5 Common NFT Scams and How to Recognize Them

Since last year, we can no longer ignore NFTs (non-fungible tokens). The digital certificates sometimes yield thousands to millions of euros, so not only investors but also fraudsters smell money. They are taking advantage of the fact that this market is still so new and they can still profit from NFT scams.

Are you interested in NFTs but have no idea how to spot such a scammer? In this article, you will find five examples of NFT scams that are unfortunately common.

Recognizes NFT fraud

When buying non-fungible tokens, you can almost follow this rule of thumb: the sellers are guilty of fraud until proven otherwise (rather than the other way around). No fool, always be vigilant in this market and watch out for the following red flags.

1. Fake NFT websites and marketplaces

This is often a 1-to-1 spoof of an NFT site or marketplace like OpenSea. The fact that they are almost exact copies is also what makes this NFT scam so dangerous. Even if you have visited the original website, you will not immediately recognize that it is a fake version. Are you buying an NFT through such a scam? Then you will receive nothing if you have transferred your money, or you will get one that is worthless at all.

How can you recognize such a fake variant if you want to buy an NFT? Often the URL gives it away. For example, there is a typo in the name. Or the NFTs are selling at a fraction of the price they are worth. If you think a deal is too good to be true, it probably is. Always research the NFT you want to buy and how much it is worth.

2. Fake social media channels

Fraudsters fake not only the website of an NFT project, but also the social media channel. If you are interested in a popular and well-known project, keep an eye on Twitter’s blue tick. But by no means have all projects been verified.

Therefore, always search Google for the social media channel of the creators to check if a Twitter account is active with many more followers. Again, if something seems too good to be true…

3. Giveaway NFT Scam

It might fall a bit under the previous NFT scam, but it’s good to mention this one even more. If you are contacted to win a ‘free NFT’, you probably think it can’t hurt. After all, if the token turns out to be worth nothing, you haven’t invested any money in it.

But here’s the danger: do you click the link and be asked to link your crypto wallet? Then the fraudsters can gain access to your wallet and empty it before your eyes, without you being able to do anything about it.

4. Pump and dumps

You may have heard of “pumps and dumps” when it comes to crypto. People try to make money by manipulating the value of a currency. By hyping the coin on social media, the value shoots up and the people behind the pump and dump can sell the coin at a profit.

The same is happening now as NFT scams. Perhaps the most famous example of this is the project called ‘Evolved Apes’. The anonymous creator of the project walked away with 798 Ether (about $2.7 million) a week after its launch.

5. Counterfeit NFTs

Scammers are really good at faking things. This time we are talking about the NFTs themselves. Thanks to OpenSea’s free tool for creating NFTs, fraudsters can easily steal the works of real artists and place them on the marketplace under a fake account.

As a result, more than 80 percent of the offer on OpenSea appears to be scams or spam. Fortunately, the marketplace is now taking action. This free tool can now only be used fifty times per account. Still, it’s always good to be vigilant and check via social media like Twitter and Discord if you are the real deal or engages in an NFT scam.

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The most common NFT scams and how to spot them

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