Many investors are now flocking and pouring billions into this new way of trading known as NFTs or Non-Fungible Tokens. The popularity of NFTs that started in 2021 has become a new target of hackers, just like how they target cryptocurrencies. During the third quarter of 2021, investors needed strict digital validation because weak authentication for NFTs can lead to a pricey mistake.
What is an NFT?
Investors use Non-Fungible Tokens to purchase digital artworks, digitally rendered paintings, memes, or even famous tweets. It is a means of declaring possession or putting a digital signature on a unique digital asset through blockchain—in this case, the NFT—because there is beauty in a prized digital possession, and this only shows that people are willing to buy it.
NFTs are created with specific codes for identification on the blockchain, making its value an asset. Currently, NFTs are not only enclosed in visual mediums. There are now nine main categories of NFTs:
- Video Games Items
- Trading Cards and Collectibles
- Sports Highlights
- Memes and GIFs
- Culture Items
- Virtual Fashion
What are the Security Vulnerabilities in the NFT Market?
With the rapid increase of investments in the NFT market, a person’s digital wallet, other cryptocurrencies, and NFTs are in danger of being targeted by hackers through phishing and SIM swap modus.
Most stories of compromised digital wallets are due to users’ ignorance about strong authentication and only using a simple password to protect their accounts.
How to Protect NFTs from Hackers?
Anyone with a digital wallet or digital asset must be careful. The use of passwords is the least safe of them because it is the most accessible type of security that hackers can break through account takeovers. For this reason, authentication like FIDO (Fast Identity Online) authentication acts as a private key for your digital accounts. With biometrics or face identification, there is a greater chance for safer digital trade and banking.
Learn more about how to protect your digital accounts and NFTs through this infographic. And for a secure, private authentication for the future – LoginID.