OpenSea Launches New Security Features To Protect Users From NFT Scams

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OpenSea, the largest marketplace for non-fungible tokens (NFT), has unveiled a new feature on its platform that will automatically conceal suspicious NFT transfers from being viewed by the users. The initiative is also part of their fight against fraud in the marketplace; it will also help protect users from being scammed and ensure that only legitimate transactions are visible.

According to Finzer, removing these types of items from the platform will improve its overall performance. It will also prevent unsolicited advertisements and fraudulent items that may be found on open blockchains from being seen on OpenSea.

“I want to share my perspective on OpenSea’s efforts to protect against plagiarism, IP infringement, and fraud. We at OpenSea feel a huge responsibility to ensure our users are safe, while also providing the most expansive, inclusive access to the NFT ecosystem possible.” –Devin Finzer, OpenSea CEO

Finzer outlined in a blog post the efforts the marketplace has made – and is making – to address the core Trust and Safety issues on the platform. A key priority of this work is to reduce the threat of theft and scams, for he noted that  “trust, safety, and customer experience are core focus areas for us, starting with transparent user guidelines and policies, laid out in our Terms of Service.” 

According to another blog post from OpenSea, the new feature will automatically hide any suspicious NFT transfers. However, they assured that they will periodically notify users when they receive a transfer that was hidden.

Further, the platform also established a special moderation team that will handle review and moderation of NFTs. Also, OpenSea will also use “critical auto-detection” technologies to address copyright concerns and other fraud vectors.

“Recently, we’ve seen scammers use these transfers to entice people to click links to malicious 3rd party sites. Our latest Trust & Safety release helps prevent this new scam,” Finzer stated.

In February, a phishing attack happened on OpenSea users where the attacker exploited the flexibility of OpenSea’s decentralized exchange protocol (Wyver Protocol) and stole 254 NFTs that cost $1.7 million in a span of three hours. (Read more: Phishing Attack on OpenSea Users Steals $1.7 million in NFTs)

Last September, the marketplace was involved in another fiasco when an employee used insider knowledge to purchase NFTs that were about to be posted to the popular trading site’s homepage. And just this month, the said employee, former OpenSea product manager Nathaniel Chastain was finally charged with wire fraud and money laundering. (Read more: Former OpenSea Exec Charged With NFT Insider Trading)

This article is published on BitPinas: OpenSea Launches New Security Features To Protect Users From NFT Scams

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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Shiela Bertillo

    BitPinas is the leading and most trusted blockchain and cryptocurrency news outlet that covers the Philippine blockchain and crypto scene. We are also writing general and international blockchain topics that are relevant to our audience.