How to Spot NFT Scams?
In as much as NFTs are a good way for investors to earn money, scammers too earn money through the same platform. NFTs are becoming more popular, especially NFT art which is selling for millions. As the industry is getting large, scammers also step in to make use of opportunities from unknowing buyers. It is hard to lose hard-earned money in the hope of owning a digital piece of music or art.
The NFT marketplace has several websites and some of these markets do not have the proper brand recognition that is featured in stores like Amazon. The result is that some of these sites are used by scamsters to create duplicates of authentic websites and use them to dupe visitors. The main goal for the scamsters is to get the customers` confidential information e.g. the crypto wallet private key.
So, let’s find out some of the most famous NFT scams and how to avoid them.
Impersonation on Social Media
Scammers copy social media pages from digital online companies and try hard to make them look original. They copy the accounts to resemble the original pages. Scammers use these fake social media accounts to convince customers that they are legit and sell fake NFTs in the process. Some scammers use these pages to showcase fake artworks to earn profits. Unknowing users can also be tempted by fake giveaways offered by scammers using these accounts.
To avoid these types of social media accounts, it is advisable to check account verification first. This is shown by the tick that is closer to the username. However, some of the NFT pages do not have the verification tick, so this tip might not work all the time. The other way to check is to do a google search to ensure that there is more information on social media linked to those accounts.
Fake NFT Stores
Scammers create fake NFT stores like OpenSea, and even experienced buyers can get confused when using these sites. Some customers end up spending large sums of money on artwork that is worth nothing. To avoid this type of NFT scam it is important to do thorough research on the NFTs you want to buy before purchase. Check the address of the NFT to know where it was initially minted. A fake store usually shows a fake mint address.
On the scam NFT stores, NFTs will be priced at lower prices as compared to their original prices. Fake NFTs do not have any properties listed below the digital asset.
Impersonation of Customer Support Pages
Unknowing customers are lured by fake NFT customer service pages to present their sensitive information. Most scammers use ‘Discord’ to contact customers so that they can supply their personal information to help with problems they might be facing on the site. To avoid these scammers, you can try to search for the server via the official website of the NFT creators. The other way is to check the number of followers that are following the account, fake accounts will not have a thousand followers.