Everyone seems to be talking about NFTs these days. No doubt, they have recently revolutionized the art market, with a lot of people getting incredibly excited about them. Every other person is investing in or thinking about investing in NFT. This has made many of us wonder if it’s another scam like the Iraqi dinar scam. NFT is legit but scammers have been getting excited about fooling people by launching NFT-related schemes!
NFT is an attractive investment option. In fact, it’s one of the top alternatives to investing in Iraqi Dinar! For those who are planning to invest, it’s best to stay vigilant and watch out for the schemes of the scammers. Hence, we bring you 8 common NFT scams:
1: Fake Websites – NFT Scams
If you want to invest in NFTs, the first step is to determine WHERE to buy and sell. When you search online, you’ll be bombarded with
millions of results. Watch out, many of them are phony NFT trading websites. It might be difficult to tell the difference between a scam website and a legitimate one because they sometimes look very similar.
Let’s break it to you: there are no authentic NFTs available on scam sites, thus purchasing one is a waste of money. Worse, scammers get access to all the credentials you enter on the website. To make transactions, you usually only need to supply your Metalmark wallet address, however, an NFT scammer like an Iraqi dinar scam guru may ask for extra information like your Ethereum wallet’s seed phrase and use it to hack into your wallet and take all of your money.
2: Discord DMs
The more your Discord network grows, the more false invites you are likely to receive. When someone is impersonating a company, an NFT influencer, or an artist, Discord DMs can be very troublesome. Never click on links or DMs from “friends” asking for money, or “announcements” from NFT projects, no matter.
how legitimate they sound. If you get an unusual message from someone you know, verify their handle first to make sure it’s them.
3: Artist Impersonation
Artist impersonation is another big issue plaguing the NFT industry. One such case was that of Pranksy, an anonymous NFT collector who spent US$3 million (in Ethereum) for an NFT thinking that it’s a genuine Banksy artwork.
Scams involving impersonating artists are likely to rise. You must be cautious in your purchases. To ensure the safety of your purchase, make sure the seller you’re buying from and the NFT itself are both verified. Otherwise, like the dinar scam, it’s very easy to become a victim of an NFT scam.
4: Insider Trading
Insider trading is another key issue that NFT traders and collectors are concerned about these days. It refers to the purchase of NFTs before they are made available to the general
public. OpenSea, an NFT platform, revealed that its Head of Product, Nate Chastain, became a victim of an insider trading scam.
While some of the other scams on this list can be avoided with caution, insider trading is not one of them. There are no precedents in the law to deem such behavior criminal. To prevent insider trading, NFT platforms need to implement stronger restrictions. After confessing to the scam, OpenSea has prohibited employees from purchasing or selling NFTs promoted by the company.
We are often in such a hurry when searching for information on the internet that we type the wrong keyword. Hackers and scammers take advantage of these flaws to infiltrate your system. Typosquatting is the term for such an attack.
Typing errors aren’t the only way to trap someone in the typosquatting scam. Another way you could be targeted is by clicking on a URL that looks legitimate but is misspelled.
There is a whole bunch of such phony websites designed to trick a user into downloading malware, while others are designed to steal your personal information by promising you gift cards and money.
To keep away from such attacks, double-check URLs to ensure that you are visiting the official website. Don’t make take any action unless you are sure it’s a legit site.
6: Fake Customer Support
Another trick in the book is to offer fake NFT support just to steal sensitive information from naive NFT owners. Even some dinar gurus these days are offering support related to Iraqi dinar prediction.
Fake support is rather typical on Discord. Scammers may ask you to provide private information to say fix a problem you are facing if you end up contacting one of the bogus support servers.
If you’re concerned, think about how you’re getting to these Discord servers. Rather than simply Googling a server or looking for it on
Discord, try going to the NFT creator’s official website or social media handle. If you can’t reach the server this way, you should check how many followers the creator has and this should give you enough information about their legitimacy.
People often end up falling for a phony giveaway. Scammers pose as representatives from well-known NFT trading platforms and find you on Discord or Telegram.
They falsely claim to host a giveaway and guarantee you free NFTs in exchange for your assistance in spreading their messaging and participation. All they want to do is take information from your wallet. If an offer appears to be too good to be true, it most often is!
8: Pump and Dump
In both crypto and NFTs, the pump and dump scheme is very common. This is when a person,
or more commonly a group of people, buys a significant number of NFTs in order to deceive the market by artificially inflating the demand. When the value rises, the con artists sell all of their assets receives a handsome profit in exchange, leaving everyone else at a loss.
There is a way to identify this scam. Simply check the transaction history. A legitimate project should have a whole list of purchasers, not just a handful who are selling and re-selling. If you feel you’re working on a pump-and-dump project, run away!
It’s a little frightening to consider how many types of NFT scams you may fall for these days. Every other week, cybercriminals become more inventive and come up with new techniques to deceive people whether it’s related to dinar updates, NFT, or any other investment.
However, if you remain cautious and keep an eye on the latest scams that exist and how to spot them, you should be able to really take advantage of NFTs.