe and identify the culprit” to databases like NotCommon. The CEO advised victims to seek legal representation if they are able to do so if the potential losses are severe.
Alvin Kan, the head of growth operations for BNB Chain, also mentioned that users can use tools like revoke cash, which allows users to check their wallet status and revoke approvals, and browser add-ons that display danger warnings prior to contract signing. Kan stated that there are efforts being made by the community to create more NFT-specific security solutions within the BNB Chain ecosystem. The CEO discussed other chain-wide programs including DappBay’s Red Alarm and AvengerDAO, which Kan says assist consumers keep one step ahead of scammers, as well as an NFT tool called GoPlus that identifies NFT validity. He detailed this:
In order to prevent users from interacting with harmful DApps and contracts, these tools monitor project risk levels in real-time and inform users of potentially problematic DApps.
Kan stressed the value of contacting NFT marketplaces after falling victim to a breach or scam. The executive said that burning the token might be the last option if all else fails. The best course of action may be to contact the NFT project and request that they burn any damaged or stolen tokens.
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