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NFT Security: Protecting Your Digital Collectibles

2023-03-06

Main Takeaways

  • When exploring the world of NFTs, you must follow good security practices to keep your assets safe.

  • There is always a risk of phishing scams, confidence tricks, and other types of attacks that could result in the loss of assets.

  • By using Binance NFT, you can safeguard yourself from some of the most common scams and issues.

Getting into the NFT world doesn’t have to be dangerous, but it does require some developing a security-first mindset.

Security must be the top priority when handling our precious crypto assets. Mind that it’s not just tokens like bitcoin (BTC) or BNB that bad actors have in their sights: NFTs are also common targets! Luckily, most of the potential risks and techniques to mitigate them are quite similar for both non-fungible and fungible digital assets. 

Let’s take a brief look at what you should be wary of when dealing with NFTs, how you can protect yourself, and what a platform like Binance NFT can do to help mitigate your risks.

What Is NFT Security and Why Is it Important?

NFT security is all about keeping yourself and your non-fungible tokens safe as you explore the multitude of opportunities that Web3 offers. A huge part of it is maintaining a security-first mindset and upholding practices that are instrumental in preventing fraud, theft, and unauthorized access to your data and assets. It is especially vital in the crypto world, as once your asset is gone or lost, there’s almost always no way to return or replace it.

As the NFT industry is young and attracts a lot of newcomers, many people begin investing without conducting enough research. This can make them easy targets for phishing attacks or social engineering scams. The more we can combat these security issues, the more trust and confidence we can all have in the NFT marketplace.

What Are the Most Common NFT Security Risks?

The risks we see in the NFT space are mainly the same as in crypto as a whole. Most will rely on tricking you into using an unsecured service or handing over your assets to a bad actor. By far, the most common we see are: 

  • Fake websites that copy well-known and trusted NFT marketplaces and services.

  • Phishing attempts via social media, email, or messaging platforms and apps.

  • Bad wallet management and storage of wallet seed phrases.

  • Underestimating the danger of social engineering. Many people think that only newcomers fall for these types of scams. However, a sophisticated social engineering scam will not always be blatantly obvious.

How Binance NFT (BNFT) Strengthens NFT Security

To improve the security of the Binance NFT ecosystem and its participants, the BNFT team has put several measures and features in place.

One key area is risk monitoring. The Binance security team focuses on tracking abnormal transactions, login behavior, and other patterns to help ensure user account security. From the moment you log in, the system is on the lookout for any abnormalities that may indicate that your account has been compromised.

Product features that ensure security include setting account limits, facial verification for withdrawing NFTs, Anti-Phishing Code, and two-factor authentication for your account. For example, when a user attempts to withdraw an NFT, they have to verify the codes through 2FA, email, or their registered phone number. Our system will also perform a risk control check.

If you ever find yourself in a situation where you think the Binance team should review a specific NFT or collection, you can file a report. To report an NFT, click on the exclamation mark button next to the item name on the NFT detail page. The moderation team will investigate any user report of fraudulent or malicious content before taking the necessary action. 

Binance also has a roughly $1 billion (USD) SAFU investor protection fund to deal with the potential loss of user assets in the event of a security breach.

Keeping Your NFTs Safe

There’s no doubt that the blockchain technology underpinning NFTs is highly secure. However, this doesn’t mean you shouldn’t always be careful when handing your NFTs. There can always be malicious actors looking to part you from your assets.

The following tips are a great place to start when it comes to keeping you and your NFTs safe:

  1. Use two-factor authentication wherever possible for your exchange accounts and hot wallets. Cold storage is also a secure option for storing your NFTs.

  2. Carefully check any website you use to ensure it's legitimate and not a phishing device.

  3. Don’t connect your wallet to any DApp until you know it’s trustworthy.

  4. Practice due diligence on any message you receive regarding an NFT project, giveaway, or other NFT opportunity.

  5. Use only trusted and respected exchanges for selling or listing your NFTs. This is especially relevant when you have to provide custody of your NFT to the exchange.

Improve Your Security With Binance NFT

As BNFT is part of Binance’s product suite, it shares all of Binance’s security measures and processes for protecting its users’ assets. With good security habits also on your side, you can enjoy a highly secure experience while exploring the NFT world. Whether you’re looking to buy, sell, or even create your own NFTs, working within Binance NFT is a way to stay on the safe side of Web3.

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