As the NFT market continues to increase its adoption, bad actors have also fallen prey to emerging markets. Earlier today, Crypto wallet security team ZenGo released a dashboard aimed at helping investors detecttrack and monitor potential non-fungible token (NFT) hacks using offline signatures OpenSea NFT Market.
Offline signatures are offline systems that allow transactions to be authorized with private keys that remain offline. The dashboard by the ZenGo security team is built using a simple method that involves comparing data.
ZenGo Security Team Releases Dashboard To Detect NFT Hacks
According to the wallet security team, the main idea behind creating a NFT hack detector dashboard is quite simple: compare the number of NFT lists with the number of trades of the floor price of the NFT collection.
“If an expensive NFT is traded through OpenSea for a very small amount compared to its estimated value, then it is worth it likely to scam“, the team noted in a blog post published on February 22.
So far, the dashboard has flagged up to $25 million worth of NFTs hacked through offline signatures as potential hacks. The dashboard uses data from the crypto data analytics platform, Dune, to initiate the same detection logic.
In addition to being an NFT hack detector, the dashboard provides searchable and sortable graphs that include specific hack online update tables with many details and links relevant to Etherscan as well as attackers, victims, and hacked NFT collections. The ZenGo team notes.
We believe this data, available as a public dashboard with various charts and graphs, can be a valuable resource for other security researchers, the NFT community (who can filter the data to include only NFT collections), and wallet users.
ZenGo To Launch EIP Products
Furthermore, the ZenGo team also mentioned collaboration with The Ethereum Foundation, several decentralized applications (dApps), and other wallets to support the Ethereum Improvement Proposal (EIP) designed to solve potential hacking problems.
Notably, at increasing interest in NFT started in 2021 in the middle of the crypto bull run. Fast forward to years later, and that interest turned to skepticism after a phishing attacks which cost Opensea users $1.7 million worth of NFTs that started.
The attack began when OpenSea was updating its contract system. However, the NFT market denied the attack stemmed from a new contract, making details of the attack at least vague.
Meanwhile, the NFT market has seen a decline in trading volume over the past year. In contrast, the global crypto market has declined in the past year, falling from a peak above $2 trillion to below $900 billion last year.
However, over the past month, the crypto market has rebounded, surpassing the $1 trillion mark earlier this year for the first time in months. At this writing, the global crypto market registered a small loss, down 2.7%, as Bitcoin and Ethereum fell below $24,000 and $1,700 respectively.