Five New NFT Scams To Know

Blockchain, News | April 1, 2021 By:

Bolster, a company that builds AI/ML technology to protect regular citizens from bad actors on the Internet, has released its research on non-fungible token (NFT) scams.

NFTs are super trendy right now as celebrities and others are jumping on the bandwagon. But like all hot trends, fraudsters want a piece of the pie, making NFTs a prime target for scammers as the value of this cryptocurrency climbs. In the research, Bolster outlines five major threats to NFTs that consumers must be wary of, including:

  • Replica Stores: Scammers are spinning up NFT retail websites that look exactly like the original ones (Opensea and Rarible) to try and trick users into either logging in with their credentials or giving away their credit card information.
  • Fake NFT Stores: These are online stores that will try to cash in on the NFT shopper frenzy. They will sell users products that simply do not exist.
  • Counterfeit NFTs or Artist Impersonations: Counterfeit and real-world ‘inspired’ artwork/content will become a problem. Users need to be careful about what they are buying or bidding, as it will be difficult to verify the seller on such online marketplaces.
  • Giveaways/Airdrops: Scammers will target crypto enthusiasts by offering them free crypto/ NFTs/ tokens related to NFT marketplaces. Bolster has identified giveaway scams targeting users of Rarible and their RARI token.
  • Social Media Scams: Most of the crypto community is active on social media sites Discord and Telegram. Scammers can set up groups targeting all the brands in the crypto space, claiming to be the ‘official support or ‘official’ community of the targeted brand.

Click here to read the full research.