<h2>NFT hack has happened more recently</h2><p dir="ltr">Over the last decade, there has been an increase in <a href="https://www.builder.news/news/defi-hacks-and-heists-hsfBc" alt="10 Biggest DeFi Hacks and Heists" title="10 Biggest DeFi Hacks and Heists" target="_blank" rel="" class="">blockchain network attacks</a>. Especially, NFT projects became the prey of hackers, as the number of attacks targeting NFT spiked in the first half of this year. As the NFT field becomes more popular, NFT hackers even use a variety of tactics to steal NFT assets. The following is a breakdown of some common methods.</p><h3>Exploiting webhooks</h3><p class="prosemirror-p-center"><img src="https://lh3.googleusercontent.com/dUuTvLzCUJhPOkWkEPJ6qdChBPntEN-bFBsPXbSLUt1RwJZvVnBuKXAoEXBrbT6lL6ZP9ZVxKcChfzTdRr9FUOjjTcvxfYGOUQhd_GR5bZp1m6d0MWNgEmC1Rakmie6pSnJ8JG0EL5G4H4lk8q-P9AE" alt="Exploiting webhooks NFT hack" title="Exploiting webhooks NFT hack" width="624" height="312"></p><p dir="ltr">Webhooks are bespoke API calls that allow online property monitoring and can be configured to deploy when particular criteria are met. Webhooks are often used to push live notifications in online crypto and blockchain groups, and they are frequently targeted by bad actors attempting to fool unsuspecting people.</p><p dir="ltr">Attackers use them to send false notifications aimed to deceive users into giving their NFT wallet keys or transferring their assets.</p><h4>Exploiting webhooks hack example</h4><p dir="ltr">Hackers targeted the Fractal marketplace Discord channel in December 2021, exploiting the channel's webhook mechanism. By releasing a phony NFT mint announcement, the attackers were able to trick members into handing away their Solana coins. The operation was effective because the channel's anti-spoofing measures were lax. Despite the fact that the breach only lasted roughly 10 minutes, over 800 Solana coins worth approximately $150,000 were taken.</p><p dir="ltr">During the same time period, Monkey Kingdom, another Solana-based NFT project, was also victimized by a similar Discord webhook scheme. The criminals allegedly made off with around $1.3 million in Solana coins.&nbsp;</p><h3>Failure to activate 2FA</h3><p class="prosemirror-p-center"><img src="https://lh3.googleusercontent.com/b6R-KtH0y26PeahEYxZhG_ae4GY17Hx5dhdlrKrXAGX78ixFYy6uFQ6PAKxZwj9-ZRnao701HMj_oGq8N0dUibs8pl9CHPLxx53TOXd4JFpmZh5lTVC4caJ4KBkFpvPGgO1wlWWKWTYuhLBlvl2O5CY" alt="Failure to activate 2FA NFT hack" title="Failure to activate 2FA NFT hack" width="624" height="441"></p><p dir="ltr">Hackers are increasingly targeting NFT users who do not have sufficient wallet security protections, particularly those that store their money on marketplace hot wallets. According to recent research, a large number of NFT investors fail to activate conventional security features such as two-factor authentication (2FA). Hackers can easily breach into NFT marketplace accounts without this additional protection layer by using scraped login credentials and brute-force approaches.</p><p dir="ltr">The 2FA capability is available on the majority of NFT marketplace accounts. Users must provide a code sent to their associated phone number or email address during the verification process. Each 2FA code is unique and should only be used once.</p><h4>Failure to active 2FA hack example</h4><p dir="ltr">Nifty is one NFT platform that has had some of its user accounts compromised as a result of this mistake. The March 2021 assault targeted users who had failed to activate their account's 2FA security feature. Investigations into the intrusion revealed that the hackers logged into the accounts using authentic login credentials.</p><h3>Phishing schemes</h3><p class="prosemirror-p-center"><img src="https://lh6.googleusercontent.com/XDv1X7BNpdFlY4TzZEFU1mFE9gjHNlX4bjIm1YvdnEBAt8ctxbHkk5ioE2evh6CpM21w-CXY7TC8hm4S0CCgNIxWpivoxY6uqnR6iER0DAWkK6h1by3HHbTDdCUJyqhrMQhztcG71-b9aWB0XJGIM6s" alt="Phishing schemes NFT hack" title="Phishing schemes NFT hack" width="624" height="415"></p><p dir="ltr">Phishing methods are sometimes used by cybercriminals to steal NFTs. The most recent phishing techniques target not just user passwords but also automate account access by altering smart contract permissions.</p><p dir="ltr">In terms of how phishing attacks work, hackers that employ this tactic design a website that seems similar to one that a target frequently visits. Victims are typically duped into clicking a link to the website and inputting their login information. This data is collected via scripts inserted on the phony website and then utilized by hackers to get access to victims' accounts on the genuine website.</p><p dir="ltr">Phishing attempts aimed towards NFT wallets also employ a more advanced approach known as ice-phishing. Users are simply duped into connecting their wallet to a customized app - generally to "get a prize" - rather than inputting credentials on the bogus website. However, the program adjusts wallet permissions to allow the hacker to transfer all assets from the wallet to an address controlled by the hacker.</p><p dir="ltr">One of the most bizarre characteristics of this type of attack is that the hacker can choose to wait until a wallet has enough funds before conducting a transfer. Because no login information is provided, it is difficult for unskilled users to determine when and how an assault occurred. An examination of signed permission records, on the other hand, will expose these facts.</p><h4>Phishing schemes hack example</h4><p dir="ltr">The infamous OpenSea attack in February 2022 is an example of a sophisticated ice-phishing campaign. It resulted in the theft of hundreds of NFTs from dozens of platform users. Over 250 NFTs worth approximately $1.7 million were stolen. According to reports, the hacker duped victims into executing a smart contract authorizing a private sale of their assets to him for 0 ETH. However, luck came to some victims, the hacker returned some unsold NFTs after that.