Hackers, catfishers and opportunists are a major problem in the NFT community. Here’s how to avoid the most common NFT scams.
Fake Discord DMs
Watch out for: Direct messages that appear to be from brands, artists, influencers, or interested buyers.
Avoid by: Never click on links without verifying the sender, ideally via a second platform. Be wary of any DM – from friends or strangers – asking you to take immediate action by clicking a link, or to complete an action to “secure your NFTs”. Discord accounts and servers are regularly compromised, so be wary of unexpected announcements or messages that express urgent action.
Fake Twitter Personas
Watch out for: Fake influencer and brand profiles.
Avoid by: Checking the @username of the account you’re interacting with. Only use links from official sources, such as a brand’s website. Many brands now post a “this is the final tweet” image below their posts on X to indicate that any other messages that appear (at first glance) to be from them are from fake accounts.
Fake NFT Websites
Watch out for: Messages or posts that get you to urgently click on a link to visit an NFT website.
Avoid by: Visiting the NFT website directly, using a known or trusted link. Fake versions of popular tools, services and marketplaces are common – often with a misspelling that’s difficult to notice at a glance.
Fake NFT Emails
Watch out for: Emails that compel you into urgent action, especially if they’re unexpected.
Avoid by: Verifying the contents of the email via a second platform. Verify that the sender is from the authentic source. Never click on a link within an email – even if it is from a trusted source – without first knowing that is it safe, and what is on the other side.
Fake NFT Artists
Watch out for: Stolen artwork.
Avoid by: Do a reverse-image search of any NFT art listed. Check if the artist has a track-record, is active on other platforms, or has an active presence in the NFT space. Always verify any information communicated, especially if it is emotive or invokes an urgent response.
Fake NFT Airdrops and Giveaways
Watch out for: Direct messages or social media posts from well-known projects or influencers discussing a free airdrop or giveaway.
Avoid by: Do not interact with any post that mentions a free airdrop or giveaway, especially if it originates from an account you would not expect. Recently, high-profile mainstream influencers and personalities have had their online profiles compromised to promote such scams. If in doubt, verify via a second platform. Do not be pressured into clicking on any link without knowing it is safe to do so.
Pump and Dump Scams
Watch out for: Social media posts promoting an NFT collection or cryptocurrency you’ve never come across before. The scam works by driving unwitting purchasers 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 the unwitting purchasers to lose their funds.
Avoid by: Checking the data of the NFT collection or cryptocurrency. Is a large amount of the supply held by just one, or a small number of wallets? Is there any news that would spurn trading activity, or just vague positivity? Are the comments on the social media posts from real users, or from bots? Always verify with a second party or platform.
Rug Pull Scams
Watch out for: Social media posts promoting a brand-new NFT collection or cryptocurrency. Rug pulls often build hype and excitement towards a big NFT drop by making big promises, conduct the drop, and then run away with the money.
Avoid by: Look into the team behind the NFT collection or cryptocurrency. Are they doxxed? What is their track record? Do their promises seem believable? Are they honest, open and transparent with the community? Are their communications too focused on potential financial gains?
Bidding Scams
Watch out for: Inauthentic bids or offers in an NFT auction. For example, an auction for a Bored Ape rises to 15 ETH. The scammer puts in an offer for 20 USDC – hoping that the seller accepts without checking the currency. A similar scam sees NFT listings taken down and immediately relisted with the decimal moved one place to the right, making the NFT 10x more expensive.
Avoid by: Verify all parts of a potential transaction. Do not be pressured into making quick decisions without checking all of the information involved. If in doubt, back out.