Wednesday, March 29, 2023
HomeOpenseaOpenSea is trying to prevent scammers from flipping stolen NFTs

OpenSea is trying to prevent scammers from flipping stolen NFTs

OpenSea has announced that it will begin freezing the sale of suspected stolen NFTs to stop fraudsters and hackers from flipping over illegally obtained tokens.of Wednesday blog postthe company said it was “starting testing a new system” that would mark NFTs involved in questionable transactions as “under review” and block people from buying them using the platform. .

Anne Fauvre-Willis is OpenSea’s Vice President of Operations, Markets and Integrity. To tell Decryption The system will check “multiple industry data sources”, how the NFT was transferred from the owner’s wallet, and what else was going on with the wallet involved at the time of the transfer. When a transaction is flagged as suspicious, the NFT’s previous owner will be alerted via email and will use OpenSea’s existing system to report it as stolen and give them the opportunity to report it to the police. If no reply is received within 7 days, the NFT will be unlocked.

What happens to NFTs flagged in this system?
Image: OpenSea

Previously, OpenSea relied on reporters of stolen NFTs to manually freeze transactions for the item.but given How Fast These Frauds Happen, the company said, in many cases, stolen NFTs were resold before victims could react. The automated system has begun in a “limited pilot phase” and will undergo further training over the next few months.

Of course, what OpenSea can do is limited. Nothing can stop NFTs from flipping in another market that doesn’t have this kind of system. however,( Dramatic drop in sales volume and number of transactions over the past year), it is still the largest NFT market by a large margin. Data from DappRadarso the move should make it more difficult to fence off at least stolen apes. I’m here. Decryption.

Also, freezing future sales doesn’t necessarily mean the NFTs will come back.As Notes for this support document, Once the NFT is removed from the wallet, the game is over.That transaction is written on the blockchain and is highly unlikely to be reversed without the help of a thief. Apple’s Activation Lock Systemit doesn’t do much to help you get your phone back, but it makes it far less tempting to steal it in the first place.

To prevent things from being stolen in the first place, OpenSea is trying to reduce malicious links shared on its platform. Automatically detect them through a list of known malicious sites and through simulated interactions and transactions. This is certainly useful, but as the company points out on its own blog, most of the links to scams are shared off-platform — discord teeth especially they are prevalent.

Still, this is a small step towards improving space security. still fighting fraudHowever, we are not entirely convinced that trust and safety concerns are “some of the biggest barriers to NFT adoption today,” as stated in the OpenSea blog. According to data from , the NFT market is broadly stagnant, with daily sales numbers tending dangerously close to pre-boom levels. Market Tracker.

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