Nowadays, many people are familiar with blockchain technology and its ability to secure and distribute digital assets. But what are NFTs? NFTs are a new type of digital asset that represent real-world objects like art, music, in-game items and videos. They are bought and sold online, and are becoming more popular as cryptocurrencies become more mainstream.
Cryptocurrency scams are common, with victims losing millions of dollars. In contrast, NFT scams are relatively rare, but they can also be costly for unsuspecting victims. Here are five tips to help you avoid becoming a NFT scam.
- Use strong passwords for your NFT account and crypto wallet. Don’t use easily guessable information, like your name or birthday. Make sure your passwords are at least 8 characters long and include at least one symbol and one capital letter.
- Don’t share your password with anyone; even if they seem trustworthy. Also, do not share personal information, such as your NFT account passphrase, with anyone. This information should only be accessible to you.
- If you haven’t already, be sure to use a reputable NFT exchange market when acquiring or trading NFTs. There have been numerous scams involving fraudulent exchanges, so using one that is well-known and has a good reputation is the best way to avoid getting scammed.
- Always research the market before making an investment in NFTs. Do your own due diligence and make sure that the market you’re using is legitimate and safe to use.
- Always cross-check the prices of any NFTs you’re considering buying or selling. It’s easy to get scammed when the price of an NFT is too good to be true, and there have been a number of cases where people have lost money to scams involving NFTs.
Common types of NFT fraud
- Rug pull: Scammers advertise a fake NFT project or collection and guarantee investors that they will make money. They hype this asset on social media, but after it is purchased, the promotion and any unfulfilled promises disappear. Due to this, the value of the asset plummets. The scammers also deny other investors the ability to sell this NFT.
- Phishing: Phishing is one of the most common types of NFT fraud. Perpetrators use fake emails or websites to trick users into revealing their personal information, such as their passphrase or wallet passwords. Once attackers have this data, they can use it to steal NFT’S or crypto assets.
- Pump and dump schemes: Pump and dump schemes involve groups of investors who work together to drive up the price of a NFT or cryptocurrency by promoting it to others, then selling off their shares once the price has increased. This can lead to quick profits for those involved but can also cause the value of the cryptocurrency or NFT to crash once everyone has sold off their shares at once.
- Fake Airdrops: Social media charlatans promote NFT giveaways to trick people. The offers typically include obtaining an NFT for referring friends or agreeing to register an account on their webpage. When it is time to claim the prize, the scammers request the individual’s cryptocurrency wallet passphrase or password to transfer the NFT. They instead tap the password and steal the NFTs stored in the person’s wallet.
In conclusion, NFT scams are common these days. If you are a victim, file a case as soon as you can to get your assets back. Be careful of scams and don’t let yourself be lured in by promises of high returns or easy money. Stick to well-known and reputable exchanges and avoid getting caught up in the hype.