NFTs create an indelible digital record of your ownership on the blockchain ( the same technology cryptocurrency are stored), owning a digitally tokenized piece of art can also serve as your membership ticket to Discord chat rooms, exclusive online clubs, gaming communities, and interactive experiences. However, NFTs are still new and a little messy. This has created a pretty lucrative avenue for cybercriminals due to the volume of money in the sector and how new it is.In the cryptocurrency economy, Non Fungible Tokens (NFTs) are all a craze where people can make money by trading NFTs. They are digital assets that come in all shapes and sizes including art, image, GIFs, music, video game items, collectables, memes, virtual fashion, and more.
Like any investment or online financial activity, online scams do occur and cost victims lots of money. For example, some NFT marketplaces are phishing sites where scammers create what look like authentic websites say OpenSea to deceive visitors into sharing personal details like their crypto wallet private key.
NFT Scams to Watch Out for
The popularity of NFTs trading has grown substantially over the past few years, with NFTs now going for millions of dollars, for example, The Merge NFT collection which sold for more than $90 million in 2021. But as any marketplace grows, it’s only realistic for scammers and bad actors to use the NFT marketplace to try to take advantage of unknowing buyers, here are some common NFT scams.
Since anyone with knowledge of how NFT works can easily create one, scammers do steal an artist’s work and create a fake NFT art on the NFT marketplace, say OpenSea, where they list counterfeit artwork for sale. Unsuspecting buyers will then make
purchases on an NFT that has no value.
How to Avoid: Before buying any NFT from any marketplace either OpenSea or the official NFT’s website, do your research to make sure the NFT you are buying is from a verified account and it is the real artist in question. Most legitimate NFT sellers will have a blue checkmark beside their usernames just like on social media.
Rug Pull Scams
A rug pull is a scam in which promoters of a project hype it up through social media and online cryptocurrency forums just to drive the price up and take their money after the price has been driven up. As a result, the price of the NFT dramatically falls to zero, which leads to losses for investors in the NFT. Another form of it is when developers of an NFT remove the ability to sell the token as the developers have added code removing this ability.
How to Avoid: The first thing to check is the founder and developers behind the project to see if they are legitimate and trustworthy enough and to check if they have any previous record of Cryptocurrency malpractice. You can also check the developer’s social media profile, to have an incite on the kind of person they are. If they have large followers but low engagement it could be a tell-tale sign. You should use a burner wallet where when you are sceptical about a particular project, this will limit your risk as only the funds committed will be affected in case of malpractice, instead of your whole crypto portfolio.
How to recover funds lost to NFT scam
- Report to the Appropriate Authorities: You should communicate with the appropriate authority about the NFT scam, if you were scammed on a platform like OpenSea, they can trace the wallet you bought the fake NFT from and seize or burn all the digital coins in the wallet. Although this might not directly help you recover your funds but, the scammer won’t be able to use the funds either. If you don’t care about the hacker and you just want your money back, the next segment is for you.
- Contact a hacker: You can hire a hacker to help you get the funds you lost to a particular NFT project. Since the funds lost are in crypto a professional hacker can trace and recover your funds. You can hire our recommended hackers to help you get back your lost or stolen cryptocurrency. At Recoveries Pro, we have seasoned experts that can walk you through your recovery process. In case you have lost funds to NFT fraudsters, contact Recoveries Pro today!