NFT Wallet Security and Scams 5

Question 1

What is a 'seed phrase' (recovery phrase) and what level of access does it grant?

Accepted Answer

A 12-24 word phrase that gives complete control over all assets in a wallet

Answer

A seed phrase is the master key to a wallet; anyone who has it can import the wallet on any device and control all its assets.

Question 2

How can you verify that an NFT collection listed on a marketplace is authentic and not counterfeit?

Accepted Answer

Check that the smart contract address matches the one published on the official project website

Answer

Scammers create identically named collections with different contract addresses; the only reliable verification is matching the official contract address.

Question 3

What is 'clipboard hijacking' malware and how does it threaten NFT users?

Accepted Answer

Malware that silently replaces a copied wallet address with the attacker's address

Answer

Clipboard hijackers monitor copy events and swap any detected wallet address with the attacker's, redirecting transfers without the user noticing.

Question 4

Why should you be cautious of NFT projects that promise guaranteed returns or fixed profit percentages?

Accepted Answer

Guaranteed returns are a hallmark of fraudulent investment schemes, not legitimate art projects

Answer

No NFT project can legally guarantee returns; promises of fixed profits are a classic sign of a Ponzi scheme or securities fraud.

Question 5

What should you do immediately if you suspect your NFT wallet has been compromised?

Accepted Answer

Transfer remaining assets to a new, secure wallet as quickly as possible

Answer

Moving assets to a fresh wallet with a new seed phrase is the fastest way to prevent further losses once a compromise is suspected.

NFT - Art Practice Test

NFT - Art Practice Test

NFT Wallet Security and Scams 5