The non-fungible token (NFT) boom has also led to some serious security incidents. For example, the number of suspicious-looking domain registrations with names of NFT stores increased nearly 300% in March 2021.
To participate in an NFT marketplace, you must have an active cryptocurrency wallet. This exposes NFT holders to new risks as attackers can find ways into your crypto wallet through your marketplace account.
As we’ll see, threat actors have even infiltrated NFT marketplace OpenSea’s Discord server posing as support staff to trick targets into sharing account access. Some use old-fashioned phishing techniques to lure NFT holders into transferring funds or giving up credentials. Let’s dig deeper into the emerging threats that heighten NFT security risk.
The NFT Boom and Security
In 2021, the NFT market was worth at least $40 billion. In January 2022, 2.4 million NFTs were sold on OpenSea, the world’s largest NFT marketplace. This was an increase of a million sales compared to December 2020. NFT sales by value also shattered records in January, with over $4.8 billion sold on OpenSea alone. Even traditional auction houses like Christie’s and Sotheby’s are now holding their own token auctions. With that much financial activity going on, threat actors were bound to take notice.
Old Fashioned Phishing and NFT Fraud
In February 2022, scammers stole hundreds of NFTs from OpenSea users with 254 tokens stolen during the attack….
