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ailtrahq · 7 months

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While the crypto sector continues expanding, the lack of regulation and oversight has bred fertile ground for opportunistic scams that have drained billions from unwitting victims. Reviewing the largest crypto cons and frauds of 2022 provides critical lessons for detecting and avoiding such deceptive schemes targeting the crypto community. Fake YouTube Live Streams A common scam proliferating on YouTube involves fraudsters impersonating famous crypto influencers and projects through fake live streams promoted with paid ads. Scammers clone the channel branding and superimpose a video feed promoting an exorbitant Bitcoin or NFT giveaway. To participate, viewers are instructed first to transfer cryptocurrency to a compromised wallet address. The funds are stolen with no payout given. When viewers realize the deception, the scammers have already drained their accounts. Impersonated figures include Vitalik Buterin, Charles Hoskinson, and Michael Saylor. Rug Pulls A rug pull is when crypto developers abandon a project unexpectedly and make off with investor funds. This can occur with coins, NFT collections, and DeFi protocols. Malicious developers build hype and promotion to attract investors and boost token prices. Once sufficient liquidity or assets are locked up, the founders cash out and shut down operations, leaving investors penniless. Top rug pulls in 2022 included the AnubisDAO, which swindled $58 million, and MLM crypto scheme Forsage, which stole $3 billion. The lack of regulation and investor safeguards exacerbates these exit scams. Romance Cryptocurrency Scams Romance scammers build affectionate relationships with targets before exploiting their trust to steal funds. The crypto version uses dating apps and social media to find victims convinced to invest in fake opportunities. Scammers often claim the funds are needed to unlock false crypto investment earnings that will let the pair finally unite. With the victim emotionally invested, scammers persuade them to drain accounts and retirement funds and borrow money until the fabricated relationship and fabricated investment collapse. Romance scams extracted over $1 billion in aggregate losses last year. Fake Crypto Wallets and Exchanges Scores of fake crypto exchanges and wallet apps have emerged designed to steal login credentials and keys. Scammers typically promote these through social media ads and sponsored search results. The apps mimic leading legitimate platforms like MetaMask but are phishing scams to intercept passwords and keys. $3 million was stolen through one such fake app from Google Play in 2022. These cons highlight the need for caution when downloading financial apps by sticking to official sources like app stores. Scrutinizing legitimacy and avoiding ads are prudent. Celebrity Impersonation Scams This long-running scam promotes fake crypto giveaways by celebrities like Elon Musk using promotional posts on social media. The posts promise to double any crypto deposits sent to advertised wallet addresses. Once victims transfer Bitcoin or Ethereum, the funds are stolen without any return payment. Over $2 million was stolen in one Musk impersonation scheme on Twitter in early 2022. Scrutinizing account veracity before engaging and ignoring unsolicited positive endorsement offers remain key to thwarting this scam. How to Protect Yourself From Crypto Scams As cryptocurrency adoption grows, so do nefarious schemes trying to steal user funds through scams and deception. However, following security best practices greatly mitigates the risk of theft. Opt for installing applications only from trusted platforms like Google Play or Apple’s App Store instead of unofficial third-party sources. Exercise caution when encountering social media promotions, as they are frequently vehicles for deceptive deals. Thoroughly vet any new crypto projects by researching key personnel, financials, and code audits before investing funds. Enable multi-factor authentication on accounts and use offline hardware wallets for storage over online exchanges when possible.

