NFT Scams

Top NFT Scams & How to Avoid Them

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    NFT Scams

    How common are NFT scams?

    When newcomers start researching or want to enter inside Cryptos/NFTs it’s common to hear from them, “How can I avoid being scammed?”.
    In the beginning, crypto gained the reputation of being the ecosystem of bad things. This is old but now we can still see a big participation of scammers inside the market.
    NFT scams occur on a daily basis multiple times per day and on various platforms. Discord, social media, and other online platforms are lurking with scammers who are waiting to take advantage of you. The best way to avoid NFT scams is to get educated on the types of scams taking place.
    NFT Scams
    As more money flows into the metaverse, so do bad actors hoping to extract value at the expense of everyday crypto users.
    We spend most of our lives working, so we are not predisposed to lose everything trying to earn more, right? Let’s talk about the common scams and how you could avoid them.

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    How to avoid NFT scams

    Never Share your Secret Phrase

    This is the grail to avoid ANY type of crypto scam. Your secret phrase holds all the power over your crypto wallet and the digital assets within. If someone holds your phrase, they could easily transfer all your assets to another wallet leaving you with nothing.
    The only time you should ever need to enter your secret phrase is if you need to import your wallet. This would usually only be required if you have removed the app from your phone or the extension from your computer. If you visit a site that requires you to enter your wallet’s secret phrase, it’s very likely you are on a scam site.

    Avoid Visiting Untrustworthy Websites

    NFT Scams
    If you have a bad spelling, pay a lot of attention, you are likely going to be scammed. In the NFT world it’s very common to see an exact replica of an authentic site with a different URL. These scam sites can be extremely dangerous leaving unsuspecting victims susceptible to a cyber attack.

    DYOR (Do Your Own Research)

    One common scam found in the NFT space is known as a Rug Pull. A rug pull is an exit scam where developers build a bunch of hype around a product/brand and then once the money flows into the project, they pull out the liquidity, leaving consumers with non-valuable NFTs.
    If you are looking at an NFT project and the team is anonymous, I would say that is a red flag. Not all the anon-teams are going to do a rug pull but if their team is completely open and honest about who they are as humans it’s better.
    This way you have someone to complain or ask for progress on the project – It is very unusual for a public figure to steal people’s money.

    Be Aware of Counterfeit NFTs

    Counterfeit NFTs have been purchased by people who thought they were purchasing the real deal. One easy way to check for a replica is to look at the transaction data and check who minted it and when. Then you can compare this data to what you know about the NFT creator and ensure it is indeed authentic.
    These replica NFTs generally look identical to the real thing but keep in mind, it’s all about the metadata and when the token was actually minted on the blockchain. Avoid authenticating an NFT simply by how it looks.
    Before buying an NFT from any marketplace, do your research to make sure the artwork you are buying is from a verified account. Look for the blue check mark next to the artist’s profile picture on OpenSea or other NFT marketplaces. If there is none, find the artist on Twitter or through their website or other social media channels. Ask them directly if the artwork you want to buy is theirs, and if you have the right user profile. Also, see if the artist or NFT project has a Discord channel and ask others in the community.

    Random Discord Messages

    If you ever receive a direct message from someone who claims to be a founder, celebrity or influencer, pay attention. Most C-level staff will never DM you unless you send them a message first or you come to a specific agreement in a public Twitter thread or Discord channel. It’s kind of like when you were young and your parents told you never to give information to a telemarketer who called your house. The same thing applies in the NFT world – if someone DMs you first, don’t click links or reveal any secrets.

    Double Check Offers

    Bidding scams happen mostly in the secondary market after you’ve purchased your NFT and you want to resell it to the highest bidder. Once you list your NFT for sale, bidders might switch up the cryptocurrency used without telling you. Instead of receiving 115 ETH for your NFT, you could get 115 random tokens like happened to this guy.
    NFT Scams

    Discord Hack

    Discord hacks are one of the most common NFT scams out there. They happen when hackers gain administrator-level access to a Discord server and post a fake minting link in the announcements channel. The message will usually look like it’s coming from a project organizer and offer a deal that seems too good to be true.
    Most projects will put all official links in a separate, designated channel and won’t let minting, among other things, happen via “sketchy looking URLs” — just on the project’s primary website.

    Fake Giveaways

    A question posed by many crypto users is: “Are NFT giveaways legit?” The quick answer is potentially, but not likely.
    Scammers often pose as legitimate NFT trading platforms on social media to promote NFT giveaway campaigns — also known as airdrop scams. The scammers will usually promise a free NFT if you spread their message and sign up on their website. The catch is that once they have you link your cryptocurrency wallet credentials to receive your prize, they record what you type and can steal your library of NFTs once they gain access to your account.
    How to avoid this NFT scam: Check the account’s social media page for verification and/or ensure the link sent to you matches the NFT company’s URL.
    NFT Scams

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    NFT Scams

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