- \n
- Fake NFT websites<\/li>\n
- Pump and dumps \/ rug pulls<\/li>\n
- Fake offers<\/li>\n
- Customer support imposters<\/li>\n
- Plagiarism<\/li>\n
- Airdrop scams \/ giveaways<\/li>\n
- Bidding scams<\/li>\n<\/ul>\n<\/div><\/div>\n
Stick to regulated platforms like eToro<\/a> when you buy Ethereum to purchase NFTs, and read our list of NFT marketplaces<\/a> that have a good reputation.<\/p>\n
Buy Ethereum on eToro<\/strong><\/span><\/a>\n<\/p>
Your capital is at risk<\/em><\/p>\n
Are NFTs Themselves a Scam?<\/h2>\n
NFTs are not a scam; they are just ‘unique cryptographic tokens stored on a blockchain’ that could not be replicated. These cryptographic assets on the blockchain enable your digital work to distinguish from other artworks.<\/p>\n
Any digital object that has been “minted” or placed on the blockchain as a token can become an NFT. They are similar to trading cards, except the card is digital and points to the URL of a JPEG.<\/p>\n
Through these non-fungible tokens, you can tokenize your real-world tangible assets on the blockchain, and sell them to other users for a significant amount. This is why NFTs are not a scam. They are genuine tokens that serve as digital ownership certificates. NFTs have a wide range of applications and can be extremely valuable.<\/p>\n
For investors that truly understand the purpose of NFT technology, NFTs are actually a good investment<\/a>. Unfortunately, NFT scams do occur, as do Bitcoin scams and many types of crypto scams in general. Before committing to purchase any NFT, potential buyers should carefully examine the seller and platform they are using.<\/p>\n
What are the most common NFT Scams<\/h2>\n
Financial prosperity creates opportunities, but it also creates problems. NFT frauds are dangerous and hard to spot, a side effect of the exploding interest of people in blockchain and NFTs. Below are the most common NFT scams faced by the NFT buyers and sellers:<\/p>\n
Fake NFT websites<\/h3>\n
The growing NFT market is flooded with many websites and marketplaces catering to the needs of NFT collectors. The presence of multiple websites has made it difficult for users to figure out whether an NFT trading website is real.<\/p>\n
![\"NFT](\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/02\/nft-scams-fake-websites-secure-ssl.png\")
<\/p>\nLegitimate website with padlock symbol by domain name<\/i><\/p>\n
If you are looking for some best NFTs to buy<\/a>, the first step is to figure out where you can buy and sell NFTs. You may encounter various fake NFT trading websites if you go for purchasing or selling from the online medium. It can be difficult to distinguish between genuine and fraudulent websites because they frequently look identical.<\/p>\n
Check the domain is correct and has the padlock symbol to indicate it is a secure HTTPs encrypted domain, with an SSL certificate. Instead of clicking links sent to you by others or in emails, find websites by searching their domain name in Google (although don’t click sponsored results marked ‘ad’). Bookmark sites you visit a lot.<\/p>\n
You could lose money buying NFTs from scam websites as there are no legitimate NFTs offered on them. Also scammers will keep a record of the sensitive information that you have entered while making your purchase. Though a user only needs to furnish his MetaMask wallet address while making any NFT transaction, he may be asked by the website to provide his master key to the Ethereum wallet to hack his wallet and steal all his crypto coins.<\/p>\n
How to avoid making transactions on fake NFT websites?<\/h3>\n
To avoid getting navigated to the fake trading websites, ensure that the NFT’s contact information matches the information on its creator’s website. You can also make use of the online tools line ScamAdviser<\/em> and Trend Micro Check<\/em> to check whether the NFT website is genuine or not.<\/p>\n
It is also advised not to provide any sensitive information on pop-ups on any NFT website. Choosing legitimate NFT trading websites is the simplest way to stay safe. Always select well-known NFT marketplaces like OpenSea, NBA Top Shot, Axie Infinity, Zora for making your NFT purchase or sale.<\/p>\n
NFT pump-and-dump schemes<\/h3>\n
Pump-and-dumps are common scams that have sprung up with the growing interest in cryptocurrency. Pump-and-dumps occur when a group purchases NFTs or currency to increase demand artificially. When they succeed, the scammers sell their assets when prices rise, leaving others with worthless assets.<\/p>\n
Also known as ‘rug pulls’, scammers promote a new NFT project to attract attention and entice investors to participate in the NFT project. The price rises as more people purchase the NFTs.<\/p>\n
