Scams are a major problem in the NFT industry. Here’s how to avoid the most common NFT scams.
Fake Discord DMs
Look out for: Direct messages from brands, artists, influencers, or interested buyers.
How to avoid: Never click on links without verifying the sender. Be wary of any message asking you to click a link, or to complete an action to “secure your NFTs”. Discord accounts and servers are compromised often, so be wary of news, announcements or messages that encourage urgent action.
Fake Twitter Personas
Look out for: Fake influencer and brand profiles.
How to avoid: Check the @username of the account. Only use official links, such as those on an official website. Many brands now post a “this is the final tweet” image on X to indicate that any official-looking messages below will be from fake accounts.
Fake NFT Websites
Look out for: Messages or posts that encourage you to click on a link with urgency.
How to avoid: Visit the website directly, using a known and trusted link. Fake tools, services and marketplaces are common – often with a misspelling that’s difficult to notice when rushing.
Fake NFT Emails
Look out for: Emails that encourage urgent action.
How to avoid: Verify the contents of the email. Verify that the sender is authentic. Never click links within emails, even if they are from a trusted source, without knowing that it is 100% safe.
Fake NFT Artists
Look out for: Stolen artwork.
How to avoid: Reverse-image search any NFT art listed. Check that the artist is active, has a track-record, or is vouched-for in the community. Verify any information received, especially if it is based in emotion, or encourages an urgent response.
Fake NFT Airdrops and Giveaways
Look out for: DMs or posts from projects or influencers discussing a free airdrop or giveaway.
How to avoid: Never interact with posts that seem too good to be true, especially from accounts that you would not expect. High-profile influencers have had their accounts compromised to promote such scams. Verify any communications via a second platform. Do not click on any link without knowing that it is safe to do so.
Pump and Dump Scams
Look out for: Social media posts promoting an unknown NFT collection or cryptocurrency. The scam works by driving the public to buy an asset, driving up the price. Once the price has risen, the scammers then sell the assets they hold, causing the price to drop and any buyers to lose their funds.
How to avoid: Check the data of the NFT collection or crypto token. Is a large amount of the supply held by a small number of wallets? Has there been any news that would encourage trading, or is it out of the blue? Are comments from real users? Verify any information via a second platform.
Rug Pull Scams
Look out for: Social media posts promoting an upcoming NFT collection or cryptocurrency. Rug pulls build hype towards the debut of an NFT collection, before abandoning the project once the drop has been held.
How to avoid: Verify the team behind the NFT collection or crypto token. Are their names public? What is their track record? Are their promises too good to be true? Are they honest, open and transparent with the community? Are their communications too focused on financial gains?
Bidding Scams
Look out for: Strange bids or offers in an NFT auction. For example, an auction for a Pudgy Penguin rises to 15 ETH. An offer for 20 USDC is put in – hoping that the seller accepts without checking the currency. A similar scam sees NFT listings taken down and relisted with the decimal moving one place to the right, making the NFT now 10x more expensive.
Avoid by: Verify all aspects of an NFT transaction each time you interact. Don’t be pressured into quick decisions. If in doubt, back out.