10 Easy Ways to Protect Yourself From NFT Scams

0
112
10 Easy Ways to Protect Yourself From NFT Scams
10 Easy Ways to Protect Yourself From NFT Scams

NFTs (non-fungible tokens), which transformed from a specialized technology to a thriving market for digital collectibles in recent years, have contributed to the rapid expansion of the crypto ecosystem by empowering and democratizing the creator economy.

Your crypto and NFT wallets’ security has never been more crucial than it is now. Yes, you’ve undoubtedly heard a hundred times already about the necessity of acquiring a cold wallet and securely saving your credentials. But with more NFT fraud starting to surface, security is only becoming more crucial.

Scams with NFTs either deceive you into thinking you’ve successfully bought or sold a real NFT or they steal the login information for your cryptocurrency wallet.

Due to the high monetary value of these digital assets, many cybercriminals modify their standard hacking techniques, such as phishing and social engineering, to access crypto user accounts and steal NFTs.

Here, we discuss common NFT scams, 10 strategies to defend against NFT scams, and how to stay clear of them as the market for NFTs grows and shrinks.

Common NFT Scams

It should come as no surprise that as NFTs gain public acceptance, so do the scams that surround them. These NFT scams should be known and avoided.

  1. Phishing Emails

Scams including phishing have existed for many years. It happens when a con artist uses email to persuade you to click on a harmful link or give personal information. 

For instance, someone can ask for your seed phrase while pretending to be from the cryptocurrency exchange you use, or they might advise you to open a link that will download malicious software onto your computer. All of your currency or digital assets could be stolen by an attacker.

Phishing sites—replicas of legitimate websites made by scammers—are known to be used to steal data or install malware, leaving you open to a cyber attack. 

Therefore, avoid visiting a URL if it appears suspicious or if the spelling differs significantly from that of an honest organization.

  1. Fake NFT offers 

Scammers targeting NFTs frequently use legitimate-looking trading platforms to send email offers to NFT owners. These phishing emails try to trick you into clicking an embedded link that will lead you to a phony NFT marketplace. 

Once you enter your login information and/or recovery phrase to try to access your account, you run the risk of being a victim. Then, scammers can independently record your information and take your NFTs using keylogging or other software.

  1. NFT giveaways / airdrop scams 

Are NFT freebies legitimate? is a query that many cryptocurrency users have. The short answer is “maybe,” but it’s unlikely. To advertise NFT giveaway schemes, commonly referred to as airdrop frauds, scammers frequently use social media accounts that appear to be legitimate NFT trading platforms. 

Typically, the con artists would guarantee you a free NFT if you share their message and register on their website. 

The caveat is that they record what you enter and can steal your collection of NFTs once they have access to your account once they have you link your cryptocurrency wallet information to claim your prize.

  1. Customer support impersonation 

Hackers will attempt to spoof customer support sites on messaging apps like Discord or Telegram in order to take advantage of the queries that NFT owners have. 

To gain unrestricted access to your bitcoin wallet, NFT scammers set up bogus servers for individuals to connect to and request personal information before “resolving” their issues.

  1. Fake NFT projects (rug pull scams) 

New NFT projects are frequently used by con artists to trick victims into buying fraudulent NFTs, sometimes known as rug pull scams. 

This occurs when a hacker makes an NFT that first appears to be valid but ultimately cannot be sold, so essentially eliminating its worth in the future. The NFT owner then understands they paid a hefty sum of money for an asset that won’t increase as much as they anticipated.

  1. Bidding scams 

Once you try to sell your NFT again, bid scams frequently occur. Once a potential buyer places their highest bid, they can substitute a less valuable cryptocurrency for the one you believe you are using. Thus, you might earn $15 USD rather than 10 ETH (or around $25,000.

  1. Investor scams 

Due to people’s ability to trade bitcoin anonymously, investor frauds are frequent with NFTs. This is frequently used by con artists, who develop schemes that seem to be worthwhile investments before vanishing with the money they have amassed from potential investors. 

This recently occurred when an NFT developer named “Evil Ape” raised approximately $3 million in investors before becoming completely silent.

  1. Pump and dump schemes 

Experienced NFT scammers use “pump and dump” tactics to artificially inflate the price of an NFT, which are inspired by a type of securities fraud. 

They accomplish this by placing a number of bids quickly to give the impression that the NFT is well-liked. They will cash out and sell to the highest bidder as soon as it receives notice and the selling price reaches a level they are comfortable with.

10 Ways to Protect Yourself from NFT Scams

Let’s discuss 10 reliable ways to safeguard your NFT  from scams and probable social media phishing efforts in light of recent thefts of high-profile projects.

