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Non-fungible tokens: How to avoid NFT Scam?

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Written by   41
4 months ago

One of the trending news last year was NFT's or Non-fungible tokens. NFT is a kind of digital assets belongs to a certain owner that exist on a blockchain or ledger, a bit similar to cryptocurrencies. It is a collectible piece of artwork which is stored in a web. A unique collectible like paintings, audio clips, photos, GIF's and other digital items.

What is the difference of NFT's to Cryptocurrencies?

  • It’s very simple to differentiate the two, NFT's are non-fungible tokens which is interchangeable and every NFT's are different. It means that specific tokens represent a certain information, like for example this token represents ownership of this piece of digital art or this token represent an ownership of a piece of a song. It is secured in a blockchain and can be bought and sold through online marketplaces like OpenSea.

This cryptographic asset successfully hooked the interest of different web enthusiasts around the world reaching a market value of $40 billion.

As this digital asset dominate the online world last year we cannot deny the fact that number of scammers also increases with the aim of deceiving other people and stealing their digital items. As NFT's become valuable many people try to have some digital assets, aside from many scammers are trying to steal some valuable NFT’s. To avoid being deceive we need to create a personal manifesto and know the things around before we engage or make a decision.

How do NFT scams work?

  • People who has the intention to steal something from you will do anything. Don't be trick by sugarcoated words. Scams in NFT work by either stealing your important/personal login credentials or tricking you into believing that you purchased an NFT, in can exist in emails, SMS and etc. So, if ever that a suspicious email pop up in your inbox do not click it right away as it may be a trap to steal your personal information. As of today, many cybercriminals are attracted to do bad things as the value of NFT's continue to grow. They will even jump into hacking methods, such as phishing to enter the account of a crypto user and steal their NFT's. We need to be aware and vigilant always as this people are waiting and observing your weak points for them to get a chance to steal your assets.

What are the common NFT scams?

  • Let’s try to know the common NFT scams and I know some of this scam work in different social media platform. Literally speaking there are lot’s of NFT scam in Facebook and you need be aware especially for the link posted by a random account, most of the victim of this scammers are new or novice in crypto.

1. NFT giveaways/Airdrop Scams

As you can observe in Twitter and Facebook there are lot of pages that offers different giveaways. They will send a specific link to you which is mostly directed into your telegram account. Then after that you will be instructed to provide your login credentials or addresses of your wallets and for that they will get that chance to record want you type and try to access your main wallet and steal your assets. Don't easily trust the different airdrop offers in Facebook as some of them are ways to deceive you. Its easy to know if the person is a scammer, if this user who offers a certain NFT used a dummy account in Facebook then it’s obvious, you don’t need to think twice it’s a scam. Its better to be safe than sorry.

2. Fake Offers

There are different offers that we can see in different social media platform about NFT's, but mostly a sugarcoated offer will be sent via email. Then after that if you believe in that offer and click the link you will be redirected in a fake marketplace and as you use your login credentials, scammers will use the different spyware methods to imitate your login credentials as a result your asset will be steal easily. So, its better to avoid this kind of trick it is common nowadays.

3. Fake NFT websites

This problem is one of the common scams in NFT's. There are lots of skilled cybercriminals roaming online. Some of them are trying to imitate the trusted NFT website to lure and deceive the other people. That's why we need to check and verify first the website that we use before making an action. Try to ask someone who is knowledgeable in that field, it’s better to ask a person that you personally know.

4. Counterfeit or Plagiarized NFT's

If hackers had the ability to imitate a certain NFT website, they also make a counterfeit or fake NFT's. Scammers who plagiarized a certain work will use a minting trick to deceive other people. As a victim you will believe that the NFT's that you purchased is a unique one, but the truth is you are tricked. How can you avoid this? Before you purchase a certain NFT you need to check the authenticity of the NFT by doing a reverse google image search. Aside from that if you observed that the offer is to good to be true then you should really check its authenticity.

5. Customer Support Impersonation

Presence of mind is important, if in your desktop computer or in your laptop you receive a message for urgent computer problem do not click it automatically. Scam tactics may include pop up warning messages that will appear on your screen or call impersonation from a well-known company. Instructions will be sent to you with the aim of stealing your assets and personal information. Some people tried to imitate some customer service to lure you, they will act as a real customer support. Scammer's tends to make fake servers on communication apps like in Discord.

Just be aware of this kind of tricks as we don't know when this people come to us maybe now, tomorrow, next week, next month or next year.

How to avoid this kind of Scams?

  • Always verify the URL of a marketplace that you are using before you make a purchase.

  • Always verify the senders of emails if they are trusted individuals or not. If you feel that they are suspicious do not engage anymore. Trust your instincts. Ignore suspicious emails, SMS and calls.

  • Make a strong password for your online accounts.

  • Always check NFT price, some of the scammers tried to lower the value of certain NFT to deceive other people. It is also important to verify the account of the seller.

  • Never ever share your recovery phrase or seed phrase.

About the Author:

If you enjoy reading this article, try to read this articles maybe you will like it.

(Note: For the photos that I used, it is a self made images from Canva)

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Written by   41
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