NFTs Are On Rise, Also Attracting Scammers - Here Are Security Tips That Will Keep You Safe

NFTs Are On Rise, Also Attracting Scammers – Here Are Security Tips That Will Keep You Safe

Updated: 23 June 2023

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Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

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Non-fungible tokens have exploded in popularity in recent weeks as creators and collectors adopt the new tech to verify ownership and authenticity of digital assets. The NFT market continues to grow, attracting collectors to invest millions of dollars worth of NFTs on various platforms.

In the coming weeks, most non-fungible token projects are anticipated to launch crypto initiatives, while some make huge announcements. These bullish sentiments will also attract more hackers and scammers. Below we will list three quick security tips that will keep you safe:

1. No Stealth Mints

Surprise mint is one of the easiest ways to identify a promoted form of scam or a hack in any project. None of the projects, neither Azuki nor DeGods, y00ts, Captainz, Mutant Ape Yacht Club, Bored Ape Yacht Club, nor any other renowned project, will ever have a surprising mint.

Last month, hackers exploited Yuga Labs CEO “Daniel Alegre” Twitter account to promote a fraudulent surprise mint. The phishing tweet read, “It’s almost time to enter the Otherside. Start your journey at [malicious link] before the portal closes.”

Twitter users immediately responded to the post asking why their wallets had been drained. Some holders even lost Bored Ape Yacht Club NFTs worth nearly $100k (at a minimum). Since blockchain transactions are irreversible, these victims do not have a chance to recover their stolen NFTs or crypto.

2. Triple Check

Even though different projects announce their crypto announcement from various discords, counter-checking information shared on official social media handles is advisable. Many scammers usually make links similar to official links of non-fungible token projects.

Earlier this year, NFT God, a renowned NFT influencer, claimed to have lost thousands of dollars worth of crypto and non-fungible tokens after accidentally downloading malicious software found through a Google Ad.

The NFT influencer was using Google’s search engine to download OBS, an open-source video streaming software. Unfortunately, he failed to triple-check, and instead of clicking the official website link, NFT God accidentally clicked the sponsored advertisement, which seemed similar.

The NFT influencer and investor noticed hours later after hackers posted a series of phishing tweets from his two Twitter accounts. After a thorough investigation, he realized that malware had been downloaded alongside the software he wanted. His reckless mistake made him lose $27,000 in crypto and NFTs.

3. Basic Scam Tactics

Most non-fungible token projects will never use Fomo tactics while launching their NFT initiatives. By light description, Fomo “fear of missing out” is a scam tactic often used to make investors feel they might have missed exciting events that other people are going to. Moreover, a genuine NFT project will never turn off comments and tweets.