Tricks Attackers Use To Scam People Buying NFTs

Cisco Talos researcher, Jaeson Schultz has uncovered several tricks cybercriminals could use to defraud users buying or minting NFTs. This includes malicious smart contracts, sleepminting, and seed phrases.

The seed phrase is a representation of a long string of random numbers. A digital wallet uses it to generate the private keys that let users send and spend their crypto.

Bad actors, therefore, disguise themselves as customers service agent while offering to help users as long as they provide the seed phrase for their wallet.

Sleepminting involves attackers using malicious smart contracts to mint NFTs to other people’s wallets. The minted NFTs are then transferred from those other wallets so the NFT can be sold to an unsuspecting buyer.

Steps NFT buyers can take to protect themselves include using good security fundamentals (solid passwords, MFA), and examining internet, ENS domain, and crypto wallet addresses.

Others include using a hardware wallet to add another layer of security, rejecting every request to disclose their seed phrases, researching their purchases, and verifying the source code of a smart contract before buying anything.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

ITW in your inbox

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

More Best of The Web