NFT Security: What You Need to Know

6 Cybersecurity Strategies to Protect Your NFT Assets

Non-fungible tokens (NFTs) can be bought, created, and tracked on blockchains. They’re gaining in popularity, and value, too. The most expensive to date is Pak’s Merge open edition, which sold for $91.8 million to almost 29,000 collectors.

However, NFT security is a significant concern. Cybercriminals love to target digital assets. They’ll try to hack into the smart contracts used to control NFT transactions. They’ll use tactics like phishing to gain access to your NFT wallet. If there is a vulnerability they can attack, they will.

If a cybercriminal modifies the smart contract or gains access to your wallet, you can lose the NFT. That could be millions of dollars lost — and because the market is currently unregulated, you may have little hope of seeing any of your money returned.

6 Crucial Strategies to Secure NFTs

Because NFTs are digital assets, you’ll need to employ cybersecurity solutions to secure them. Like the security strategies, you would use to secure cryptocurrencies and blockchain.

Here are six human and technical strategies to secure your NFTs against cyberattacks.

1.     Store NFTs in Cold Wallets

NFTs are stored in wallets, just like cryptocurrencies. Hot wallets are connected to the internet, making them vulnerable to cyberattacks. It’s best to store NFTs in a cold wallet — this is more secure but also less convenient. When you hold NFTs in a cold wallet, it is more challenging to make NFT transactions when your NFT is stored on a USB drive or similar cold wallet device.

2.     Employ multi-factor authentication

Whether you hold your NFTs in a hot or cold wallet, make sure that you utilize multi-factor authentication. This multiplies the difficulty of the challenge a cybercriminal will face when trying to hack into your NFT wallet.

3.     Beware of Phishing Emails

Phishing scams are among the most common attacks you’ll receive on your NFT assets. An authentic-looking email, seemingly from official sources… Get good at questioning everything and sharing nothing — unless you can be 100% certain that you communicate with genuine people.

4.     Never Click on Suspect Links

There are whole communities surrounding NFTs. You may receive what looks like an innocuous message from a community member but may include a link to a helpful website. Or an image for you to open. Or an ad to click on. Please don’t do it! If you do, your device could be infected with malicious code. If something looks suspicious or too good to be true, ignore it.

5.     Use VPN Services

VPNs are essential for protecting your data and personal information. They also provide protection against hackers and snoopers who want to access your data, steal your identity, or your NFTs. It’s an added layer of protection that offers extra encryption and security protocols, including disguising your IP address and location.

6.     Utilize Password Management

Password management tools are designed to generate, store, and manage passwords so that you don’t have to do it yourself. These tools store your passwords securely in an encrypted database and log you in automatically once your credentials are verified.

Be Prepared For All Types of NFT Security Risks

As cyber criminals become increasingly innovative in their attempts to hack into NFTs, NFT security strategies are becoming more complex. There are many ways in which you could be targeted. We’ve outlined a few in this article, but you should also take precautions against crypto wallet cracking, fake NFT support, digital art scams, malware, and theft of NFTs by mining bots.

When developing your security strategies, the starting point should always be to assess your current vulnerabilities. You can devise suitable options to build upon your strengths and eliminate weaknesses. To learn more about our blockchain risk assessment methodology, contact Tiro Security today.

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