In February 2022, OpenSea fell prey to a major phishing attack that resulted in over $1.7 million in nonfungible tokens (NFTs) being stolen from users. It wasn’t the only incident: Blockchain users reportedly lost $3.9 billion to fraudulent activity in 2022 alone. As we entered 2023, there was a chorus of promises to increase security within the crypto space. But, so far, things haven’t significantly changed. Companies that utilize blockchain still aren’t doing enough to prevent scams. If blockchain technology is going to see mass adoption, companies will have to change their approach from the bottom up. By focusing on education and implementing better processes to identify malicious activity, these platforms can better serve their customers as the space continues to grow. In the case of the OpenSea hack, victims were asked to sign an incomplete contract, seemingly at the platform’s request. While OpenSea’s core infrastructure was not hacked, the fake accounts were able to take advantage of the open-source Wyvern Protocol. Hackers were then able to use the owner’s signature to be transferred to a false contract that gave them ownership without having to pay for the NFTs.
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