Fear That Your NFT Will Be Stolen? These Are A Number Of Ways To Overcome It

Blockchain security firm, KertiK, reveals the dangers of NFT fraud. (photo: Twitter @certik)

JAKARTA When nonfungible tokens (NFTs) attract more users, NFTs have also attracted the attention of fraudsters. Bad actors on Web3 have set their sights on digital collectible goods, with the ownership of NFT millions of people missing through scams and multiple attacks.

However, according to professionals who work in Web3 rooms, there are many ways and tools to prevent becoming victims of NFT theft. In addition, users can also take various actions after losing their digital collection because they were hacked.

Ronghui Gu, co-founder and CEO of blockchain security firm KertiK, told Cointelegraph that the first and most important step is always the due diligence. Avoid clicking on suspicious links and be careful when signing token approvals," Gu said.

Going further, executives share other best practices such as checking and revoking unnecessed permits regularly and separating NFTs into different wallets according to their goals.

Long-term detention must be stored in a minimal interacting safe wallet, if any, with the app. The hardware wallet has a rather steep learning curve, but the investment time is worth it," Gu said.

When asked about what it could do after the asset was lost, Gu shared that it was unfortunate, but "not much" that users could do to recover assets. However, the NFT market can blacklist NFT so it can't be traded anymore.

Increasing awareness of general fraud is a sustainable effort. Educate users about the safest way to transact and how they can minimize the risk is the first step," he added.

While the hardware wallet may be a great solution, Michael divider, CEO of security firm Web3 NotCommon, said there were still risks involved.

"People have to buy hardware directly from the manufacturer to minimize the possibility of the wallet being damaged before the person accepts it," Michael divides.

Meanwhile, if a scam or attack has occurred,virto recommends that victims report it to databases such as NotCommon to help maintain the safety of others and identify scammers. If the potential loss is significant, the executive urges victims to take legal action if possible.

Mohamed Issa, a senior strategist at data firm Chainalysis, also shared some insights into the topic. According to Issa, as NFT is one of the fastest growing areas on crypto, it's a "target entry for hackers."

NFT transactions create new challenges for cryptocurrency investigations because decentralized protocols are more complex and very difficult to track than traditional centralized services, said Issa.

Issa also informed Cointelegraph of the importance of being proactive when becoming a victim of theft. While it is very important to report fraud and hacking to law enforcement, she believes NFT holders can protect their investment with tools such as Storyline, analysis software created by their company.

Issa believes that the tool can allow users to assist investigators once hacked and help them concentrate on transactions and the most important funds.

BNB Chain growth operations director Alvin Kan also shared that users can use tools such as revoke.cash a way to check wallet status and revoke approvals and browser extensions that provide risk warnings before signing a contract.

In the BNB Chain ecosystem, Kan told Cointelegraph that there is an effort from the community to provide more NFT-specific security tools. The executive talks about an NFT tool that detects the authenticity of NFT called GoPlus and other chain initiatives such as Red Alarm and AggerDAO DappBay, which Kan says helps users stay one step ahead of fraudsters. He explained that:

These tools, with ecosystem project contributions, assess the level of project risk in real time and notify users of DApps that are potentially risky so that users do not interact with DApps and dangerous contracts, he said.

After becoming victims of hacking or fraud, Kan highlighted the importance of reaching the NFT market. When all failed, the executive said that burning tokens might be the last resort. Outreaching the NFT project and asking them to burn tokens affected or stolen may be the last solution.