A digital asset known as an NFT is a representation of a real-world item, such as artwork, music, in-game goods, or films and more. They are regularly purchased and traded online in exchange for cryptocurrencies, and they are typically encoded using the same software as many other cryptos.
NFTs have been around for some years, but they are now becoming well-known since they are a more and more common means to acquire and trade them. A startling $41 billion was spent on the NFT market in 2021, which is almost as much as was spent on the whole world’s fine art market.
With the peaking interest and value of NFTs, users have become a target for scammers and it’s critical that you take full responsibility of your NFTs and keep them secure. You should also pay close attention to the creative actions scammers are taking in obtaining the NFTs of unsuspecting users:
The Rug Pull
The rug-pull scam, also known as “pump and dump”, is a trap where cryptocurrency developers lure early investors with false information about the potential of an emerging NFT project. Pump and dump fraud has a long history on the stock market. When the price of the NFT reaches a certain level, the creators drain the ecosystem of all its funds and vanish.
Hacking Discord Bots
Bots are helpful artificial intelligence programs that Discord’s social messaging platform utilizes to carry out duties like welcome new members, removing troublemakers, and managing discussions. Hackers have recently targeted and taken over the Discord servers of popular Discord communities.
Hackers attempt to take control of the communities’ bots and exploit them to deceive members into clicking harmful links that claim to take them to recently created NFTs with special incentives. The NFTs aren’t real and the messages contain links to phishing sites where customers visit and can be scammed.
NFT Airdrops
In the Airdrop scam, users will receive tokens in their wallets that they more than likely never heard of nor requested; they often end in .io.
There is nothing fundamentally strange about this as unsolicited airdrops are a vital marketing and promotion technique for NFTs that reputable producers often employ for good causes.
However, in the airdrop scams, when consumers seek to collect their NFTs or exchange them for cryptocurrency they are sent to a third-party website. Before they can claim their reward, they are directed to complete a series of security/password recovery phrases. There is where the criminals are able to gain access to the victims wallets.