Stolen NFTs: How to Protect Your Digital Art from Theft

According to reports, PeckShield monitoring shows that the total amount of stolen NFTs in March 2023 was approximately $10.9 million, a decrease of 32.72% from the previous month. Among them, 50% of stolen NFTs were quickly traded within 2 hours, 74.9% were sold on the Blur platform, and 19.5% were sold on the OpenSea platform.

The total amount of stolen NFTs in March reached $10.9 million, of which 74.9% were sold on the Blur platform

The blockchain technology has given birth to a virtual asset class called Non-Fungible Tokens, or NFTs. NFTs are digital assets that are unique and non-interchangeable, allowing creators to sell their artworks in digital form. The growing popularity of NFTs has caught the attention of cyber criminals, who are always on the lookout for the next big thing to exploit. Reports show that the total amount of stolen NFTs in March 2023 was approximately $10.9 million, a decrease of 32.72% from the previous month. This article discusses the measures you can take to protect your NFTs from theft.

The Risks of NFT Theft

Like other digital assets, NFTs are vulnerable to hacking, phishing, and other forms of cyber attacks. Once an NFT is in the hands of a hacker, they can easily sell it off or use it as leverage to get other valuable data. It is imperative that NFT owners understand the risks associated with NFT theft and take proactive measures to prevent it.

Best Practices to Prevent NFT Theft

Store Your NFTs in a Secure Wallet

The first step to preventing NFT theft is to store your NFTs in a secure wallet. Your NFT wallet should have strong encryption, 2-factor authentication, and other security features that make it difficult for hackers to gain access. Avoid storing your NFTs in online wallets or exchanges as they are more prone to cyber attacks.

Use Watermarks and Copyright Notices

Adding a visible watermark or a copyright notice to your digital artwork is a simple and effective way to deter theft. The watermark should be inconspicuous but legible, and it should be placed in a way that does not detract from the artwork. The copyright notice should be clearly visible and should indicate that the artwork is protected by copyright laws.

Be Wary of Suspicious Activity

Keep an eye out for any suspicious activity related to your NFTs. Report any unauthorized access or account activity to your NFT platform immediately. Check your NFT transactions regularly and verify any transfers that you did not initiate.

Use Unique Certification Services

Using a unique certification service for your NFTs is a great way to make sure that your digital artworks remain exclusive. This helps in tracking the ownership of the NFTs and prevents duplication, which can reduce the value of your NFTs. Blockchain-based certification services are the most secure and reliable options for NFT owners.

Where are Stolen NFTs Sold?

According to PeckShield monitoring, 50% of stolen NFTs were quickly traded within 2 hours, 74.9% were sold on the Blur platform, and 19.5% were sold on the OpenSea platform. This is a clear indication that the stolen NFTs are being traded on popular marketplaces that are not doing enough to verify the authenticity of the NFTs. NFT owners should only trade on reputable platforms that have stringent measures to protect the NFTs.

Conclusion

As NFTs continue to gain popularity, the risk of cyber attacks will also continue to increase. But by taking proactive measures such as secure storage, watermarking, and certification, NFT owners can protect their digital assets from theft. Additionally, only using reputable trading platforms that have strict security measures can help prevent the sale of stolen NFTs.

FAQ

Q: Can NFTs be traced after they have been stolen?
A: Yes, NFTs can be traced back to their original owners using blockchain technology, making it easier to recover them if stolen.
Q: Are online wallets safe for storing NFTs?
A: Online wallets are not the safest option for storing NFTs, as they are more vulnerable to cyber attacks. It is best to use a cold or hardware wallet.
Q: How can I verify the authenticity of an NFT before buying it?
A: Check the reputation of the seller, the NFT platform’s verification process, and the blockchain certification of the NFT before making any purchases.