In 2021, NFT or Non-Fungible token had become the hottest trend in the trading world. Many had shown their interests on the buzzword, even celebrities. With the trading volume skyrocketed in the third quarter of 2021, it is almost believable that NFT will become the next normal of the trading world in the future. However, will it remain forever in the trading world? Regardless the answer, the use of NFTs come with cyber risk. What are the cyber risk challenges associated with NFTs ?
Vulnerabilities in smart contract security
Most recently, cyber attack on Cross-Chain protocol Poly Network had causes the platform to experience losses for more than $600 million. It has been reported that the hackers successfully stole the fund by exploiting vulnerabilities in the smart-contract code. While, there had been news that the hackers had returned almost $300 million back to Poly Network, the incident proves that the even the immutable smart contract cannot discard the risk of cyber attacks.
Cyber security and identity fraud
The ever growing technologies do not only give opportunity for improvement in digital assets trading but also invites unwanted risk particularly cyber security challenges. With the advancement of technology, cybercriminals had gain advantages in creating Fake NFT store with the capabilities to mirror the logo and contents of the original NFT store. Moreover, this cyber crime may lead to people buying fake NFTs, thus facing copyright issues.
Inevitably, the advancement of technologies today are inseparable from cyber risks as the world is moving towards digital transformation which involve major data exploitation. NFT is not an exception. Nevertheless, as NFTs might becoming the mainstream in the next normal, let’s note that its relation to cyber risks had to be managed properly to avoid unplanned downtime or capital loss.
E-SPIN being active in helping enterprise customers to implement enterprise digital transformation technology to achieve scale, scope and speed. E-SPIN since 2005, already in the business of supply, consultancy, integration, training and maintenance of various supplies for enterprise customers and government agencies. Feel free to contact E-SPIN for your cyber exposure (risk, asset, vulnerability and threat management).