Never share wallet keys or account credentials with anyone, as legitimate services will never require this access. If an offer appears suspiciously generous, it likely is. Stay vigilant for subtle fake app interfaces mimicking leading platforms. Bookmark official websites and only navigate them directly rather than clicking promotional links. Seeking trusted expert input when needed provides another layer of protection. Applying consistent skepticism and security diligence makes one a far less lucrative target for crypto scammers. Reporting and Recovering From Crypto Scams Falling victim to cryptocurrency scams can have devastating financial and emotional impacts. If you suspect being defrauded, act quickly to limit damage and seek potential recovery avenues. Contact law enforcement agencies to file detailed fraud reports – the FBI, FTC, and SEC all field crypto scam cases. Provide information like wallet addresses, transaction IDs, dates, and suspect details. Hire professional tracing firms to monitor the stolen funds’ blockchain movements for authorities. Retain legal counsel to explore civil action options against the perpetrators when feasible. Unfortunately, recovering lost crypto is difficult, given the irreversible nature of blockchain transactions. However, proactive notification of exchanges might help secure accounts, and freeze flows before liquidation. Check if the project had smart contract audits – auditors may be liable for due diligence failures. Leverage crypto insurance if you have active policies covering theft. Avoid trusting “recovery services,” which are often follow-on scams. While recouping crypto losses is challenging, prompt action is imperative to avoid further exploitation. Resources for Staying Informed About Crypto Scams With crypto scams proliferating, staying vigilant regarding new fraudulent schemes and threats is crucial. Helpful resources include government and non-profit consumer advisories on the latest cons. The FTC, CFTC, FBI, AARP, and state agencies issue scam alerts. Following their social media feeds flags emerging cons. Subscribe to exchange newsletters warning users of ongoing phishing campaigns. Mainstream media outlets frequently report on large crypto frauds. Reputable crypto publications like CoinDesk and CoinTelegraph often cover scam trends and include warnings from security experts. Checking forums like Reddit can surface discussions of recent suspicious activities. Follow trusted crypto influencers who spread awareness of frauds they uncover. Use scam reporting sites like CryptoScamDB to crowdsource intel on bad actors and blacklisted wallet addresses. Search whether investment offerings have been flagged on scam warning sites before sending funds. Proactively consulting multiple informational sources provides cross-verification to avoid falling prey. Conclusion The lack of investor protection in crypto generates an environment ripe for scammers to construct elaborate cons and Ponzi schemes like these top 2022 examples. Only investing in audited assets, securing accounts meticulously, and avoiding unbelievable offers limit susceptibility. Enhancing oversight and transparency around projects and platforms may help counteract these risks as the sector matures. But investors must remain vigilant against the ever-evolving crypto scam universe.

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trading-critique · 9 months

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How do I avoid scams in the crypto and forex trading industry?

The crypto and forex trading industry has become increasingly popular in recent years. With the rise of cryptocurrencies and the ease of online trading, more and more people are investing in these markets. However, as it becomes more popular, scams also become more prevalent.

It's important to avoid scams in the crypto and forex trading industry because they can have serious consequences. Scams can result in the loss of your investment and can damage your financial future. In addition, scams can erode trust in the industry and make it more difficult for legitimate traders to succeed.

To avoid scams, it's important to choose a reputable broker. You can also look for reviews from trusted sources to help you choose a broker.

In addition, it's important to learn about foreign currency trading and crypto trading strategies. By understanding the basics of trading and learning about different trading strategies, you can make informed decisions about your investments.

If you're looking for a list of top forex brokers or top cryptocurrency exchanges, there are many resources available online. You can also find information about trading signals and other trading strategies to help you succeed in the industry.

Scams in the crypto and forex trading industry

In the crypto and forex trading industry, scams can take many forms. In the forex industry, scams can be perpetrated by unscrupulous brokers, fraudulent investment schemes, or other malicious means. Some common forex trading scams include Ponzi schemes, pyramid schemes, and fake investment opportunities.

In the cryptocurrency industry, scams can take many forms as well. Some common cryptocurrency scams include giveaways, blackmail, rug pulls, romance scams, phishing, extortion emails, fake company alerts, initial coin offerings (ICOs), non-fungible tokens (NFTs), and fake mining apps or networks.

How to identify scams in the crypto and forex trading industry

To identify scams in the crypto and forex trading industry, you should be aware of some common warning signs. For example, if a broker promises guaranteed returns or claims that you can make a lot of money quickly, it's likely a scam. In addition, if a broker is unregulated or registered in offshore jurisdictions with little to no oversight, it's also a red flag.

Another way to identify scams is to look for poorly written white papers or excessive marketing. You should also be wary of anyone asking you to send them cryptocurrency or asking for your private information such as security codes.

It's important to do your research before investing in any crypto or forex trading opportunity. You should learn the basics of trading and understand the risks involved. You should also check the background of the broker and look for reviews from trusted sources.

How to avoid scams in the crypto and forex trading industry

To avoid scams in the crypto and forex trading industry, you should follow some best practices. To begin with, only invest funds that you can afford to lose. You should also do your research and learn the basics of trading before investing.

Another way to avoid scams is to choose a reputable broker. Look for brokers who have a solid reputation in the sector and are governed by trustworthy authorities. You can also look for reviews from trusted sources to help you choose a broker.

It's also important to be aware of common scams and warning signs. It is probably genuine if it looks too good to be true. You should also be wary of anyone asking you to send them cryptocurrency or asking for your private information such as security codes.

Finally, you should always keep your private information secure. Protect your accounts by using two-factor authentication and secure passwords.

Conclusion

In conclusion, scams in the crypto and forex trading industry can take many forms and can be perpetrated by unscrupulous brokers, fraudulent investment schemes, or other malicious means. To avoid scams, you should only invest money that you can afford to lose and do your research before investing. You should also choose a reputable broker that is regulated by reputable authorities and has a good reputation in the industry.

It's also important to be aware of common scams and warning signs such as promises of guaranteed returns or excessive marketing. Finally, you should always keep your private information secure.

