We are still in the early stages of the NFT space and already so much money has been injected. unfortunately, there is high possibility of hackers attempt to steal users NFTs or scam them. So can NFTs be hacked?
Just like any digital file in the world, NFTs can get hacked. Always make sure to protect your NFTs from potential security gaps, including the network you are accessing from, device you use, your NFT wallet and the social interaction you do physically and digitally.
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Let us look at the bright side, the blockchain technology where NFTs reside are the safest virtual platform given its decentralisation.
Every NFT transaction is verified by multiple computers around the globe, which means that in order to a hacker to hack the network he has to hack multiple computer across the world at the same time which is extremely difficult.
To protect your NFTs there are different levels of ways you can secure your NFTs to make it harder for a hacker to get to your wallet.
Network Level
Use Private Networks
On a network level make sure that your computer is connected to a private WiFi.
And if you have to connect to a public WiFi (If you are hanging in a coffee shop maybe) then just make sure that you do not use your wallet and avoid using the browser that has your wallet extension on it.
Use a VPN for More Security
If you prefer to have an additional layer of security just use a virtual private network (VPN)
VPN make it difficult for a hacker to track your activity on the internet, which means they will not be able to view your historical activities and find gaps where they can attack and steal your data.
If you are interested in a VPN, I would highly recommend to check out NordVPN it is one of the softwares I use. It also benefited me for using streaming services like Netflix and Disney+ which allows me to view region blocked content.
Device Level
Protect your Device with Antivirus
Any activity you do on your computer and particularly on the internet could allow a possible malicious software (malware) attack. I recommend that you install an antivirus software to reduce the possibility of such thing.
If an unfortunate occasion took place and your computer alerted you that you have a virus, just make sure that you:
- Disconnect your computer from the internet
- Disconnect your wallet and restore on a safe computer
- Change your passwords
Once you are sure that the computer is safe again then you can add your wallet again otherwise you may have to end up with formatting your computer.
Don’t Save your Seed Phrase on any Device
Whatever you do, do you not save your seed phrase any device not even as a photo. It is better to write it down on a piece of paper and hide it somewhere. It is the best way to make sure that you make it difficult for the hacker to get this information through accessing your device.
Wallet Level
Use Official Link to Install your Wallet
When you initially make a wallet for your NFT, make sure that it is installed from the official website link.
I would highly recommend you check it letter by letter on the URL because there are some hackers who have bought a similar name domain just so that they can get you to add your wallet, deposit your tokens and then they will instantly steal them.
Use a Hardware Wallet
Also a better way to secure your NFTs is by having a hardware wallet which is also called a cold wallet.
The concept behind the cold wallet is to treat it as the extra wallet where you keep your NFTs in it without using it to interact with any website. With that hardware wallet, even if a hacker manages to access your computer he will not be able to do transactions unless he interacts with your hardware wallet and figure out the pin code (with limited attempts available).
The hardware wallet that I highly recommend using is Ledger Nano S, I have been using Ledger since I started my NFT journey and it has been very useful to use as my backup wallet and reduces my risk exposure to my tokens I have.
Social Level
Don’t Leave your Laptop Publicly Accessible
We sometimes forget that being hacked could also be through real life interaction so just as a reminder make sure that you do not leave your laptop open in a public place.
And if you have to move of your disk, just make sure that at least you lock your screen (for Windows click Windows+L, and for MAC click Command+Control+Q) and wallet (through the browser extension) before leaving your computer.
Do not Open Unfamiliar Links
Social Media:
Whether you are on discord or Twitter just make sure that you do not open unfamiliar links from senders you do not know. Some users impersonate well-known projects just to send you links to phish information from you and possibly hack if you signed your wallet on their fake website.
If you are an active discord user I am sure you know what I mean and have encountered them. This happens almost every day, it especially happen when you just joined a new server where they pretend to greet you and give you a link. Be careful and just use the links in the Discord itself its safer (unless the whole project is a scam).
Trading:
Because NFT trading is still new, it has become a way that scammers talk pleasantly and then ask you for a trade. Just be careful on how you trade with them. There are platforms that allows NFTs trading through an escrow system. I personally did not use one, here is a link of the most common one that popup and you can start researching from. (please do your own research)
Bonus: Case Study
A notable hack story to mention was when a guy lost 3 of his Bored Ape Yacht Club because of a scammer who pretended to help in troubleshooting an issue. The morale of this story, just be cautious in this space all the time.
Final Thoughts
Decentralisation helped in allowing users to keep their assets to themselves without any central authority to supervise them.
But with such a privilege, hackers can hack and users cannot return what they lost because there is no central authority to protect them.
Do not be discouraged with the negativity here, this post purpose was to make you aware of the risks. As long as you invest money you do not mind losing, enjoy the journey of NFTs!
Related Posts:
- Cryptocurrency for Dummies – Everything I learned About it
- Are NFTs a Pyramid Scheme? 4 Reasons Why it Feels Like it
- Are NFTs a Scam? 5 Reasons why not all NFTs are a Scam
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