As soon as the price rises, the scammers cash out and withdraw their money from circulation, abandoning NFT holders with almost no assets – pulling the rug out from under them. This unethical practice has been seen in many NFT projects.<\/p>\n
The Athletic, for example, claimed that members of SoRare NFTs football teams purchased the NFTs for hiking purposes. The staggering sale of Beeple’s digital work was also called into question.<\/p>\n
How to avoid NFT rug pulls?<\/h3>\n
As a prudent buyer, you must always look at the history and wallet record of the NFT project before you invest in it. You can see the total number of transactions and buyers who have purchased NFT collections on OpenSea and any other NFT marketplace. Similarly, EtherScan displays all transactions on the Ethereum blockchain.<\/p>\n
You can also do some background research on the NFT project by going through the official accounts of the project on various social media platforms. Before you put any money into the project, you must connect with other investors on social media. A good NFT project would have a large number of investors and collectors.<\/p>\n
Fake offers<\/h3>\n
Sometimes, scammers under the name of famous NFT trading platforms will contact you with their fake emails and tell you that someone has made an offer for your digital art. You will be required to click on a link for some more information, and in case you tap on the link, you will be taken to a phishing website.<\/p>\n
The bogus website will request you submit your wallet details and link them with the website. Then, you will be required to provide your seed phrase\/recovery phrase for next steps.<\/p>\n
If you provide your seed phrase, scammers will have access to the sensitive information of your wallet, and they will use them to hack your wallet address and steal your crypto coins from it.<\/p>\n
![\"fake](\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/02\/nft-6888382_1280.png\")
<\/p>\nHow to avoid fake offers?<\/h3>\n
To avoid any fake offer, always check the verification mark provided to the seller. Many genuine NFT selles are supplied with a blue checkmark beside their usernames, and their collection’s properties are also clearly listed.<\/p>\n
Ensure that the artist’s profile has a blue checkmark next to its picture on OpenSea or other NFT marketplaces. In case you are not able to find it, then contact the artist on social media platforms like Twitter or Instagram, or you can directly reach out to him through his website.<\/p>\n
Once you contact the artist, inquire directly with him if the artwork you want to purchase is theirs and if he has the appropriate user profile. As usual, if you are navigated to any website to avail of that offer, it is advised not to provide any sensitive information to the website.<\/p>\n
Fake NFT support<\/h3>\n
Apart from fake NFT offers, scammers also provide fake customer support or technical services to trick NFT users. Scammers generally approach new NFT users under the guise of technical support staff through social media or messaging platforms such as Discord.<\/p>\n
They misrepresent themselves as employees of some well-known NFT marketplaces such as OpenSea and attempt to persuade you to provide the seed phrase\/recovery phrase of your crypto wallet.<\/p>\n
They could request you to share your screen and get your wallet’s credentials from it. Scammers could even provide you with the link to a fake website to get your sensitive information.<\/p>\n
You may also come across some bogus MetaMask security alert emails, claiming that your MetaMask wallet will be suspended due to security concerns. To retrieve your wallet, you must first verify your account by clicking on the link provided in the email.<\/p>\n
The landing site will ask for the seed phrase of your crypto wallet. If you provide your seed phrase, scammers will gain access to your wallet’s sensitive information, which they will use to hack your wallet address and steal your crypto assets.<\/p>\n
How to avoid fake NFT support?<\/h3>\n
If you need technical assistance after purchasing an NFT, you must contact the NFT marketplace’s official customer service. Sharing your wallet credentials even with an authorized staff of the NFT marketplace can land you in big trouble. So you must avoid doing that.<\/p>\n
Also, most NFT projects will not communicate with users directly via Discord or Telegram. So, be careful if you get any messages related to technical support from any member of the project.<\/p>\n
Plagiarized NFTs<\/h3>\n
![\"NFT](\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/02\/NFT-screenshot-fake.jpg\")
<\/p>\n
![\"NFT](\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/02\/NFT-scam.jpg\")
<\/p>\n![\"bidding](\"https:\/\/insidebitcoins.com\/wp-content\/uploads\/2022\/02\/bidding-scams-NFT.jpg\")
<\/p>\n