NFT Wallet Security and Scams 2 — Questions and Answers
Question 1: Which type of wallet stores private keys on a device not connected to the internet?
- Hot wallet
- Cold wallet (Correct answer)
- Custodial wallet
- Browser wallet
Correct answer: Cold wallet
Cold wallets (like hardware wallets) keep private keys offline, making them immune to remote hacking attacks.
Question 2: A scammer sends you an NFT you didn't request. What is the most likely purpose?
- A genuine gift from an admirer
- An airdrop scam designed to steal funds when you interact with it (Correct answer)
- A marketing promotion from a legitimate project
- A government-issued digital asset
Correct answer: An airdrop scam designed to steal funds when you interact with it
Unsolicited NFT airdrops often contain malicious smart contracts that drain your wallet if you attempt to view, sell, or interact with them.
Question 3: What does a 'rug pull' scam involve in the NFT space?
- Physically destroying NFT artwork
- Developers abandoning a project and taking investor funds after launch (Correct answer)
- Changing an NFT's metadata after purchase
- Flooding a marketplace with counterfeit NFTs
Correct answer: Developers abandoning a project and taking investor funds after launch
A rug pull occurs when NFT project creators disappear with mint proceeds or liquidity, leaving buyers with worthless tokens.
Question 4: Which security practice best protects your NFT wallet from phishing websites?
- Using the same password across all crypto sites
- Bookmarking official sites and always navigating via bookmarks (Correct answer)
- Clicking marketplace links shared in Discord DMs
- Storing your seed phrase in a cloud password manager
Correct answer: Bookmarking official sites and always navigating via bookmarks
Bookmarking verified official URLs prevents you from accidentally visiting look-alike phishing domains.
Question 5: What is 'wallet draining' in the context of NFT scams?
- Running low on ETH for gas fees
- A malicious smart contract that automatically transfers all assets out of your wallet (Correct answer)
- Selling all NFTs below market value
- A technical error that deletes wallet files
Correct answer: A malicious smart contract that automatically transfers all assets out of your wallet
Wallet drainers are malicious contracts that, once approved, can transfer NFTs and tokens from your wallet without further confirmation.
Question 6: You receive a DM on Discord saying your NFT was selected for a 'free mint upgrade.' What should you do?
- Click the provided link immediately to claim it
- Connect your wallet as instructed to receive the upgrade
- Ignore it and report it as a scam (Correct answer)
- Share the link with your friends so they can benefit too
Correct answer: Ignore it and report it as a scam
Unsolicited DMs promising free upgrades or exclusive mints are a classic social engineering tactic to steal wallet access.
Question 7: Why is it risky to sign a 'setApprovalForAll' transaction without fully understanding it?
- It permanently burns all your NFTs
- It grants another address unlimited control over all NFTs in your wallet (Correct answer)
- It transfers ETH to a random address
- It resets your wallet's seed phrase
Correct answer: It grants another address unlimited control over all NFTs in your wallet
setApprovalForAll gives a specified contract or address the ability to transfer every NFT you own, which scammers exploit to drain collections.
NFT Wallet Security and Scams 2
Which type of wallet stores private keys on a device not connected to the internet?