Common NFT Scams & Safety Tips 2022

Recently, it seems that people are talking about NFTs a lot.

Have you caught on to this trend too?

They’ve overflowed and redefined the art platform to a great extent lately with loads of people getting enthusiastic about them.

But there are other people too who have also been getting super-excited about the potential of scamming the investors with NFT-related scams! And they are SCAMMERS – People who deceive investors on an NFT space leaving them out-of-pocket.

Would you mind if you find out that “You too have been taken over a ride by someone you trusted”?

Definitely!

We all work hard for our money and want to make the most of it by spending it wisely. And if you plan to invest your money in the trendy NFT business, then there’s a great probability of getting scammed out of your hard-earned money by some con artists.

Many dominant leaders dive deep into the NFT marketplace, without realizing that they too can be OUTSMARTED ANYTIME if they are not vigilant enough. Fraudsters are working full-time 24/7, relentlessly coming up with new crooked ways to dupe people and relieve them of their NFTs and crypto.

The NFT scams occur regularly multiple times a day and on several platforms. Since these trading platforms are lurking with impostors who are desperately waiting to take advantage of you. Therefore, the best way to give a wide berth to NFT scams is to get fully educated on the types of scams taking place as there’s no real way that they can get you back your money!

So, now let’s go through those frequent scams to get an alert of them!

Common NFT Scams to Watch-Out for

  1. Fake Marketplaces & Minting Websites: Fraudsters are making false versions of the official NFT marketplaces with a mint function to steal your ETH, or worse, empty your whole wallet!
  2. Pump & Dump Schemes: One of the common scam tactics is the classic pump and dump scheme. It happens when a group buys a large number of NFTs to drive the demand of an asset up. Unsuspecting investors believe that the counterfeit NFTs have some value, so they join the auction and start bidding more. Once the pump increases, scammers dump all their NFTs for a nice profit, leaving buyers with useless assets.
  3. Customer Support Impersonation / Social Engineering:
    The most devastating way people get scammed is by “social engineering”. Scammers want to fool you by pretending to be a support member, project owner, friend, team member, influencer, and more. They trick you into sharing your private information, making you lose your entire MetaMask account, in the end.
  4. Links from Random DMs:This one is the most popular way to scam people. Hackers create impostor sites and then DM you their link so that you’ll be beguiled into interacting with them. And there’s nothing good to expect from such DMs.
    In addition, Phishing scams and suspicious pop-ups are everywhere. So, don’t get surprised to find them in the NFT marketplace. The scam may involve phony advertisements that will ask for the users’ 12-word security seed phrases and private wallet keys.
  5. Fake MetaMask Pop-ups: Mischievous sites use fake MetaMask pop-ups to steal your data and this is one of the most harmful scams you’ll ever encounter.
  6. Fake OpenSea Websites: Fake OpenSea sites want to trick you to purchase a good deal. When you try to purchase, a fake MetaMask pop-up will appear that asks you to “Log in”, or just take your ETH.
  7. Fake Collab.Land DMs: Hackers create fake Collab.Land accounts to DM you so that you’ll be fooled and connect your wallet to their fraud sites.
  8. Fake Wallet Connecting Websites: Connecting your wallet to any fraud website triggers malware that will drain your every important digital asset, take over your account, steal your personal information, and other such horrifying events.
  9. Fake Offers, Giveaways & Prizes: It is one of the most misleading plots. Imposters want to take advantage of your excitement and will try to send you false emails claiming that “someone has sent an offer for your NFT”. Those random emails will drive you to a faux website, and then ask you to connect your wallet or submit your seed phrase, allowing bad actors to hack your pockets.

With NFT scams getting more refined, it has now become a child’s play for anybody to fall prey to them! 

So, how can you avoid such hefty blunders while dealing with NFTs?

Take Notes from Its Ultimate Safety Tips

In this situation, where deceivers are swindling people, the most sensible way to avoid getting duped by such scams is to have a staunch set of fundamentals with best practices.

That is why; I’m sharing here some practical tips from which you can take notes to avoid getting trapped into the nefarious schemes when dealing with NFTs. Check them out!

  1. Choose Legitimate Trading Websites:If you’re fascinated about investing in NFTs, make sure that you choose legitimate platforms. The internet is flooded with countless fake trading sites, that’s why you have to do good research before entering this crazy marketplace. It is the easiest way to stay safe from falling into any trick.Besides, opt for professional NFT platforms, such as Binance and OpenSea.
  2. Look Out For The Pumps & Dumps: Beware of counterfeit NFTs and before bidding on the NFT, check the creator’s Discord or social media account for a verification tick for added credibility. The easiest way to detect any pump and dump scheme is to go through the transaction history of an NFT. Then compare its data to what you know about the NFT creator.
  3. Keep your Private Keys Private:Anyone who asks you for your details, like your seed phrase, in the name of customer support is a scammer. Your seed phrase is only used as a backup method to recover your wallet, and never to log in or authenticate anything. It’ll only be used if you’ve completely lost access to your wallet. And that’s why you should neither store your seed phrase digitally anywhere nor give out your secret phrase, Whatever! Besides, write it down on something physical like a notebook or a diary, etc., and keep that somewhere safe!
  4. Sign up To An Authentic Wallet: When you buy your first NFT, you’ll sign up for a wallet that transacts on the Ethereum blockchain. For this, you can count on MetaMask, the most popular Ethereum wallet for NFT collectors.
  5. Don’t Sign into Fake MetaMask Prompts: Be extremely cautious and to legitimately sign into MetaMask, just close all of your pending requests to be safe, and then sign in on your own accord by simply clicking your browser extension.
  6. Use a Hardware Wallet: If you possess essential digital assets that you wish to keep safe, I suggest you store your NFTs in the most secure wallet that is less likely to be hacked and would rather recommend Ledger and Trezor. These two are the most trustworthy hardware wallets.
  7. Identify Real Collab.Land: Remember to double-check that only the real Collab.com has a verified bot checkmark by their username. To connect your wallet, the real Collab.Land website will take you to roll.collab.land. Moreover, check it’s not a fraudster using the letter “i” instead of “L” in the URL.
  8. Never Fall for Offers, Giveaways & Prizes, Plus Avoid FOMO: When you’re bound to “act fast”, you’re going to be tricked. Scammers will create a sense of emergency – But, remember, you are in your control, and don’t let them mislead you! Keep in mind, if something seems too good to be true, it really is! So, don’t let the Fear Of Missing Out rush you into fake prizes and giveaways.
  9. Always Do Your Research: Overall, it comes down to being aware of what scams are. Research everything yourself, avoid doing anything that makes you uncomfortable, and whenever you find yourself in an uneasy situation get out of there ASAP!

Hence, as an ultimate tip to remain shielded from the outwitted schemes on the NFT house, Only Invest What You Can Afford to Lose. And not even a single dollar more!

Closing Thoughts

Where there is money to be made, fraudsters won’t be far behind. All the hype within the NFT marketplace could make it knackering to discover who’s a reliable creator and who’s a nasty actor – But Only You Can Save Yourself from falling victim to such schemes with the help of the above guidelines.

Furthermore, in this era, where duplicity from fine imposters is frequent, it is best to Keep Everything PRIVATE. And since now you are aware of all the tricksters’ crafting ideas, you have to make sure to Not Share Anything because that One Mistaken Click Could Trap and Dive You Into Hot Waters!

So, Stay Safe! Stay Private!

Author avatar
Ramsha Khanum
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