  1. Do not use the same password twice.

Your best friends are password storage managers and random password generators. You can ensure the security of all of your accounts, whether they are crypto or not, by using both.

  1. Make Certain you are on a Legitimate Website

False, deceptive NFT websites are widely available online and frequently imitate real websites. Do not follow links in emails or conversations to access real NFT auctions if you plan to participate in bidding. In your browser, type the precise address.

You can find more website listings using a Google search than you can possibly fathom. However, the same Google search will also return some phony websites.

  1. Be Wary of Unsolicited Emails or Offers of Technical Help

If you plan to bid on NFTs, do your research to learn more about the procedure and where to turn if you need reliable guidance.

In their efforts to acquire your trust and get your cryptocurrency, scammers are incredibly cunning. Make it extremely challenging for them to do so.

  1. Be Cautious Discussing your Questions Online

On Discord, many users post questions about technological difficulties. Millions of people use the free Discord software every day to discuss a variety of topics, including technical support for purchasing NFTs on OpenSea.

They then receive an email from someone posing as an OpenSea representative, but they are actually fraudsters. You might have unintentionally given them access to your digital wallet once you have shown them your screen or shared other information with them.

Deals that seem too good to be true usually are scams. If there is a large disparity between the price of the NFT you want to purchase and the recorded prices on OpenSea, be aware that something is fishy.

  1. Be careful with your seed phrase

When you keep a seed phrase digitally, you leave yourself vulnerable to someone gaining access to it through the digital site where it is kept. Don’t do it at all.

The last four characters of your wallet address and at least one other seed phrase should be kept physically in a secure location. In fact, once it is safely kept in those places, your seed phrase ceases to exist in your mind. The bar code needed to set up your mobile MetaMask account is also included.

Never divulge or distribute your wallet’s seed phrase to anybody outside of the actual locations where it is kept. Ever.

Ideally, keep it in several places. Keep these wallet addresses secret as well, especially if you have several wallets.

  1. Do not click random Discord or social media links from unknown source

Verify the source and the sender before opening any downloads from a strange website or clicking any Discord links.

 I actually suggest that you never open a download that originated from a Discord link unless you are absolutely certain of its legitimacy. Don’t open the link or download anything if you can’t completely check the source.

This applies to the cases of CreatureToadz and NBA Top Shot, where phishing announcement posts were made by Discord bots that had never previously posted on the server before these fictitious “exclusive” minting opportunities. Wait a moment and make sure first.

  1. Verify the legitimacy of the Seller

The majority of reputable NFT sellers will have a blue checkmark next to their ID name. If one is absent, make an effort to confirm their identity. 

The verified NFT seller’s profile can be seen on Twitter within a blue hexagonal frame. Or go to and only make purchases from reputable, well-known auction houses.

Verify the contact address, which indicates the location of the NFT’s minting. You should be able to check the veracity of the information supplied at the seller’s listing by searching for the creator’s website.

Go directly to the Help Desk or Service Center of the website listing the NFTs if you need technical support.

  1. Do Not Accept Help from a Friendly Stranger

Use two-factor authentication (2FA) and a very strong password for all transactions, and under no circumstances give out your Seed Phrase (Recovery Phrase) to anyone. Keep in mind that you are guarding your cryptocurrency, so think that everyone you “virtually meet” is out to steal it.

  1. Use a cold storage wallet

For all premium NFTs and cryptocurrencies you want to store for a very long time, utilize a cold storage wallet or a hardware wallet.

Even if you fall for a phishing scam, you may prevent the theft of your high-value assets by using a cold storage wallet like a Ledger or Trezor. The cheapest Ledger costs less than.02 ETH at the current rate of ETH.

  1. Use two-factor authentication 

Use two-factor authentication whenever possible for any account. You can set up two-factor authentication in just a few seconds more, and you’ll be able to sleep better at night knowing that no one can access your account without your phone. For Discord moderators, this step is very crucial.

Bottom Line

Anyone can be duped by phishing schemes, and con artists will only start getting more clever.

A common rule for all NFTs and cryptocurrencies is to be extremely cautious and to always assume the worst if something looks too good to be true. 

A trustless economy was established by blockchain, but every user is now responsible for exercising complete trust in every person and contract they come into contact with.

Before connecting your wallet or confirming any transaction, always conduct your own research, independently verify the legitimacy of contracts and interactions, and take a deep breath.

NFTs will always exist. You might just stay safe online if you use a combination of common sense, a critical mindset, strong passwords, and verification.

Related: https://fxcryptonews.com/how-to-spot-a-pump-and-dump-scheme-in-the-crypto-space/