Non-Fungible Tokens (NFTs) and Security Risks
Non-Fungible Tokens (NFTs) have revolutionized the concept of digital ownership, allowing for the trading of distinctive assets via blockchain technology. This innovation spans various domains, including art, music, and virtual real estate, and has become a fundamental element of the Web3 economy. However, the swift pace of NFT development has outstripped existing security protocols, exposing users to advanced scams, technical vulnerabilities, and project failures. As interest and financial stakes in NFTs escalate, the repercussions of security breaches have grown more significant. Consequently, there is an urgent need to thoroughly analyze the spectrum of security threats associated with NFTs and to establish effective defenses against new risks.
New Study on NFT Security
A recent study published on June 25, 2025, in the journal Blockchain: Research and Applications, conducted by researchers from Huazhong University of Science and Technology and Peking University, presents the first systematic analysis of NFT security. By reviewing 248 security reports and 35 academic papers, the research team identified and categorized 176 security incidents related to NFTs. Their findings resulted in a comprehensive reference framework aimed at NFT security, highlighting prevalent vulnerabilities, evaluating detection challenges, and outlining strategies for protecting the Web3 environment.
Three-Tier Security Model
The researchers developed a three-layered security model that encompasses the contract layer, market layer, and auxiliary service layer. Within this structure, they identified 12 primary types of threats, including smart contract vulnerabilities like reentrancy issues and access control failures, market manipulations such as wash trading and rug pulls, and infrastructure threats like phishing and deceptive website interfaces. These insights are rooted in actual incidents, including notorious cases where hackers exploited minting functions or misled users with counterfeit tokens linked to prominent figures.
Detection Tools and Insights
To aid in detection, the team introduced practical tools, including transaction trace analysis for spotting reentrancy loops and symbolic execution for examining logical flaws in minting functions. Alarmingly, they discovered that many real-world incidents, particularly those involving phishing and front-end manipulations, have not been sufficiently examined in academic literature. Their open-source dataset and security classification offer a vital reference point for future research, policy development, and secure coding practices.
Addressing NFT Security Gaps
“Despite the rapid expansion of NFTs, there has been a significant lack of understanding regarding the failure points within these systems,” stated Dr. Haoyu Wang, the study’s senior author. “Our research addresses this knowledge gap by revealing the underlying causes of significant attacks and equipping developers and researchers with the necessary tools to identify and mitigate them. This serves as a rallying cry for both academia and industry to prioritize NFT security.”
Implications for the NFT Ecosystem
This groundbreaking research establishes a foundation for fostering a more secure and resilient NFT landscape. Developers can utilize the proposed framework to proactively tackle common vulnerabilities in smart contracts and marketplaces. Meanwhile, investors and collectors will benefit from enhanced awareness of the indicators that signal potential fraud. Importantly, the study emphasizes the need for greater collaboration between cybersecurity experts and blockchain developers to remain vigilant against evolving threats. As NFTs increasingly intersect with finance, gaming, and identity verification, securing their underlying infrastructure is crucial to nurturing innovation and fostering long-term public confidence.
