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These are the most used scams when buying NFTs, so they can be avoided

The NFT’s gained popularity in the space of the technology and the video game when they were presented as a new way to earn money through the virtual world. In 2020, the NFT market grew almost 300% compared to 2019 and now NFT trading transaction volume exceeds $300 million.

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But since not everything is rosy, the purchase of these digital works, as a tangible product, has its advantages and disadvantages, so users who want to access one of the tokens are at risk of possible fraud.

Around the scams and frauds that have been known in recent times there are some examples of artists who have had their works copied without permission and have been sold as NFT. This happened, for example, after the death of the artist Qing Han in 2020, when a scammer assumed his identity and several of his works became available for purchase as NFTs.

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Therefore, in this article, TechMarkup has compiled the most common deception scams so that you can be attentive and also know ways to avoid possible fraud in a future purchase:

Discord Direct Messaging Scams

This platform is very attractive for cyber criminals and there are different forms of deception. Last December, criminals compromised the channel Discord from fractalan NFT gaming marketplace, and scammed 373 users by stealing around USD$150,000 in cryptocurrencies Sunshine of their wallets.

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In fact, scams aimed at stealing access to Discord accounts are quite common.

Fake profiles on social media

both in Twitter as in others social media, users have to learn to live with fake profiles that try to set them up. You have to get used to paying attention to this, since they often copy information from the official profile.

So if you’re not paying attention, it’s going to be impossible to realize thatThe only difference can be just one letter between one profile and another.

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Fake websites posing as official (phishing)

It is very common to create fake websites that are very similar copies of NFT stores, digital wallets, etc.

These fake websites can proliferate through social platforms like Discord, Twitter or even email.

Artists or creators who are imitated

It is best to buy NFTs from artists who are verified or who prove by seniority or activity that They haven’t been involved in anything suspicious.

Tyler Hobbs, the artist behind the generative art collection (Art Blocks) called Trustdenounced the SolBlocks platform for sell imitations of your work made with your code without your permission.

Pump & dumping

It consists of a common scam model in which an individual or group of people acquire a large number of NFTs (although it can be a token or cryptocurrency) to cause an increase in demand and thus increase its value.

rug pull scam

This fraud occurs when those responsible for a project abandon it and they keep the investors’ money.

When the value of the token and the investor symbol reaches a certain point, the fraudsters empty the liquidity pools of a Decentralized Exchange (DEX) causing the value of the crypto asset to plummet and leaving the owners of these assets unable to sell them.

These scams usually arrive camouflaged with excuses such as that there is a defect in the program and it takes, and of course, a long time to correct it.

Sweepstakes, giveaways and bogus offers

Many fake offers and unexpected giveaways related to NFTs and other crypto assets are often promoted through Discord accounts, Twitter and other social platforms. In some cases, these are accounts that have been compromised and their names were changed.

Using these very real-looking fake accounts (some with large followings and posts), criminals impersonate a well-known brand or person and advertise, for example, they are giving away cryptocurrencies.

Measures to avoid online scams when buying NFTs

Always consult the history of direct messages and verify their origin.

Never share the passphrase or password unless you are absolutely sure and it has been verified three times where was clicked.

Try to use a wallet hardware. These types of wallets are very secure and allow you to store funds offline.

– Get a password manager for all wallets and accounts. These types of tools help generate and store complex passwords.

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