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Wallet Security and Scams Flashcards

7 cards from real NFT practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Wallet Security and Scams flashcards as text

  1. What is a 'seed phrase' (recovery phrase) and what level of access does it grant?

    Answer: A 12-24 word phrase that gives complete control over all assets in a wallet

    A seed phrase is the master key to a wallet; anyone who has it can import the wallet on any device and control all its assets.

  2. How can you verify that an NFT collection listed on a marketplace is authentic and not counterfeit?

    Answer: Check that the smart contract address matches the one published on the official project website

    Scammers create identically named collections with different contract addresses; the only reliable verification is matching the official contract address.

  3. What is 'clipboard hijacking' malware and how does it threaten NFT users?

    Answer: Malware that silently replaces a copied wallet address with the attacker's address

    Clipboard hijackers monitor copy events and swap any detected wallet address with the attacker's, redirecting transfers without the user noticing.

  4. Why should you be cautious of NFT projects that promise guaranteed returns or fixed profit percentages?

    Answer: Guaranteed returns are a hallmark of fraudulent investment schemes, not legitimate art projects

    No NFT project can legally guarantee returns; promises of fixed profits are a classic sign of a Ponzi scheme or securities fraud.

  5. What should you do immediately if you suspect your NFT wallet has been compromised?

    Answer: Transfer remaining assets to a new, secure wallet as quickly as possible

    Moving assets to a fresh wallet with a new seed phrase is the fastest way to prevent further losses once a compromise is suspected.

  6. What is a 'multisig wallet' and how does it improve NFT security?

    Answer: A wallet that requires multiple private key signatures to authorize transactions, reducing single-point-of-failure risk

    Multisig wallets require M-of-N key holders to approve any transaction, so a single compromised key cannot drain the wallet alone.

  7. Which scenario describes a 'counterfeit NFT' scam?

    Answer: Someone minting and selling copies of a popular NFT artwork without the original creator's permission

    Counterfeit NFTs are unauthorized copies of popular artworks minted by scammers who profit from unsuspecting buyers who mistake them for the originals.