The Escalation of Crypto and NFT Scam Attacks Continues
This year has seen a significant rise in cryptocurrency and non-fungible token (NFT) scam attacks, costing investors millions of dollars. Even the biggest names in the industry have fallen victim to hacking. Recently, scammers executed a phishing attack, stealing a Lil Pudgy NFT on the Blur NFT market platform.
Phishing Attack Results in Stolen Lil Pudgy NFT
A blog post by PeckShield, a blockchain security company, confirmed that scammers managed to drain Lil Pudgy NFT #17799 on Blur through a phishing attack. PeckShield specializes in providing high-quality security services to enhance the security, privacy, and usability of the blockchain ecosystem.
Understanding Phishing Attacks in the Crypto Space
Phishing is a common type of cryptocurrency scam where attackers trick victims into revealing private keys or personal information. By masquerading as a trustworthy entity or person, scammers gain victims’ trust before stealing their crypto funds or NFTs.
Tips to Protect Yourself from Phishing Attacks
Crypto and NFT collectors can safeguard themselves against potential phishing attacks by following a few quick tips. These include being cautious about suspicious emails or links from untrusted sources, using strong and unique passwords for different accounts, refraining from sharing personal information like wallet addresses and private keys, and more.
November Sees an Increase in Crypto Scams Worth Over $348M
The crypto and NFT market experienced immense growth in November, attracting high prices, sales volumes, and attention from traders. Unfortunately, scammers and hackers took advantage of this hype to carry out fraudulent attacks. PeckShield’s data reveals that November witnessed an upsurge in Web3 hacks and exploits, resulting in over $348 million lost across 28 incidents. Notably, two attacks targeted projects associated with Justin Sun, draining $236 million in cryptocurrencies from Poloniex and HECOBridge & HTX (formerly Huobi).
Hot Take: Protect Your Crypto and NFT Investments
With the rapid rise of crypto and NFT scams, it is crucial for investors to remain vigilant. Stay informed about phishing attack methods and take proactive measures to protect your investments. By following security best practices, you can minimize the risk of falling victim to scams and ensure the safety of your crypto assets and NFT collections.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.