NFT scams are on the rise, so beware. Scammers stole 3 Beanz NFTs from Blur.

adminJanuary 19, 2024

join us telegram A channel to stay up to date on breaking news coverage

The non-fungible token market has started the new year on an optimistic note, attracting traders, institutions and corporations alike. The NFT craze has given rise to all kinds of scams. In this article, we’ll evaluate the five most common NFT scams and how you can protect your digital assets from them.

NFT Scams Are on the Rise This Year 2024

Peckshield, a well-known blockchain security company, confirmed in a blog post on January 18 that fraudsters stole three collections of non-fungible tokens from Blur.io through phishing, including the Beanz #16149, Beanz #12,990 and Beanz #607 NFT collections. I did. attack.

#PeckShieldAlert #phishing NFT #BEANS OFFICIAL #16149, #12990, and #607 were stolen. #fake_phishing187019 In ~ #blur pic.twitter.com/avvYmjbWaF
— PeckShieldAlert (@PeckShieldAlert) January 18, 2024

Launched in late 2022, Blur.io is an Ethereum-based NFT marketplace serving professional traders with innovative trading features, user-centric fee structures, and integrations with various marketplaces. The platform has traded over $5 billion in trading volume since its inception.

Blur allows collectors to sweep NFTs across multiple markets, snipe to reveal information faster than other markets, and manage portfolios with advanced analytics. As the Blur NFT market continues to gain traction, the number of scammers attempting to lure investors has also increased. Below we’ve listed five NFT scams and how investors can avoid them.

1. Phishing scam

Phishing scams are the biggest internet security threat to digital assets. In most phishing scams, scammers trick victims into providing sensitive security information by sending them fake links (phishing links) or emails that direct them to malicious websites.

It is worth noting that cryptocurrency wallets and marketplace accounts are common points of contact between NFT owners and NFT scammers. In this context, collectors should avoid suspicious links and unofficial links from unreliable sources.

2. Pump and dump NFT scam

Pump-and-dump is a scam that involves social media influencers and celebrities creating massive hype about NFT projects. Influencers can use well-crafted social media posts and provocative conversations to enhance the internet presence of new and existing NFT projects.

Unfortunately, after the NFT floor price reached an all-time high, cryptocurrency and NFT influencers sold their stakes and backed out of the project. The hype dies down and values plummet. Investors are rushing to sell NFTs in preparation for reduced liquidity. In most cases, pump and dump scams leave investors with worthless investments. You can avoid this by doing your due diligence on your NFT project before seeding your funds.

3. Rugs trigger NFT scams.

Rug-Pull is a form of fraud where cryptocurrency developers overvalue NFTs but then withdraw after receiving significant funding from investors. These crooked developers often use social media to build trust and fanfare for their NFTs while they wait for investor money to pour in. The entire project will be closed after sufficient funds have been raised. Again, it is a good idea to do your due diligence on the project and developer.

4. Plagiarized NFT

The whole point of NFTs is to create unique digital tokens. Unfortunately, digital media can be copied beyond the unique identity of its creator, and fake prototypes are sold as NFTs. In this case, investors can purchase a collection of fake NFTs instead of the originals. Cryptocurrency traders should verify NFTs before purchasing.

5. Impersonation

Impersonation is a new phishing scam where scammers pose as customer support representatives for NFT marketplaces. In most cases, scammers contact users about account-related issues, usually through social media channels such as Discord, Telegram, or Twitter. In this case, collectors should only interact with the official Discord to avoid giving their account details to scammers.