Types Of NFT Scams To Be Aware Of

January 11, 2023 World Blockchain

As NFT gets popular, likewise, the NFT scams below are some NFT scams to look out for:

1.RUG PULL SCAM
When con artists advertise a false NFT or when creators oversell an NFT to attract investors, a rug pull NFT scam occurs. The promises are broken or the project is abandoned entirely once they have received financing or have been paid for the NFT. When it comes to technology, the blockchain is the wild west, which is both an advantage and a problem. The fear of losing out on the next big cryptocurrency or blockchain bubble has made it so that consumers nowadays don’t spend the time researching about the projects and the companies behind them.

2. PHISHING
When John linked his wallet to a malicious website, he became a victim of a phishing scam. Phishing can take the form of misleading emails, advertising, and pop-ups that link to malicious websites where NFTs and bitcoin can be stolen. Private conversations with strangers on social platforms like Discord or Reddit should be avoided completely. For instance, many scammers would tell you that you have won free NFTs and all you’ve to do is send them your email or phone number. That’s how this scam starts.

3. GIVEAWAY SCAM
Watch out for NFT freebies. Sometimes, scammers will utilize social media to advertise NFT giveaways, enticing users to share their NFT or register on their website in return for a free NFT. When it’s time to claim the gift, the con artists will inquire about the victim’s cryptocurrency wallet and hack their account to take NFTs and bitcoin.

4. IMPERSONATION
To get customers to buy bogus NFTs, con artists would set up phony social media accounts and related spam websites. These profiles frequently copy actual artists. False accounts for tech support are made by other criminals. The scammer may send messages requesting account details in an effort to assist the victim before stealing their login information. Tom Brady, Mike Tyson, and Kim Kardashian are among the top celebrities whose likenesses are used for fake NFTs, according to data by the cybersecurity companies.

5. PUMP AND DUMP SCAMS
The pump and dump scam happens when a lot of cryptocurrencies are bought by a team to boost growth and raise prices. When the price rises, the con artist sells the assets and withdraws their money, leaving other investors with huge losses.

6. NFTS THAT ARE FAKE OR PLAGIARIZED
Criminals steal intellectual property and market fake NFTs on legitimate websites. Once the counterfeit NFT has been purchased, victims frequently learn too late that the fake or stolen NFT has no value.

7. AUCTION SCAM
Auction scams occur when a con artist places the highest bid on an NFT, but when it is time to pay, he substitutes a higher coin for a fairly lower coin. Always verify what cryptocurrency the top bidder is paying with before agreeing to sell your NFT. For example, a con artist bids three ETH for an NFT, but when it is time to pay, they swap to a far lower value currency, such as dogecoin.