As NFTs are attracted by more users, they are also focused on the eyes of scammers. Web3’s bad actors have set their sights on digital collectibles so that millions are lost by scams and various attacks.
As per the concepts of professional workers in the Web3 space, there are multiple tools and ways available to prevent NFT theft. The users can also take various actions after hacks of losing their digital collectibles.
Experts Ideas
As per the idea of Ronghui Gu, “Due diligence is the most important step, and avoid clicking on such suspicious links and be very careful in signing token approvals”. In addition, the executive shared other best practices like regular checking and revoking unwanted permissions and dividing NFTs into various wallets for their purpose.
According to Gu, “Long-term holding wallets always feature minimal interaction with applications. Wallets in hardware technology have a relatively steep learning curve, but it is well worth the effort.”
Gu also told when asked about the assets that got lost it’s unfortunate, but there’s “not a lot” that users can do for recovering the assets. Gu says, “The main ongoing effort is by increasing awareness about common hacks. The first step is to educate users about transacting in the safest way and also the procedures to minimize their risk”.
- Avoid clicking on such suspicious links and be careful in signing token approvals.
- To educate users about transacting in the safest.
- Storyline will protect the NFT holder’s investment.
- revoke.cash is used as a way to check wallet status.
The CEO of Web3 security firm NotCommon, Michael Pierce, said hardware wallets offer a great solution, but also come with risks. To his explanation:” A wallet should be bought directly from the manufacturer to reduce the chances it has been compromised before the recipient receives it.” As a precaution, Pierce recommended victims report a scam to databases like NotCommon. He told that “It helps others, who are suffering from hacks and helps to identify and protect from the hacks,”.
Mohamed Issa, a senior strategist at data firm Chainalysis said, one of the fastest-growing areas in crypto is NFTs, so it’s becoming a “go-to target for hackers.” He also says, “Nowadays, the challenges for cryptocurrency investigations are created by the transactions in NFT, and also decentralized protocols are more complex and are also very difficult for tracing when compared to that of traditional centralized services.”
Reporting scams and hacks to law enforcement is very important and also he believes that the tools like Storyline, which is an analysis software created by their firm, will protect the NFT holder’s investment. After getting hacked that tool can assist investigators and helps to enable users to concentrate on the transactions and funds that matter most, Issa also believes.
According to BNB Chain growth operations director, Alvin Kan, users can use tools like revoke.cash which is used as a way to check wallet status and revoke approvals and is also used for browser extensions that provide risk warnings before signing contracts.
Some NFT tools are GoPlus which detects NFT authenticity, DappBay’s Red Alarm, which is the other chain-wide initiative, and AvengerDAO, which Kan believes helps users stay one step ahead of scammers.
Alvin told that “These tools are by the contribution of the ecosystem projects, for assessing real-time project risk levels and alerting users from potentially risky DApps so that users can not interact with any other malicious DApps and contracts.”
It is necessary to reach out to NFT marketplaces, after becoming a victim of a hack or scam, Kan points up. In case all else fails, the executive said that burning the token is the last resort. Approaching the NFT project and say them to burn the stolen token is the final solution.
