Experts Recommend This Top Strategy to Prevent NFT Theft

In the Web3 space, professionals highlighted various tools

and best practices to protect NFTs from hackers and scammers.

As nonfungible tokens (NFTs) gain popularity, scammers' attention is drawn to them. Web3 bad actors have set their sights on digital collectables, causing millions to be lost through scams and other attacks.

However, according to Web3 professionals, there are numerous ways and tools to avoid becoming a victim of NFT theft. Furthermore, users can take a variety of actions after losing their digital collectables due to hacks.

According to Ronghui Gu, co-founder and CEO of blockchain security firm CertiK, the first and most important step is always due diligence. "Avoid clicking on suspicious links and exercise extreme caution when signing token approvals," Gu advised.

To take it a step further, the CEO revealed additional recommended practices including routinely reviewing and revoking superfluous permissions and dividing NFTs into several wallets based on their purpose. Additionally, he said:

“Long-term holds should be kept in a secure wallet that interacts minimally, if at all, with applications. Hardware wallets have a somewhat steep learning curve, but the time investment is worth it.”

When asked what can be done in the event that assets are lost, Gu responded that while it's regrettable, there is "not a lot" that users can do to retrieve them. NFT markets have the option to place an NFT on a "blacklist," which prevents trading of that NFT. The first approach is to educate people on the safest ways to transact and how they can minimize their risk, he continued, adding that there is an ongoing effort to raise awareness of typical frauds.

Michael Pierce, CEO of Web3 security company NotCommon, cautions that there are still hazards associated with hardware wallets even though they may be a great solution. After that, he added these words :

“People should buy the hardware directly from the manufacturer to  minimize any chance the wallet has been tampered with before the person receives it.”

In the meantime, if the scam or attack had already occurred, Pierce advised victims to report it to databases such as NotCommon "to help keep others safe and identify the scammer." If the potential losses are significant, the executive encouraged victims to seek legal recourse if possible.

Mohamed Issa, a senior strategist at data firm Chainalysis,  shared some insights on the topic. According to Issa, as NFTs become the most rapidly growing areas of crypto, they are becoming a "go-to target for hackers." He explained:

“NFT transactions are creating a new challenge for cryptocurrency investigation as decentralized protocols are more complex and very difficult to trace compared to traditional centralized services.”

Issa also spoke about the significance of taking preventative measures when a theft occurs. He argues that even while it's crucial to report scams and hacks to law enforcement, NFT holders may safeguard their investment with tools like Storyline, an analytical program developed by their company.

Issa believes that the tool will allow users to assist investigators after they have been hacked and will allow them to focus on the transactions and funds that are most important.

Alvin Kan, BNB Chain growth operations director, also mentioned that users can use tools like revoke.cash to check wallet status and revoke approvals, as well as browser extensions that provide risk warnings before signing contracts.

Kan said that the community is working to provide more NFT-specific security tools within the BNB Chain ecosystem. Kan discussed GoPlus, an NFT tool that detects NFT authenticity, as well as other chain-wide initiatives such as DappBay's Red Alarm and AvengerDAO, which he believes help users stay one step ahead of scammers. He went on to say:

“These tools, with the contribution of the ecosystem projects, assess project risk levels in real-time and alerts users of potentially risky DApps so that users do not interact with malicious DApps and contracts.”

Kan highlighted the importance of contacting NFT marketplaces after becoming a victim of a hack or scam. When everything else fails, the executive suggested that burning the token be the last resort. Contacting the NFT project and requesting that the affected or stolen token be burned may be the final solution.

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