OpenSea Working Hard to Prevent Scammers from Flipping Stolen NFTs

OpenSea worried about NFT scams and aThefts.

Since the last few months, crypto thefts and scams are constantly increasing, and several companies are working hard to overcome the risk of thefts and scams.

Earlier this week, PeakShield, released its report focused on hacks that occurred in the crypto sector in the month of October.

On 2 November 2022, OpeanSea announced that it would begin freezing sales for NFTs suspected to have been stolen to prevent scammers and hackers from flipping erroneously obtained tokens.

In the blog post, the company noted that it is “beginning to test a new system,” which will highlight the NFTs identified as suspicious transactions as “under review,” barring people from purchasing those using Opensea.

While talking to a crypto news outlet Anne Fauvre-Willis, Vice-President at OpenSea of Operations, marketplace, and integrity, noted that the system would look at “several industry data sources,” in addition to how the NFT was transferred out of the user’s wallets involved had going on around the time of the transfer.

What are NFTs, and How its work?

In simple words, NFTs mean a piece of work with its own qualities and unique value in the market. NFTs work on blockchain technology. It confirms the ownership and makes it undisputable, where all the records of sales and purchases are verified. Despite being secured by cutting-edge blockchain technology, and encrypted, these NFTs are not entirely safe, and it clarifies more while looking at all its high-profile scams and frauds.

This year in February, there was a phishing attack on users of the prominent NFT marketplace OpenSea. In this attack, hackers had high-value tokens on their target, including BAYC NFTs. Estimates say that about $1.7 million worth of loss was made during the attack.

According to data sources of DappRadar the overall NFT transaction on the marketplace also saw a drop of 98% from 406 million USD in May to 7.63 million USD.

Bored Ape Yacht Club (BAYC) is the top NFT collection over the platform, its floor price has also seen a drop from its peak of 144.9 ETH to 64.78 ETH. Meanwhile, the floor price of another popular NFT, CryptoPunks, also went through a similar fate, witnessing a drop from 122 ETH to 100 ETH.

Users are becoming more aware of the risks associated with trading and how to protect their NFTs. If you already possess an NFT or plan to buy one or more, it’s vital to know how to prevent being a victim of an NFT scam.