Watch-Out for These NFT Scams
There are always people out there that are trying to capitalize on someone else's misfortune so it is ideal to familiarize yourself in the ways you might get exploited. With NFT projects on the rise, it is best to know some of the techniques these scammers are using and be one step ahead of them.
The most obvious scams are Phishing scams and Rug-Pull scams but I think you already know about them and are doing your very best not to fall for them. But I think it is worth discussing the lesser known ones such as:
Fake NFT Stores:
Scammers love to creating online stores that look legit but have a malicious purpose. These fraudsters usually use similar or misspelled name of a well known NFT store and trick people as if it was the real thing (for example, they will create a website called "OpenSee" which can be mistaken for the official OpenSea marketplace). They then can easily trick you in to buying worthless NFTs, steel your credit card information and many more. So you should always be extra careful in writing URL addresses and following external links to online stores.
Giveaway scams:
These are like phishing scams but slightly different. Scammer will prepare a fake NFT giveaways or use a legit project's name as a cover and will approach unsuspecting "winners" in an effort to make them go to fraudulent website, connect their wallets and provide their private keys. So don't trust these messages you get, specially on social medias telling you you're a winner of some NFT giveaways. Furthermore, it is always best to check if the links that are provided to you match with the official NFT project pages.
Bidding Scams:
Lets say you own an NFT and you want to sell it for profits. Usually, you will use an auctioning method to sell for the highest possible price. This is where the scammer take advantage, they will make the highest bid first using a certain crypto and change that crypto to a less worthy one later without you noticing. Imagine a person made an initial bid of 2 BTC and later changed that bid to 2 BNB, you'll end up losing around $40,000 if calculated with the current pricing. So never forget to double check the crypto used as a payment.
Malware Attacks:
NFT marketplaces may be susceptible to malware attacks and users can be exposed to them resulting in loss of sensitive information regarding their wallets and identities. Therefore, it is always recommended to use the latest version of antimalware software and regularly changing your passwords on every platform you use.
Stolen NFTs:
Stolen NFTs are resold to unsuspecting buys which may lead to a complicated situation. Scammer want to get rid of their stolen NFTs quick and cheap so you might think you found a good bargain and acquire it just to end up returning it to the original owner (hoping there wont be any further legal inquiries). The good news is that OpenSea announced today that it will be implementing a software that can Auto-Detect stolen NFTs and I hope more marketplaces will start taking this kind of efforts.
Fake NFTs:
I think we all have encountered fake/copied products in our lives, from fake bags to fake clothes, we have see scammer trying to profit from a well known brands. The NFT market is no different, scammers will copy a well known creator's NFT and try to pass it as an original. Therefore, it is always wise to do your own due diligence before buying any NFT.
Final Thoughts
Scammers are continuously evolving and finding new ways to exploit people so we should always be on the lookout. We should also take extra measures that can minimize these risks such as:
checking for the NFT projects' independent audits
getting information from trusted sources
investigating the authenticity of social media accounts
taking extra steps in securing our wallets
regularly updating our cyber-security software
and most importantly, sharing new methods that scammers might use on our fellow Blockchain enthusiasts.
If I missed any scamming method that should have been on the list, please share it on the comment section!
Disclaimer
I am not a financial advisor. The information found here are for educational purposes and cite my personal opinion.