</p><p dir="ltr">Another example happened&nbsp; in April 2022 when BAYC's Instagram account was hacked and dozens of NFTs were stolen from users. The floor price for the stolen NFTs is close to $14 million. Besides, BAYC also suffered two attacks on Discord with losses of 69,000 USD and 200 ETH respectively.</p><p dir="ltr"><em><strong>&gt;&gt;&gt; You may also concern: </strong></em><a href="https://www.builder.news/crypto-insights/top-nft-scams-and-how-to-spot-them-hOWve" alt="Top NFT scams and how to spot them" title="Top NFT scams and how to spot them" target="_blank" rel="" class=""><em><strong>Top NFT scams and how to spot them</strong></em></a></p><h2>Advices to follow from the disastrous NFT hacks</h2><p class="prosemirror-p-center"><img src="https://lh4.googleusercontent.com/972Mi8XqF7lAsnsOcqpXTzzpA0h-L4GYLDgN6zNELd4ClGFfIGAovVM6r0DqtYvXFlyd28KwbI4jyi_oMVsbBT_QKTY_N1xV6CMZWmCLrzYWaHgoLTMzaP_l-neDaa_GCYkYjyZhhKDO--vkikUPyyE" alt="Lessons learned from devastating NFT hacks" title="Lessons learned from devastating NFT hacks" width="624" height="351"></p><p dir="ltr">The breach was the stuff of crypto users' nightmares, as monies just started disappearing from their wallets at random, and it took nearly a day for security experts to follow up and figure out what had happened. So, what can people do to ensure that similar situations do not happen again? In fact, no approach is failsafe, but here's some ínights to help people be more patient in such situations.</p><h3>Software crypto wallets might be utterly ludicrous</h3><p dir="ltr">People would think that a company dealing in crypto wallets wouldn't send emoji without encryption, but they would be mistaken. For example, in the case of the Slope hack on Solana, Slope looks to have committed one of the most heinous acts possible by passing users' seed phrases over the internet unencrypted.</p><p dir="ltr">The lesson here is that even if a company says security is a priority; even if it operates in an industry where security is critical; even if they pinky swear the user's asset is safe, people must remain watchful.</p><h3>Users should keep an eye to cryptography</h3><p dir="ltr">When setting up a crypto wallet, users usually see instructions telling them to keep their seed phrase and private key safe and not show them to anyone. People may also notice that advanced encryption is being used here, and if they lose both their seed phrase and access to their private key, they will never be able to recover their assets.</p><p dir="ltr">While this is true in some circumstances, if the wallet itself mishandles the user's seed phrase, even the most complex cryptographic precautions will be rendered ineffective.</p><h3>A hardware wallet is recommended</h3><p dir="ltr">A hardware cryptocurrency wallet is a device, generally like a USB stick, that allows users to store, spend, and receive cryptocurrency. It usually provides better protection than a software wallet, although it is a little more difficult to use.</p><p dir="ltr">When the hack begins to affect user wallets, the marketplace may suggest users to move their funds to a hardware wallet. In theory, that's sound advice, but most users don't have a hardware wallet on hand, and ordering one online and receiving it usually takes a few days.</p><p dir="ltr">One thing people may do, especially if they are dealing with significant sums of cryptocurrency, is to order a hardware wallet before calamity strikes. Trezor and Ledger are two companies that provide one. However, keep in mind that even hardware wallets might have security flaws, and the organizations that manufacture them can have poor security standards. For example, Ledger had a terrible data leak in which hackers obtained its users' names, home addresses, and other personal information. Trezor, on the other hand, has a solid security reputation but does not support Solana as of this writing.</p><h3>Centralized exchanges could be a better choice</h3><p dir="ltr">There's a saying in crypto: "Not your keys, not your coins." It means that if consumers keep their currencies with a third party, such as a centralized cryptocurrency exchange, they have no control over what happens to their assets.</p><p dir="ltr">In the instance of the NFT attack, the best thing users could do to protect their coins (assuming they didn't have access to a hardware wallet) was to transmit them to an exchange like FTX or Binance, as these exchanges were unlikely to be affected by the same issue. It was a good temporary safety measure; people could always relocate their coins somewhere once the dust settled.</p><p dir="ltr"><em><strong>&gt;&gt;&gt; Related articles: </strong></em><a href="https://www.builder.news/crypto-insights/nft-hacks-and-how-to-prevent-Fyvem" alt="Why there are more NFT hacks and how you should react to it" title="Why there are more NFT hacks and how you should react to it" target="_blank" rel="" class=""><em><strong>Why there are more NFT hacks and how you should react to it</strong></em></a></p><h2>Bottom lines</h2><p dir="ltr">In order to hack NFTs, hackers now use a variety of attack vectors. Fortunately, NFT marketplaces are beginning to provide more secure trading environments and upgrade their systems to prevent invasions. However, author believes that the number of blockchain attacks, including NFTs, will continue to rise in the coming years as use grows. Therefore, people should be on the lookout for any undesirable actions happening around their NFT and marketplace. In addition, people should also follow the news, quickly follow instructions in case their NFT is hacked to protect their assets.</p><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

From the second half of 2021 to the present, there have been many hacks from DeFi to NFT. The scale of hacks is also increasing, causing heavy damage to both users and the hacked platform. So what's the lesson for everyone after these hacks? Let's find out with Builder.news through the article below!