NFT scams are everywhere, here are “5+1” tricks to teach you how to avoid them

“Until authenticity is unequivocally proven, it’s best to assume that everyone is a liar.” – Crypto experts share their tips for spotting red flags.

Global NFT sales jumped to the $4 billion mark at the start of the new year. At the same time, just like a bloated garbage bag is suddenly opened, some “stench” will also come in the nostrils – there are more and more fraudulent activities in the NFT market, which has also caused heated discussions in the industry. The first week of 2022 saw an all-time high in Google searches for the keyword “NFT scam”, and as enthusiasm for buying NFTs grew, some “guys” who were more tech-savvy than others began to commit scams.

Crypto project developer Georgio Constantinou said:

“As more and more funds flow into the NFT and Metaverse fields, illegals start to try to get ill-gotten gains from ordinary crypto users, and crypto scams are becoming more and more sophisticated, which means that people are in a decentralized ecosystem. Care needs to be taken in the system.”

So, how can we effectively scale risk? Let us teach you a few tricks below.

Step 1: Turn off your Discord private messages

Greek mythology tells a story that the Trojan War was started by the goddess Eris, who left behind a glittering thing—the golden apple now called the “fruit of strife”— At the banquet, the war was provoked.

Today, fake links on Discord — a decentralized online network of chat room servers — are just as enticing and inflammatory as the “golden apples.”

Discord is the most frequently visited place by hackers, and after gaining admin-level access to the Discord server, they post fake minting links in the announcement channel. According to Georgio Constantinou, these announcements often look like those from project organizers, and offer deals that look enticing but also unbelievable — such as, “In order to meet a lot of demand, we will Post 1,000 NFTs.” Having mastered the psychology of people’s demand for scarce NFTs, hackers often deliberately seek out collectibles that are sold out. “Once a series is sold out, in most cases no additional NFTs will be minted,” he said.

Georgio Constantinou pointed out that most projects will put all official links in a single designated channel and will not mint through those “rough websites” – but only on the project’s main website. Not only that, but Georgio Constantinou also recommends that you turn off direct messaging on Discord. If community members run into a problem and helplessly ask for help on the already hacked Discord, they’ll immediately receive about 5 DMs from scammers. Georgio Constantinou reminds:

“The project team will never be the first to DM you, so until authenticity is clearly proven, it’s best to assume everyone is a liar.

Step 2: Be sure to keep your private key safe

A fake Discord link might mint a fake new NFT by defrauding ETH tokens, and the scammer will then run away with the money—and if the scammer gets the victim’s mnemonic (i.e. a series of secret words for accessing encrypted wallets), then bigger problems will arise. Georgio Constantinou says:

“Due to FOMO (fear of missing out) behavior, people are scrambling to mint fake collectibles, not only doing so will cost them their ETH, but also tokens and NFTs. Never give your private key It’s definitely a top priority to tell anyone, and if you do that, you’re giving away your money .”

In addition to Discord, phishing also occurs in Twitter messages and emails. However, compared to the NFT space, people may be more vigilant and will not easily give their social security number to any email sender.

Georgio Constantinou recommends that people buy a hardware wallet—a physical device the size of a USB that plugs into a computer—and recommends the Ledger and Trezor brands, which are much safer than doing it directly online because he feels that having Hardware wallets “You don’t have to enter a mnemonic phrase in the browser, and that protects yourself from harm.” In fact, he himself uses two-factor authentication as much as possible and sets up complex passwords to ensure security.

Although Georgio Constantinou himself has never been deceived, he said that he has heard of hackers posing as platform distributors, targeting the largest NFT market OpenSea and the popular NFT storage digital wallet Metamask. In some cases, he said, “drop sellers” tell victims that they have been randomly selected to receive a surprise airdrop of virtual goods, and instruct those victims to fake login pages and ask them to log in. Georgio Constantinou reminded that people should always go to the official website to download and operate the wallet. If it is operated through a certain application, then be sure to double-check that there is no problem; if it is just browsing, then be sure to see the URL without any problem.

The third trick: be careful about airdrops

The airdrop itself may contain malicious code. RAC is a crypto enthusiast, musician and entrepreneur, and co-founder of Web3 consultancy Six, which he co-founded last year with Georgio Constantinou and Jesse Grushack. A prominent figure in the field, RAC says tokens are being randomly airdropped into his online wallet all the time. “The token’s name is a website, and it’s going to try to get you to visit this website. They want you to think, ‘Hey, I got these free tokens, I’m going to this website and try to sell them,'” he said. Everything is controlled, they make these tokens unsellable, then lock you up to something, and force you to allow them access to your funds, and end up stealing your money.” Anyone can at any time Send tokens to anyone: wallet holders do not need permission to receive emails or accept transfers, just like mailbox owners receive emails. He added: “The best thing to do is choose to ignore it, and that’s what I did.”

But in reality, these airdropped tokens do nothing but confuse you: if someone is creating a project that includes both fake NFT stash and useless tokens, they are likely to airdrop said tokens to opinion leaders wallets, so they can say that opinion leaders hold their tokens, implying their support for their project.

