Consumer interest in non-fungible tokens (NFTs) has exploded in recent months, with worldwide NFT sales surpassing $4 billion at the start of 2022. Nevertheless, this resulted in an upsurge in criminal activity and some of the biggest NFT scams ever conducted.
What is an NFT?
Non-fungible tokens (NFTs) are one-of-a-kind bits of code that are often, though not always, kept on the Ethereum Blockchain, which is open to the public. These bits of code, or smart contracts, in turn, refer to content stored on the internet at a specific address. Art, pictures, photographs, animations, music pieces, video games, memes, and other digital assets are all examples of NFTs.
NFTs enable artists to embed a string of code into their creations, allowing them to distribute these without concern of infringement while simultaneously ensuring that royalties and revenues are directly paid to them by their followers and admirers. However, NFTs are not immune to scams, and NFT frauds began as soon as this emerging innovation became popular.
What are the top NFT scams to watch out for?
NFT frauds are online scams that cost victims a lot of money. They steal one’s Cryptocurrency wallet login details or make people think they freely traded a valid NFT. Numerous cybercriminals have become attracted to the financial worth of these digital products, so they utilize traditional hacking techniques like phishing and social engineering to perform common NFT scams. If you are interested in this type of news, stay with the Antidolos ICO scams alert to the end of this article
Common NFT scams to watch out for
As top NFT marketplaces become more popular, it’s only natural for cybercriminals to take advantage of unsuspecting consumers by using them for NFT frauds. Some of the most common scams are as follows:
Phishing NFT scams
Phishing scams are among the common NFT scams to watch out for. These fraudsters pose as reputable trading platforms. And sending fake NFT offers to collectors through Email and pop-ups that redirect to legitimate-looking login pages for prominent websites.
They conduct phishing NFT scams to persuade users to click on an embedded link that leads to a fake NFT marketplace where they type in their login details or recovery phrase.
After that, they will record this information and steal the NFTs via spyware and malware like keyloggers. Furthermore, if cyber criminals obtain this confidential information, they might empty all of the Crypto assets one has stored in their Crypto wallet.
How to avoid NFT scams like these:
- For making any Cryptocurrency transaction, especially NFT transactions, go directly to trusted marketplaces and websites rather than through Email, pop-ups, or links.
- If you get an email from an NFT trading platform, double-check the sender address.
- You’ll only need the seed or recovery phrase if you want to create a physical backup of your Cryptocurrency wallet or if you want to recover it. Never give out your seed phrase to anyone.
NFT rug pull scams
Cybercriminals sometimes utilize newer projects to persuade consumers to buy counterfeit NFTs. We call them “NFT rug pull scams” and are among the NFT scams to watch out for. NFT rug pull scams are most common whenever the founders are unknown since this helps scammers disappear tactfully and swiftly. When they create a legitimate NFT that the purchaser won’t be able to resell, the value of the NFT is depleted.
How to avoid NFT scams to watch out for:
- Before investing money in any project, conduct a comprehensive web search.
- Research Blockchain explorers and NFT scam monitoring systems that can assist customers in preventing NFT scams like this.
- Call top website scammer check like Antidolos
Using fake marketplaces
Professional NFT fraudsters may try to replicate reputable NFT websites and marketplaces to deceive customers into giving over their account info.
Many seasoned NFT users may struggle to recognize the difference between them due to the degree of precision they employ.
As a result of social engineering NFT scams like these, users might pay massive amounts of money for fake digital artworks that have no real value in the NFT market.
How to avoid scams like these:
- Before entering your login information or making purchases, double-check the URL of the NFT marketplace website you’re visiting.
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Selling plagiarized or counterfeit artworks
You can’t simply mint a piece of artwork and gain intellectual property ownership of it. Minting a piece of artwork won’t turn it into a unique piece of IP. It is a technique used by scammers to make users think they are purchasing a one-of-a-kind NFT. They open an account on top NFT marketplaces and sell copies of art pieces for the winning price. However, as soon as someone else understands it was a fake, the item you purchased will lose its value.
How to avoid NFT scams like these:
- Do your homework before purchasing an NFT to ensure that the artwork you are buying has been offered on a verified account.
- To ascertain the seller’s trustworthiness, look for the blue verification tick next to their social media page.
- If they don’t have a blue verification tick, look for them on their websites or social media. Ask them personally whether the artwork you’re interested in purchasing belongs to them and whether the user profile is theirs.
Airdrop NFT frauds
The answer to the question “is the NFT giveaway legit?” is most likely not. Airdrop scams, or giveaway scams, are also top NFT scams to watch out for. Malicious actors frequently use social media for advertising giveaway campaigns by impersonating actual artworks. They promise if you share their story and sign up on their online platform, they will give you a free NFT. If they obtain your Cryptocurrency wallet information, they can record everything you enter and seize your NFTs whenever they log in.
How to avoid frauds like these:
- Verify the user’s social media profile and make sure the link they have sent you is the URL of the NFT company.
- Use the creator’s website or social media profiles to connect to the Discord server.
Social media and CST impersonation scams
Social media and CST impersonation are recent NFT scams to watch out for. Professional scammers sometimes create fake social profiles to persuade others of their legitimacy so they can trick them into buying counterfeit artworks. Or they impersonate the customer service team behind an NFT project to provide you with false information.
How to protect yourself against them:
- Look for the blue verification tick next to the seller’s social media page to ensure they are who they claim to be.
- If they don’t have a blue verification tick, look for them on their websites or social media.
NFT bidding scams
NFT bidding scams are most common when users want to resell their NFTs. Bidders may swap out the Crypto the owner believes is used for another currency with a lower value once the owner lists their NFTs for sale.
Important points to check first:
- Always confirm the Crypto used for money transfers and never take bids lower than what you consider profitable.
Pump and dump NFT scams
Pump and dump schemes are used by seasoned scammers to intentionally inflate the price of art on the market in the eyes of other users. Scammers achieve this by placing many bids quickly to give the impression that the targeted NFT is highly regarded. Then they sell it for the highest price when it gathers traction and the price hits a level they’re satisfied with.
How to avoid NFT scams like these:
- Look at the transaction history and check the price changes. The pump and dump scheme is a series of bids that make on a single day.
How to avoid NFT scams in general
- Understand how to recognize phishing scams and never open, click on, or download anything from strange or unwanted emails, pop-ups, or messages.
- Use two-factor authentication to access your Crypto and NFT accounts wherever possible.
- Make sure your wallet and other NFT related accounts have secure passwords.
- Instead of utilizing a software wallet, try using a hardware wallet.
- Don’t click on any suspicious links if you’re unsure who sent the NFTs.
- Stick to legitimate sites and avoid the allure of cheap deals and dubious Cryptocurrency platforms.
- Never disclose your seed or recovery phrase or your private keys to anyone. Exposing your seed might jeopardize your NFTs and all other Crypto assets that you store in your wallet.
- Always check NFT scams to watch out for
- Never purchase an NFT if you’re unsure where it has come from. Check to see if the release is from a reputable source.
- Always verify the pricing of the NFT project on an authorized trading platform.
The bottom line about NFT scams to watch out for
We still consider this market as new tech. So it is up to you as an NFT owner to safeguard yourself against common scams every day on the market. Also, try to remember that something that seems too good to be true is not true most of the time. Especially when billions of dollars are at stake. Always use the free help of sites like Antidolos Latest Blockchain News. As well if you have a question or have a request analysis, share it with us in the comments.