The Real-World Asset (RWA) tokenization market has surged to over $260 billion, up from $5 billion in 2022, as major financial players like BlackRock and Franklin Templeton enter the space. This growth highlights the potential of RWA as a significant sector in blockchain, allowing investments in assets like real estate and bonds through on-chain tokens. However, this expansion comes with increased security risks. Recent reports indicate that RWA protocol attacks have doubled, with $14.6 million lost to vulnerabilities in the first half of 2025 alone. These attacks are shifting from code-based vulnerabilities to operational-level issues, such as private key leaks. Fraudulent projects exploit information asymmetry, creating tokens without real asset backing and manipulating on-chain data, posing significant risks to investors. Investors are advised to conduct thorough due diligence, ensuring compliance and transparency in RWA projects. Key indicators of legitimate projects include verifiable asset ownership, regulatory compliance, and reasonable returns. As the RWA market grows, maintaining robust security measures and regulatory oversight is crucial to protect investors and sustain market integrity.