The fourth trick: beware of all kinds of “exit”

For now, fake or immature collectibles have become a big problem. Those scammers would initially set a base series of NFTs as the start of a larger project, promising that the project would unfold over time, possibly including video game components and other merchandise, among other things. However, just before anything was promised, they chose to abandon the project and run away with millions of dollars in funding, known as a “rug pull”. If the only thing these scammers promise victims is that holding these NFTs will unlock additional benefits in the future, then when these innocent victims are deceived, they may not be legally responsible. Georgio Constantinou only endorses the projects of those online centres, because the information contained in these centres is proven and credible. He stated:

“Large collections with huge potential don’t come together at lightning speed, and if a project looks like it was done in a day…and the website looks terrible, then surely There’s a risk, it’s just trying to get cash quickly through that.”

Tip 5: Question everything — and everyone

Ragzy, a visual artist who launched her first NFT collection last year and later became an NFT collector, says she was looking for a “full-fledged team” before getting involved in the field – at In any project, a team of well-known people who publicly identify themselves is very important, and Ragzy believes that an unauthorized team can easily “get away with it, because no one knows who is to be held accountable.”

Ragzy started a TikTok account dedicated to NFT training for Web3 beginners, during which time she noticed an increasing number of fraudsters, clearly a red flag. To solve this problem, Ragzy introduced a set of “golden rules” for studying the background of cryptocurrency projects, which mainly include:

1. What is the reputation of the project party in the NFT field?

2. Do you know if the project party has had other successful projects?

3. Do you know if there are well-known artists in the project?

4. Do you know whether the quality of the artwork itself has passed the test?

Georgio Constantinou agrees with Ragzy and adds:

“Don’t believe, verify, slow down, read the important things three times.

Even if there are some reputable people among the team members on the project website, there is no guarantee that their affiliation will be reliable. Ragzy emphasized that it is also very important to pay attention to who is the investor of the project party. Whether the investor wants to see the long-term healthy development of the NFT project, or is he prepared to “make a fortune and withdraw”.

Ragzy also pointed out that NFT projects must have a clear value, and social media hype is not necessarily a good thing, she said: “The NFT community needs to come together for a common purpose, if the common purpose is to buy NFT speculation High prices and profiteering, it’s not really a community. In fact, you can buy followers on social media, and you can pay to get celebrity support. You will see a lot of celebrities being asked to promote NFTs and also asked to promote other Cryptocurrencies, they don’t actually know what these things are and it’s not their fault because they see it as a sponsored ad. To me, these projects don’t carry any weight. Just because a celebrity supports or creates a project, it doesn’t Means it will survive.”

Last resort: be prepared to lose everything

As a visual artist, Ragzy is concerned about the long-term impact this ebb and flow may have on the NFT market, explaining:

“Many artists are never paid fairly. Artists are often underpaid and sometimes even asked to work for free and told to be grateful. Our work has no value, and many artists remain destitute until they die. NFT That’s changing. NFTs have created an environment for us not only to be compensated fairly, but also to get royalties if our work is resold. That’s why I hate all the scams and rug pulls that have happened Tricks, because I think these actions discredit the entire industry. Originally, NFT was a very innovative and beautiful industry, allowing artists to make full use of their work and ideas, but now it has become a scam and all kinds of negative things The place.”

On the other hand, RAC believes that all bad things will eventually pass, in his eyes, things are cyclical, he does not seem to worry that the NFT market will disappear due to fraud and said:

“There was a time when people were afraid to put their credit cards online. They were like, ‘Oh my god. Never do that! Your money will be stolen. The internet wasn’t always as safe as we thought it was. Place. Whenever a new thing comes along and gets a lot of attention, something bad always happens. I saw this happen in 2017 – when Bitcoin went from $900 to $18,000 and then 2018 In 2019 and the 2019 bear market, some people said that Bitcoin would disappear completely, but then Bitcoin fully recovered in 2020, and I think it seems that the NFT market is going through a similar thing now.”

RAC explained that when entering a relatively unknown area, there is always the “risk” of being cheated, and when entering the crypto ecosystem, one needs to always be aware that this is actually a “form of investment.” All aspects are safe, but there is nothing to stop someone trying to trick you. On the other hand, encryption itself is a completely open system with no protections by design, and it’s in early stages of development, so it’s not really “specialized”, so it can’t be completely reliant on the system…if you Unfamiliar with the crypto industry, then “unfortunately” you are likely to be the target of “evil people” and sometimes even have to suffer from being attacked to some extent.

Jesse Grushack, another Six co-founder, agreed with RAC, concluding:

“The reality is that crypto is an emerging field, and if you don’t understand it, don’t jump in. If you can’t afford to lose, don’t play. Coinbase and other custodians are great for beginners. There’s no such thing as a free lunch — so , if it sounds too good, it might really just sound like it.”

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/u-s-sec-pushes-decision-on-ark-21shares-bitcoin-etf-to-april-3-2/
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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