5 Common NFT Scams & 9 Safety Tips 2021
WHAT IS AN NFT? NFTs or Non-Fungible tokens are any digital or physical art like Photos, Videos, Music, Games, Visual worlds, etc. that users can use as digital assets.
Here are 5 common NFT scams
#1 — Fake NFT websites
There are no legitimate NFTs on scam sites, so if you purchase one, you are just throwing your money away. What’s worse, scammers can record all the credentials you submit on the sites. Normally you only have to provide your MetaMask wallet address to make transactions, but scammers may request for the seed phrase of your Ethereum wallet (the master key to your cryptocurrency wallet) and use it to hack into your wallet and steal all your cryptocurrency.
#2 — Fake offers
#3 — Fake technical support
Can be sent via Discord or Email.
#4 — Fake giveaways
Posing as employees from famous NFT trading platforms, saying they are holding giveaway campaigns. They promise you free NFTs as long as you spread the giveaway messages and sign up for the campaigns — through scam/phishing NFT websites! When you try to link your MetaMask wallet, your credentials will be stolen.
#5 — Fake NFT projects (rug pull scams)
Many new NFT projects appear every day, after the NFT price reached its peak, it turned out to be a “rug pull” scam — the tokens can’t be circulated. Owners can’t re-sell the tokens, making their prices plummet in a short time. In such schemes, the only ones who profit are the creators of the digital tokens.
Read the full article and learn the 9 tips to protect yourself from NFT scams.
Stay safe this holiday shopping season and check these helpful links.