July 6, 2022
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What are NFTs and How to Best Protect Them?

Technology is changing how people see the importance and use of art. Nowadays, art and collectible markets are digitalized and introduced on the internet. Some platforms and companies even make it possible to stake in NFTs and earn interest in them. As technology continues to evolve, concepts and necessities are also constantly changing. 

NFT

Non-fungible tokens are virtual versions of collectibles. They cannot be traded or exchanged as they have unique properties, making them highly valued. Because they are digital, they can be verified as genuine and cannot be shared among different users. Unlike other traditional cryptocurrencies, NTFs comprise distinct metadata and can only be identified through their digital signature. The digital signature cannot be modified nor replicated to ensure the individuality of the token.

While it may appear complicated to the uninitiated, the rewards have been enormous for many musicians, artists, influencers, and investors who pay top dollar for NFT versions of digital images. For instance, a GIF from Nyan Cat over a decade old fetched $600,000.

To create an NFT, you will need a digital wallet, a small amount of Ethereum, and access to an NFT marketplace. However, digital assets such as cryptos and NFTs are frequently targeted by cybercriminals. Bad actors can do anything to gain access to your exchanges and digital wallets, resulting in significant financial loss. Thus, online identity verification is critical for data and account security, even requiring additional investment.

Fraud Prevention

Real-time fraud prevention is the process of running fraud-detection algorithms in real-time in order to identify fraudulent activity on credit cards and other financial payment systems. It employs real-time data analysis techniques such as forensic analytics and predictive analytics to evaluate the legitimacy of an ongoing transaction. In its simplest form, fraud detection is just outlier detection, identifying whether an event, such as a transaction made using a credit card, falls outside the user’s normal conditions or habits. Thus, real-time fraud detection is just the execution of fraud detection algorithms concurrently with the transaction. While the method is not flawless and a significant number of false positives are caught, this guarantees that fraud is discovered quickly and maybe stopped entirely.

Successful payment fraud prevention solutions need artificial intelligence (AI). Fraud threats are constantly developing and emerging in novel ways for firms that take digital payments. They want a sophisticated solution that will enable them to keep ahead of fraud and minimize revenue losses due to fraudulent transactions while maintaining a positive client experience. Businesses that conduct digital transactions are often exposed to fraud that wreaks havoc on their payment ecosystems. Moreover, fraud is getting more sophisticated, relying on machine learning to carry out fraudulent actions and circumvent security measures. Antiquated fraud detection systems that rely only on rule-based detection and rudimentary supervised machine learning cannot detect contemporary fraud attempts. That is where artificial intelligence comes into play.

Secure them with FIDO2 authentication

FIDO2 passwordless authentication provides a suite of SDKs, APIs, and Plugins that can help protect your account from phishing and SIM Swap attacks. It is adaptable and capable of delivering strong biometric authentication, ideal for crypto digital wallets. Indeed, it includes all necessary anti-fraud tools for mobile identity verification.

FIDO2 is the alliance’s most recent biometric identity security standard, enhancing the architecture of the alliance’s existing protocols. Cybercriminals may access your credentials in a number of ways, but biometric authentication using the FIDO2 implementation significantly complicates such efforts. The FIDO2 standard has had extensive acceptance across mobile, desktop, and server platforms since its launch in 2018.

To give you more information, here is an infographic by LoginID. 

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