Wallet Security and Scams Flashcards

Which type of wallet stores private keys on a device not connected to the internet?

Answer: Cold wallet

Cold wallets (like hardware wallets) keep private keys offline, making them immune to remote hacking attacks.

A scammer sends you an NFT you didn't request. What is the most likely purpose?

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.

What does a 'rug pull' scam involve in the NFT space?

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.

Which security practice best protects your NFT wallet from phishing websites?

Answer: Bookmarking official sites and always navigating via bookmarks

Bookmarking verified official URLs prevents you from accidentally visiting look-alike phishing domains.

What is 'wallet draining' in the context of NFT scams?

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.

You receive a DM on Discord saying your NFT was selected for a 'free mint upgrade.' What should you do?

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.

Why is it risky to sign a 'setApprovalForAll' transaction without fully understanding it?

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.