A Brief Understanding of NFT Security and Its Issues  
                     A Brief Understanding of NFT 
Security and Its Issues
NFT, defined as Non-Fungible tokens, are virtual assets that are 
trackable in the crypto world, and each virtual asset has its 
unique nature. The value of NFT depends on many factors such 
as minting number, market demand, particular traits, and the 
community behind the asset. With great popularity comes the 
great concern, NFTs are growing in popularity, and the concern 
is NFT security. NFT constitutes the rapidly growing technology 
of the world that further promotes tokenization of the economy. 
As more people are getting involved in the adventure of digital 
money, it is essential to understand the requirement of a digital 
asset vault and the opportunities and risks associated with the 
asset class. 
The NFT sector has shown remarkable growth over the past few years 
despite the recession across the cryptocurrency market. Let’s get 
deeper into NFT security and its issues. 
One of the significant NFT risks threatening investors and projects is 
scams. Hackers and vindictive people use popular platforms, wallets, 
or exchanges to steal users’ data required to access their virtual 
assets, thus affecting NFT
security. 
 
Phishing is one such cybercrime that is widespread in the digital world. 
One of the latest reports of Phishing came forward in January 2022 
when the hackers tricked supporters of CrytpBatz (an NFT project). 
The scam was executed using an old URL and creating a fake Discord 
server. You can opt for a digital asset vault by Anonybit secured by 
Turnkey biometric authentication to protect your digital money. 
1. Marketplace Security 
NFTs thrive from a centralized digital platform that 
allows individuals to buy and sell virtual assets. 
Platforms like Nifty Gateway and Open Sea own the 
private keys of all assets on their platforms. If their 
platform is attacked, a hacker can steal many NFTs. 
Even if the marketplace has a robust security system, 
individual hacks can continue to happen due to weak 
security by platform users. It may be a weak password, 
email scam, or no 2FA, to which users can lose their 
wallets and digital assets. 
2. Cyber security issues and NFT fraud 
Hackers try to access the user’s data through vindictive emails. 
These emails look like they come from a trusted source, but they 
are not. Hackers inform users that some suspicious activity is 
seen on their account, and they need to provide a login id and 
password to verify their identity. With the help of a login id and 
password, these hackers then access the user’s account and 
steal the NFT
3. Smart Contract Risk 
NFT smart contracts can be exploited to benefit hackers. Smart 
contracts are used in NFT to explain the limitations of virtual 
assets and develop trust between the parties involved in the 
trade of NFT. There is a high-level risk of smart contract NFT in 
the market. If the rights governing statement is not clearly 
outlined in the contract, an NFT seller can lose his assets. 
The NFT world is still in its infancy; as the opportunities grow, so is 
the risk. Contact Anonybit to get solutions for your NFT security.