NFT Wallet Security and Scams 4

Question 1

Which on-chain tool allows you to review and revoke token approvals you have previously granted?

Accepted Answer

Etherscan's token approval checker or Revoke.cash

Answer

Tools like Revoke.cash and Etherscan's token approval section let you see and cancel active approvals before scammers can exploit them.

Question 2

What is 'social engineering' in the context of NFT scams?

Accepted Answer

Manipulating people psychologically to reveal private keys or sign malicious transactions

Answer

Social engineering exploits human trust and emotion rather than technical vulnerabilities to trick victims into compromising their own wallets.

Question 3

A pop-up on an NFT site says your wallet is 'compromised' and asks you to enter your seed phrase to secure it. What is this?

Accepted Answer

A phishing attack designed to steal your seed phrase

Answer

No legitimate service ever asks for your seed phrase; this is a classic phishing technique to gain full control of your wallet.

Question 4

Which action is considered best practice before interacting with a new NFT smart contract?

Accepted Answer

Checking the contract's audit status and reading community feedback

Answer

Reviewing third-party security audits and community reports helps identify red flags before committing funds to an unknown contract.

Question 5

What is 'wash trading' and why is it considered deceptive in NFT markets?

Accepted Answer

Selling an NFT between wallets you control to inflate apparent trading volume and price

Answer

Wash trading creates the illusion of demand and rising prices by cycling an NFT between self-controlled wallets, misleading genuine buyers.

NFT - Art Practice Test