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Report spots security risks on NFT platform, OpenSea, but ‘vulnerabilities not exploited’

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Check Point Research (CPR) recently investigated one of the largest NFT marketplaces, OpenSea, for security risks. Amid the rising craze in the sector, the firm discovered “critical security vulnerabilities on the platform.”

The investigation further found that bad actors could exploit the security loophole to the extent of stealing the crypto wallets of users. In this context, OpenSea stated,

“We have been unable to identify any instances where this vulnerability was exploited…”

While it is reported that OpenSea went to deploy a fix in less than one hour of disclosure on September 26, the report is a cause of concern. The NFT space is seeing increased adoption with Coinbase recently entering the segment after players like Binance and FTX.

Coinbase chief Brian Armstrong announced that over 1 million have signed up for Coinbase NFT within one day of the announcement. As Visa also lent its support to the sector with a recent partnership with artist Micah Johnson, it added,

“We’re excited about the future of NFT commerce and what this technology can offer to small and micro business owners in the creator economy.”

Therefore, new players will have to seal the possibility of similar vulnerabilities. CRP had found that hackers can craft “malicious NFTs” and send them to users as “gifts.” As in the case of OpenSea, a user can fall prey by clicking the malicious link and lose access to one’s crypto wallet to the hacker.

Therefore, the research reiterated that users need to be careful before authenticating any wallet access requests on third-party platforms. Meanwhile, OpenSea explained that it is “coordinating directly with third-party wallets” that integrate their platform. It also includes helping ‘”users better identify malicious signature requests, scams and phishing attacks with greater efficacy.”

Oded Vanunu, Head of Products Vulnerabilities Research at Check Point Software stated,

“Blockchain innovation is fast-underway and NFTs are here to stay. Given the sheer pace of innovation, there is an inherent challenge in securely integrating software applications and crypto markets.”

As per BrokerChooser research, Canada is seeing peak interest in the sector with most Google searches per head in 2021. In terms of the most traded NFTs, CryptoPunks has garnered the highest interest from investors.

Source: BrokerChooser

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Shraddha is a full-time journalist at AMBCrypto. She has a keen interest in personal finance and wealth generation. Her primary focus is on the cryptocurrency space's applications for investment vehicles and portfolios