NFT security issues are stopping 68% of Americans from getting involved according to new data.
7 /10 Americans Aware Of Security Risks of NFT
A new study from the cybersecurity leaders at NordVPN has found that nearly half of Americans are now somewhat familiar with NFTs (non-fungible tokens), but nearly 7 in 10 of those “in-the-know” are also very aware of the security risks that result from NFTs. The study finds that the rising awareness of NFT security risks may be why only 1 in 4 Americans have bought, sold or invested in them.
“NFTs have quickly become the digital format for owning the modern day collectible,” said Daniel Markuson, digital security expert with NordVPN. “Now, despite being a well known investment risk, the security volatility regarding NFTs figures continues to escalate, as recently seen with the $200M OpenSea NFT heist via a phishing email hack. “
Awareness Around NFT Issues
According to respondents from the survey of 1,002 U.S. consumers, 47% of Americans say they have some knowledge of NFTs (27% don’t know and don’t care). Half of those familiar with NFTs have already either bought, sold or invested in NFTs. However, 68% of those familiar with NFTs are also very aware that there are serious security risks associated with NFTS, including that:
- 51% worry that someone can steal their NFT asset, with little chance to recover it
- 49% fear there are chances of counterfeit NFTs being sold on a fake NFT store
- 48% are concerned that people are impersonating a famous NFT artist and selling fake NFTs
- 48% are aware there are fake NFT stores that sell NFTs that are not even present in the digital world
Private Browsing for NFT
When it comes to security, the survey found that nearly half of those that have bought, sold or invested in NFTs use private browsers when buying and selling NFTs online. Others use popular types of security technology such as password managers (43%), file encryption software (37%), a VPN/virtual private network service (34%) or antivirus software (33%). Only 8% do not use any type of security tech when dealing with NFTs.
“As NFT technology evolves, we’ll surely learn about its potential for even more security risks,” continued Markuson. “But for now, as with every other piece of information that we store online, there should be very similar means of protections used when dealing with NFTs, such as encryption, antivirus and ad-blockers, which NordVPN with Threat Protection can provide.”