Over the weekend, some users of NFT market Nifty Gateway said hackers stole thousands of dollars worth of digital artwork from their accounts. Some people who were hacked also said that their credit cards on the file are used to buy extra NFTs, which also cost thousands of dollars, which are then transferred to a hacker’s account.
Nifty Gateway confirmed in a statement to The edge that some accounts were hacked without two-factor verification and that it was in contact with those affected, but he said he had not yet seen evidence that the platform had been breached. Nifty Giveaway suggests that hackers may have successfully reused credentials leaked from other services.
“We have not seen any indication that the Nifty Gateway platform will be compromised,” the statement said. ‘The Nifty Gateway team is communicating with a small number of users who have apparently been affected by an account takeover. Our analysis is ongoing, but our initial assessment indicates that the impact was limited, that none of the affected accounts enabled 2FA, and that access was gained through valid account evidence. ”
Someone stole my NFTs today @niftygateway and bought $ 10K ++ from today’s drop without my knowledge. NFTs were then transferred to another account.
I encourage EVERYONE to check their accounts ASAP as soon as possible.
Can use everyone’s help here – please RT!
Full
– Michael J. Miraflor (@michaelmiraflor) 14 March 2021
Someone hacked me @niftygateway account tonight and use my credit card linked to the account to buy art worth $ 20k … cool
– Keyboard Monkey (@ KeyboardMonkey3) 15 March 2021
@niftygateway my whole account was just hacked and the person who came in was not even started after changing my password ?! What’s going on in the f ?!
– Lt.Crandog (@LtCrandog) 13 March 2021
Over the past few weeks, many NFTs have become high-value assets; Grimes, for example, sold a series of ten digital artworks for about $ 6 million and digital artist Beeple sold an NFT for $ 69 million at Christie’s. It is unfortunately not entirely surprising that NFT platforms have become targets for hackers who want to steal the digital artwork or take credit card information to buy more.
To prevent future hacks, Nifty Gateway recommends enabling two-factor authentication. “We encourage our users to enable 2FA we offer on the platform and never reuse passwords,” the statement continued. ‘We’ve seen some reports that NFTs involved in these account acquisitions were sold in transactions negotiated under Discord or Twitter. We strongly encourage all Nifty Gateway customers to purchase their NFTs on the official Nifty Gateway market. ”
Due to the blockchain-based nature of NFTs, Nifty Giveaway has no control over an NFT once it is stolen, so it seems unlikely that the affected users will be able to recover their lost collections.