NFT SCAMS & HOW TO AVOID THEM

With the NFT boom, it’s no surprise that scammers are on the hunt for a payday. The good news is that knowing the most frequent NFT scams can help you stay a step ahead of fraudsters.
NFTs are all the rage these days because they provide a way for artists and content creators to sell their NFT collections for thousands, if not millions of dollars

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The boom has also attracted a deluge of NFT scams.
These scams can make you lose your NFTs or make them worthless in one fell swoop. You may even end up buying NFTs that will disappear before you can turn a profit.

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The difficulty with NFT scams is that they’re continuously evolving.

HOW DO NFT SCAMS WORK ?

Most NFT fraudsters aim to get access to your NFT account. They do this by using a variety of phishing cons to get you to hand over your private wallet key. Once these scammers access your account, they’ll quickly drain it before you even get wind of the scam.

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If scammers can’t get NFT holders’ login details, they’ll create a fake or worthless NFT project and prey upon people’s fear of missing out and the lure of a quick buck to make them invest. Once the NFT gathers steam and investments pour in, the fraudsters vanish with the funds.

5 Most Common NFT Scams to Watch Out For

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▪︎ RUG-PULL SCAMS

A rug-pull refers to a scam where developers hype an NFT but pull out after receiving substantial funds from investors. Then, they shut down the entire project and vanish with the funds as soon as they have enough.
A classic case of an NFT rug-pull scam is the Frosties NFT rug-pull

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▪︎ PHISHING SCAMS
In general, hackers use phishing to access your NFT account details. To do this, they send out fake links, often through email or popular social media channels

▪︎ BIDDING SCAMS

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Bidding scams often happen in the secondary market when you try to sell your NFT. When you put your NFT up for sale, scammers place the highest bid and you’d naturally want to sell it to them

▪︎ PUMP- AND- DUMP SCHEMES

In a pump-and-dump NFT scam, fraudsters artificially inflate the price of an NFT by misrepresentation and spreading misleading information. Once the price goes up, they “dump” the NFT and disappear without a trace, leaving investors with worthless assets.

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▪︎ PLAGIARIZED NFTS

LESS COMMON NFT SCAMS
▪︎ NFT GIVEAWAYS ( AIRDROP SCAMS)
▪︎ INVESTOR SCAMS
▪︎ CUSTOMER SUPPORT IMPERSONATION

How to Avoid NFT Scams

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▪︎ Don’t click on suspicious links. You might end up giving your account details to a fraudster

▪︎ Never share your password or seed phrase. Also, enable two-factor authentication on your account to add an extra layer of protection.

▪︎ Do your research before investing in an NFT. Always verify the NFT seller’s identity and history before making a purchase.

▪︎ Use a virtual private network (VPN) to encrypt and anonymize your NFT traffic

▪︎ Use a cold storage wallet to keep your digital assets offline.

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Thank you for Reading ❤

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