Are NFTs safe? 3 things you should know before you buy - Help Net Security

Are NFTs safe? 3 things you should know before you buy - Help Net Security

NFTs, or non-fungible tokens, have captured the attention (and wallets) of consumers and businesses around the world. This is largely in part to the big price-tag sales, such as the digital artwork by Beeple that sold for over $69M on Christie’s Auction House.

While discovering new and inventive ways to exchange currency is par for the course in the digital age we live in, being aware of the security risks associated and taking actions necessary to mitigate those risks will be imperative both in the short and long term.

What are NFTs?

NFTs are pieces of digital content that are stored on a blockchain, which is the same foundation for other cryptocurrencies, such as Bitcoin or Ethereum. The difference between NFTs and other cryptocurrencies like bitcoin is that NFTs are unique tokens, they cannot be replicated or traded with another equal NFT.

How secure are NFTs?

The short answer to this is not very secure. It’s no secret threat actors are motivated opportunists who will attempt to pilfer any asset, physical or digital, that holds value; and even though NFTs are still in their infancy from a market perspective, the rapid growth in popularity has opened a brand-new avenue for hackers. This isn’t just a forward-looking concern, but something that is already in motion.

In March, attackers compromised multiple Nifty Gateway NFT user accounts and were able to both transfer the previously purchased NFTs from their account and purchase new ones to transfer with their payment cards on file. While the users’ cash was recovered, the NFTs were lost to the attackers who promptly sold them to another NFT purchaser located ..