Beware of NFT Scams: How to Protect Your NFTs?

“NFT scams and theft are becoming more common – here are steps you can take to protect them”

In the past year, the NFT field has experienced rapid development. While this brings liquidity, opportunity, and enormous growth potential to the space, it also attracts would-be scammers. Due to the decentralized nature of the NFT world, many people are vulnerable, and in many cases, few can counter it.

Scammers are getting more sophisticated, with people tweeting about losing their most precious digital gem every day. Collectors need to be more cautious than ever.

attack target

The NFT space is still experimental – many compare it to the “Wild West”. You can’t report losses to the authorities without comprehensive customer support, but the space still generates billions of dollars in revenue in 2021. This is what makes it the perfect breeding ground for scammers.

“Blue-chip” NFTs are the most targeted, and probably the most frequently attacked is the Bored Ape Yacht Club – one of these NFTs is now around 60 ETH. That means scammers could potentially make hundreds of thousands of dollars with a single click.

Blockchains and NFTs provide autonomy, but it also means we are responsible for our assets – no banks are monitoring them. Knowing about the different types of scams will help keep your NFTs safe.

Types of scams

Often during a highly anticipated NFT launch, many OpenSea pages appear. As FOMO permeated and time passed, many collectors failed to take extra steps to verify the minted provenance of an asset.

Soon, the illegal collectibles were removed from OpenSea along with the NFTs, but the scammers still had the buyer’s money. This happened recently in Punks Comic, where many people were tricked into minting from Opensea pages and lost hundreds of dollars.

1. jpeg

steps to take

  • Never click on unverifiable links.
  • Double-check domain links – a scam site can often be distinguished by a different character.
  • Begin by visiting the official collection Twitter or Discord to confirm that you are minting a verified link.

fake airdrop

Because of the existence of NFTs on the blockchain, your address is public to everyone, and so is your every move. This means that anyone can interact with your account, and they can send NFTs as gifts to your wallet — aka airdrops.

Scammers often send NFTs to your wallet for you to interact with them and learn your personal details, so it’s best not to interact with any new NFTs unless you’ve verified their origin.

impersonate

Recently, a Twitter account caught my eye – it had 5,000 followers, my avatar, my bio, and they shared some of the same tweets as me. The only difference between my account and the fake account is that the username of the fake account contains an extra S – “NFTs1nsight” instead of NFT1nsight. This account could easily deceive people who haven’t seen my real account.

The scam is becoming more common, with some fake accounts adding thousands of followers and appearing more authentic.

steps to take

  • Having a lot of followers doesn’t mean an account is real.
  • Be sure to double-check the Twitter account and the people who follow it.
  • If you confirm this is a fake account, report it to Twitter.

fake link

Scammers will send fake OpenSea messages to people’s emails, asking recipients to click a “view” button. These links usually take you to a fake page asking for your wallet and mnemonic phrase. There are similar scams on Discord. Once scammers get your information, they will transfer all your assets to another wallet and sell them, and there is no way to stop them.

Many scammers will sell NFTs at low prices, and suspicious buyers may just pocket them instead of asking how sellers got them. Sometimes community efforts can help stop this, but not always.

Case Study: Jenkins Imposter

Just recently, the famous NFT collection Jenkins the Valet’s Discord was hacked and they were able to lock down Discord. Hackers impersonate Jenkins and put a fake minting link. Not only was the link nearly identical to the link to the original site, the hacker also created a platform to discuss minting, banning any questioners. Unfortunately, many fell for it and the community was scammed out of dozens of ETH.

The second problem is that Jenkins does not fully own the server. Because of this, he was banned, which would not have been possible if he had the server. Since then, permissions and ownership have been transferred and control has been regained.

The Jenkins team responded with a clear and concise response to the hack, restarting Discord from top to bottom, introducing 24/7 moderation via bots, conducting audits, and compensating everyone who lost ETH in the scam.

Screenshot 2022-02-17 3.45.35 pm.png

Here are more ways to keep your assets safe:

  • Before clicking on links, make sure you’ve verified them – never click on random or broken links sent by unknown sources.
  • Never share your screen.
  • Before minting anything, be sure to check the contract address, which should specify where the NFT will be minted. If it’s verified on OpenSea, it should be legal.
  • Never share your recovery phrase with anyone.
  • Keep your mnemonic phrase away from your phone and computer – store it physically and keep multiple copies in a safe place.
  • Always confirm that you are casting on a verified website.
  • For many, shutting down Discord DMs is easier and safer due to abuse by bots and scammers.
  • Bookmark verified sites like OpenSea – it helps prevent landing fake pages.
  • If you need help, never send you a DM first – turn to the official website for help, not social media.
  • Ask trusted friends, seek answers from the official team, and don’t be afraid to ask questions that prioritize your safety and security.
  • Use two-factor authentication, which is an extra layer of security.
  • Use strong and unique passwords – it’s wise to use a different password each time you create an account.
  • Use a hardware wallet like Ledger or Trezor – these cold wallets are offline, so no one but you can access it with your private key.
  • Before you do anything in the NFT world, be sure to research collectibles, sellers, contracts, links, and more.

Screenshot 2022-02-17 3.46.05 pm.png

Always be vigilant in the NFT space. A brief lapse in judgment could mean the wallet is full or empty.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/beware-of-nft-scams-how-to-protect-your-nfts/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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