NFTs are becoming the most crucial part of most investors as well as it has also become the attention of most scammers and hackers. They tried to break security values daily using new ways and techniques to make the investor fool and gain unauthorized access to their assets. Today we will discuss NFT scams and how to avoid falling victim to these scams, so let’s get started!
What Is NFT Scam
Techniques to attract investors towards fake assets through fake identity, influencer marketing, truly paid partnership, and many other techniques. Scammers have the only purpose to earn max crypto in less time by delivering fake news to investors and unauthorized access to the investor's assets to perform different malicious activities.
Here the most common scams are listed:
- Phishing Scams
- Influencer Marketing or Fake Persona
- Fake Air Drops
- Bidding Scams
- Pump and Dump Schemes
- Gray Sites Storages
- Investor Scams
And many others. Now, we discuss each of them.
Phishing scams aim to get the credential of investors to gain unauthorized access. A real-time of this scam is phony advertisements, which aim to get the seed phrase and password of meta mask users by creating fake links and messages.
Influence Marketing and Fake Persona
Companies hire influencers to market their fake services on social media platforms like Twitter, Facebook, Instagram, YouTube, and many others social media platforms.
Fake Air Drops
Fake airdrop is a type of phishing attack, its only purpose is to get the credentials of users' accounts to gain unauthorized access. It originated as an airdrop and presented itself as an authorized new arrival currency in the market but, it is embedded with malicious links. Once the user clicks on it they would demand to enter their account credentials, you entered the credential your account would be compromised and the funds into it can be stolen.
It usually happens when you resell your NFTs to the high bidder, the buyer may switch the cryptocurrency without informing you when you list the NFTs. Like NFT was bid as 10 ETH but the bidder switched to $10, here you will get the $10 instead of 10 ETH.
Pump and Dump Schemes
This kind of fraud spreads false information and compels you to invest more money in order to reap profits faster. In addition, they seize unknowledgeable investors and abruptly vanish with their money. This is frequently the fastest and safest method for crooks because they carry out all the jobs in secret.
How to Avoid NFT Scams
According to previous NFT scam experiences, they all follow the same pattern. Following routines they engage in:
- New cryptocurrencies are introduced, then abruptly hyped up, gaining more visibility and influence in a short period of time.
- Use influencers or celebrities to promote the brand.
- In the comment sections, on Discord, or other social networking sites, they continuously post messages with the same format.
- Create aggressive marketing campaigns.
- A sharp increase in price on the chart.
- Never click on suspicious links and keep your keys private
- Create strong passwords never use common password patterns they could be broken by brute force and password-guessing attacks
- Never blindly trust any exchange or crypto, always do a strong search before investment.
NFT scams are fake activities done by scammers and hackers to gain unauthorized access to your accounts or attract more investors to the fake services or projects. It aims to earn more crypto in less time and gain unauthorized access to the investor’s account to steal the funds.