How to Safeguard Your Digital Assets

The promise of blockchain is that it will give you an immutable, secure and decentralized way to store your digital assets. But with so many potential issues on the horizon such as security breaches and market volatility, how can we best protect our crypto?

The “describe 2 ways to protect the cyber assets” is a great article that will help you safeguard your digital assets. The article includes 2 different methods of protecting your cyber assets.

The increasing usage of non-fungible tokens (NFTs) has posed a substantial threat to the security of many blockchain systems. The number of shady domain registrations, including the names of NFT merchants, increased by nearly 300 percent in March 2021.

You must have a working bitcoin wallet to participate in NFT markets. Because attackers may access your crypto wallet via your marketplace account, it exposes holders to additional NFT risks.

Malicious actors have joined NFT platforms and OpenSea’s Discord channel, impersonating support people in order to trick targets into submitting account information, as we shall see. 

To fool the NFT ecosystem into moving cash or supplying passwords, some use outmoded phishing tactics.

The Chief Executive Officer of Digital Asset Research, Doug Schwenk, asserts that NFTs are susceptible to various vulnerabilities and a security risk that may be unfamiliar to most businesses. “It necessitates a variety of new operating procedures, creates access to a new set of systems (public blockchains), & implies hazards with which many businesses are less accustomed.”

Growth and Safety of the NFT

In 2021, the non-fungible tokens market was estimated to be valued at least $40 billion. OpenSea, the world’s biggest NFT marketplace, sold 2.3 million NFTs in January 2022. In comparison to December 2020, there was a million-sale rise.

Sales by value also set records in January, with $4.7 billion sold on OpenSea alone. Token auctions are now held in traditional auction houses like Christie’s and Sotheby’s. With so much financial activity going on, it was only a matter of time until dangerous individuals took notice.

On Discord, there’s a lot of fake support for NFT.

Scam NFT projects

Consider the recent social engineering ruse on the OpenSea Discord channel. The attackers waited for someone to send a support request using the instant messaging service. The victim is then invited to a second phony support server.

After attracting the victim to their server, the attacker requests screen sharing to resolve the issue. The victim is then asked to “resynchronize” their MetaMask Chrome extension wallet with their MetaMask app. Next, the user is directed to execute the Configuration> Advanced> Sync with Mobile action chain, which generates private keys.

After that, attackers may take a snapshot of the QR code and use it to sync the wallet with their MetaMask software. The attackers are now free to take bitcoin from the victim’s wallet after synchronization.

Phishing and NFT Scams from the Past

NFT Wallets hacked

Fraudsters stole hundreds of NFTs from OpenSea users in February 2022, totaling 254 tokens. The heist was believed to be worth $1.7 million and lasted around three hours.

Victims are tricked into signing an online blank smart contract to transfer tokens, according to OpenSea CEO Devin Finzer. The offenders filled in the contract information without the victim’s awareness after getting the authorized signature.

It enabled the attackers to acquire access to digital assets by breaching cyber security. Phishing, a bogus email asking a smart contract signature, was the source of this assault.

Imposter NFT store websites use email & social media phishing efforts to entice targets into divulging their credentials.

The Three Most Serious NFT Security Threats

  1. Counterfeiting Trading Platform
  2. Technical Assistance That Isn’t
  3. Projects that are not real

Counterfeiting Trading Platform

To purchase and sell Non-Fungible Tokens, you must first figure out where to buy and sell them. Many bogus NFT trading websites may be found by doing an internet search.

Because many phony websites seem so similar to actual websites, it’s impossible to tell them apart.

Technical Assistance That Isn’t

One of the most common security problems is phony customer service or technical support.

Projects that are not real

Scammers may try to persuade you to invest in initiatives that use non-fungible tokens. They may provide you with links to phony NFT platforms.

Methods to Reduce NFT Security Risks

The strategies listed below may help to enhance NFT security:

Avoiding NFT scams

  • On all accounts, enable two-factor authentication.
  • Learn to recognize phishing scams and never click or download anything from unexpected or questionable emails.
  • Requests for fresh artwork should be avoided. Investigate the requester’s history and social media presence, and ask for references if feasible.
  • Use a hardware wallet instead of a software wallet.
  • Use the DMCA copyright infringement to protect your work.

The world of digital assets is still in its infancy, and both potential and danger are growing. Those who invest in the NFT space should keep an eye out for security issues.

Conclusion 

Because of the hype, it is vital to do extensive study before jumping deeply into anything. When it comes to non-fungible tokens, this is a good idea. 

To begin, you must first comprehend the related security concerns and harmful code. As a result, purchasing and selling non-traditional assets on the market will be considerably easier and risk-free for you.

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