As the NFT market has continued to increase adoption, bad actors have also grown to prey on the developing market. Earlier today, the Crypto wallet ZenGo security team released a dashboard aimed at helping investors detect, track and monitor potential non-fungible token (NFT) hacks using offline signatures on the OpenSea NFT marketplace.
Offline signatures are an offline system that allows authorizing transactions with private keys kept 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’s security team, the main idea behind creating the NFT hack detector dashboard is pretty simple: it compares the listing amount of an NFT to the trade amount of the NFT collection floor price.
“If a valuable NFT was traded through OpenSea for a very low amount compared to its estimated value, then it’s highly likely to be a scam,” the team noted in a published blog post on February 22.
So far, the dashboard has flagged up to $25 million worth of NFTs hacked via offline signatures as potential hacks. The dashboard leverages data from the crypto data analytics platform, Dune, to initiate the comparable detection logic.
Aside from being an NFT hack detector, the dashboard provides searchable and sortable charts that include an online updating table of a particular hack with many details and relevant links to Etherscan as well as top attackers, victims, and hacked NFT collections. The ZenGo team noted.
We believe this data, conveniently made available as a public dashboard with multiple charts and graphs, can serve as a highly valuable resource for other security researchers, NFT communities (that can filter the data to include only their NFT collections), and wallet users.
ZenGo To Launch EIP Product
Furthermore, the ZenGo team also mentioned a collaboration with the Ethereum Foundation, several decentralized applications (dApps), and other wallets to support its drafted Ethereum Improvement Proposal (EIP) aimed at solving potential hacking issues.
Notably, the surging interest in NFT began in 2021 amid the crypto bull run. Fast forward to a year later, and that interest turned into skepticism after a phishing attack that cost Opensea users $1.7 million worth of their NFTs was initiated.
The attack initially took place while OpenSea was in the process of updating its contract system. However, the NFT marketplace denied the attack originated from its new contracts, making most attack details unclear.
Meanwhile, the NFT market has plummeted in trading volume over the past year. In contrast, the global crypto market has declined over the past year, falling from its peak of above $2 trillion to below $900 billion as of last year.
However, over the past month, the crypto market rebounded, surpassing the $1 trillion mark earlier this year for the first time in several months. As of this writing, the global crypto market is recording small losses, down by 2.7%, as Bitcoin and Ethereum slip below $24,000 and $1,700, respectively.