As good as the non-fungible tokens have become in its newest model, there are some associated scams that we must avoid. However, if we don’t know them, how can we even learn to avoid them? Meanwhile, the popularity of NFTs is soaring, which implies many opportunities for investors, digital media designers, developers, and game players.
The popularity of non-fungible tokens that has risen in recent times also has had a positive impact on digital assets to the tune of millions. Moreover, as the digital assets get bigger in value, the digital economy also becomes more extensive. And that is good news for everyone, isn’t it? Part of those people wants to scam others for their hard-earned money. Click here to read more about NFT games.
The primary tool that these scammers use is the ignorance or carelessness of buyers. But then, what are the most everyday NFT scams that have ever been reported, and how can you easily steer clear?
Fake NFT Platforms
One strategy that scammers use is to create a platform that is a close replicate to a robust and famous one. For instance, they may replicate OpenSea.io to deceive potential buyers or investors. Meanwhile, this fake platform will look very identical to the original content and could even for once be taken for the original one without a careful look. The scammer does not mind spending a considerable amount of money to ensure that the components are similar.
The way to avoid this terrible scam is to do thorough research on the particular NFT platform you are interested in. For instance, master the actual domain name and direct link of the NFT marketplace. In addition, beware of some of the cheapest offers that may be too good to be true. For instance, NFTs on scam sites display costly NFTs of hundred of thousands for just a fraction of their actual worth.
For example, ApeGang #4510, a well-known NFT that may cost 10 ETH on the official OpenSea site, should show a value of 1 ETH on a scam site. Scam sites are fond of giving ridiculous prices, and it is one of the easiest ways to avoid them. And if you are not too sure about the actual worth of the NFT, you may think you have found a good deal. Whereas it is only a fake site determined to scam you if you are not careful. Visit http://baseballproshopsonline.com/top-5-free-nft-games/ to read about the Top 5 free NFT games.
Social Media Impersonation
Another way that scammers deceive potential buyers is by showing an image close to the authentic image you expect using a fake name. For instance, when looking for the Larve Labs Twitter page, you find an account relative to the original handle but now has a fake alias. In this case, the scammer copied the original version and created a fake one close to the original.
When interacting with the fake account owner, you may even be convinced that it is legitimate unless you read in-between the lines. Scammers can also quickly sell off fake NFT artworks for massive profits through thus fake social media accounts. Some of the fake accounts may even claim to be doing a give-away, which these innocent buyers may not realize the dangers it holds.
The first step to avoid this strategy is to check for the verification tick accompanying every verified Twitter account. This blue tick usually follows the username. Although not all original NFT social media pages have, its absence is an excellent way to identify scammers. Also, watch out for icons similar to these ticks. If you find multiple accounts in similar names, be careful. Apart from NFT platforms, watch out for fake artists’ statements to impersonate the owner.
Customer Support Impersonation
The use of customer service impersonation would not have worked as a scamming strategy if it had not been common these days for companies to outsource CS. As a result, if the scammers cannot hack a company’s CS page, they use a fake one to request sensitive information from unknowing buyers. An excellent example is a Discord. CS servers are outsourced instead of a direct line service to the official platform.
An excellent way to detect and avoid this is to turn down any request for sensitive information from you. You should also master how you master the Discord servers rather than doing a regular search on a particular server. Also, you can access your NFT creator’s site through the official site of your NFT creator. If the destination platform is accurate, you have first-hand attendance through a safe and secure server.
When you are the seller of a digital asset, you may be susceptible to an anonymous investor, fake. On the other hand, watch out for such investors who promise to pour out incredible amounts of money into your project. For instance, some people were once told they had won the Evolved Apes NFT artworks in a competition. But the prizes never materialized. In the end, they discovered that the channel was just a giant marketing scheme to raise funds.
An excellent way to avoid this kind of scan is to watch out for Ponzi-like schemes or rug pulls that is pretty unheard of in the industry. Moreover, try to educate your mind about the unavoidable risks involved in receiving sponsorships. Therefore, before making your final investment decision, do good research on the company or developer and the target NFT platform.
Finally, several scams within the evolving NFT industry due to the increasing number of cybercriminals. Moreover, there is hardly any innovation with its own tricks and risks. Therefore a general caution will be to stay vigilant and sensitive about sharing information. Also, you should know how to recognize the scammers’ strategies.