NFT Art Wallet Security and Scams Questions and Answers

Question 1

You receive an unexpected direct message on social media from an account impersonating a famous NFT artist.
The message contains a link to a 'surprise free mint' for their new collection.
What is the most secure course of action?

Accepted Answer

Ignore the message, block the user, and verify any official announcements on the artist's verified public channels.

Answer

Use a 'burner' wallet with minimal funds to mint from the link, just in case.

Answer

Connect your main wallet to the site to check if it's legitimate, but do not sign any transactions.

Answer

Reply to the message to ask for proof that they are the real artist before clicking the link.

Question 2

What is the primary function of a 12 or 24-word 'seed phrase' (or recovery phrase) for a non-custodial crypto wallet?

Accepted Answer

It is a master password used to restore access to all assets associated with the wallet if the device is lost or broken.

Answer

It is a public key used to receive NFTs and cryptocurrency from others.

Answer

It is a temporary password that changes daily to enhance security against hackers.

Answer

It is an encryption key for individual NFT files to prevent them from being copied.

Question 3

Which of the following is the most significant security advantage of using a hardware wallet (cold storage) over a software wallet (hot storage) for storing high-value NFTs?

Accepted Answer

Hardware wallets store private keys offline, making them immune to online threats like malware and phishing attacks.

Answer

Hardware wallets allow for faster transaction speeds on the blockchain.

Answer

Hardware wallets are typically free, while software wallets have subscription fees.

Answer

Hardware wallets can store an unlimited number of NFTs, whereas software wallets have a storage limit.

Question 4

While attempting to list an NFT on a new, unverified marketplace, your wallet prompts you to sign a transaction with a 'Set Approval For All' request. What is the primary risk of approving this type of transaction on a malicious site?

Accepted Answer

It allows the site's smart contract to transfer ALL NFTs from that specific collection out of your wallet without further permission.

Answer

It gives the site permission to burn all the NFTs in your wallet.

Answer

It permanently links your wallet to the site's IP address, compromising your privacy.

Answer

It only gives the site permission to transfer the single NFT you are trying to list.

Question 5

A scammer joins a project's Discord server, impersonates a member of the support team, and contacts you via direct message to help with a 'wallet issue'. They ask you to share your screen to guide you through the process. This is an example of what kind of attack?

Accepted Answer

Social engineering

Answer

A blockchain 51% attack

Answer

A smart contract exploit

Answer

A Denial-of-Service (DoS) attack

Question 6

You are interacting with a website and sign a transaction that you believe is for a simple action, like signing in. However, you later discover that NFTs have been transferred out of your wallet without a separate 'transfer' confirmation. What type of scam most likely occurred?

Accepted Answer

Ice phishing

Answer

A rug pull

Answer

Wash trading

Answer

A pump and dump scheme

You receive an unexpected direct message on social media from an account impersonating a famous NFT artist.The message contains a link to a 'surprise free mint' for their new collection.What is the most secure course of action?

You receive an unexpected direct message on social media from an account impersonating a famous NFT artist.
The message contains a link to a 'surprise free mint' for their new collection.
What is the most secure course of action?