If you're looking for a list of top forex and cryptocurrency trading platforms, Trading Critique is a great resource. Trading Critique provides unbiased reviews of the top cryptocurrency exchanges and forex brokers in the industry.

#crypto #crypto trading #trading guide

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cyphershieldtech · 1 year

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How to stay safe from NFT scams

The NFT market went through the roof in 2021, when it grew to around $22 billion and attracted around 280,000 buyers and sellers, along with around 185,000 unique wallets. But as the market has grown, so has the scope of cybercrime, with eye-catching reports of NFT scams, NFT art scams, and NFT gaming. Read on to learn more about NFTs and how to avoid NFT scams.

What is an NFT?

NFT is an acronym for "non-fungible token". In essence, fungible means exchangeable, for example, bitcoins are fungible, since you can exchange one bitcoin for another and, after the operation, you still have something with the same value. An NFT is non-fungible because it is unique and cannot be directly replaced by another NFT. NFTs can be any digital item: photos, videos, audio files, and more. They have generated a lot of excitement because of their potential to use technology in the sale and collection of digital art.

At their core, NFTs are a type of digital asset, and this is where the "token" part comes into play. When you buy an NFT attached to a digital asset, you do not acquire ownership of the asset itself. You may not reproduce or use it commercially. Instead, you take ownership of a record of purchase on the blockchain, which you can keep or sell again to someone else.

How do NFTs work?

NFTs are layered on top of a blockchain (a record of transactions stored on multiple computer systems) and point to a web link, such as an image file. In general, NFTs use the Ethereum blockchain, although other blockchains support them as well.

NFTs are created from digital objects that represent both tangible and intangible items. For example:

Art

gifs and memes

Videos

collectibles

virtual avatars

Music

This is not a complete list. NFTs can be almost anything: In a notorious transaction, Jack Dorsey, the founder of Twitter, sold his first tweet as an NFT for more than $2,900,000 .

NFTs are the digital equivalent of collectibles. Instead of getting a piece of art to display, the buyer receives a digital file. This gives them sole ownership rights, because NFTs can only have one owner at a time. The unique data associated with each NFT allows verification of ownership. It is also possible that the owners or creators store specific information within them, for example, articles may include their signature within the NFT metadata.

To collect NFTs, you need a virtual wallet that can store both cryptocurrency and NFTs. You also need cryptocurrency to make your NFT purchases. There are NFT marketplaces where you can search for NFTs for sale: some of the best known are OpenSea, Rarible, and Foundation. Many people say that NFTs are a way to support digital artists, while others argue that there is a resource cost involved in any transaction on a blockchain. If you are interested in NFTs it is essential to be aware of the risks involved, including NFT scams and fraud.

Types of NFT scams

Both cryptocurrencies and NFTs are relatively unregulated spaces. This means that there is a chance for criminals to exploit legal loopholes and carry out scams. That is why we have seen extensive media coverage on NFT Ponzi Scams, OpenSea Scams, NFT Art Financial Scams and others. The following are some of the more popular NFT scams:

Identity fraud

Third-party marketplaces like OpenSea exist to facilitate NFT transactions and provide security behind every sale. But criminals can set up imitation marketplaces with similar URLs to trick users. The visible component is a virtual component, which can be easily copied, along with information in a text file, which means that these websites can be very similar to legitimate marketplaces.

Rug pulls

A rug pull is a scam in which organizers deliberately promote an asset via social media to drive the price up. Once they have investor money, they stop backing it, resulting in loss of asset value and investor funds. A variation on this scheme occurs when NFT developers remove the ability to sell the token by adding code that prevents this, leaving buyers with an asset that cannot be sold.

Inflate and sell strategies

Pump and dump schemes occur when a group deliberately buys an NFT to artificially increase demand. Believing that the NFT has value, unsuspecting buyers join the auction and bid. Once the supply increases, the scammers make a profit by selling the NFTs, while the buyers are left with worthless assets.

Phishing scams

Before buying an NFT, you need to sign up for a virtual wallet. NFT phishing scams often use fake advertisements to trick victims (for example, on Discord, Telegram, and other public forums) asking them to share their private wallet key, along with their passphrase. 12 words. Or, scammers can impersonate MetaMask and send fake alert emails, advising that your wallet is suspended due to security issues, and asking victims to click a link in the email. to verify your account. NFT phishing scams are designed to get your personal information and empty your digital wallet.

Customer support scams

Similar to phishing scams , hackers pose as blockchain marketplace customer support staff and contact victims via Telegram or Discord. Under the pretense of wanting to solve a problem, scammers send links to fake but official-looking websites to try to obtain personal information and access to cryptocurrency wallets. They may also ask you to share your screen to solve the problem, when in reality they want to see and take a screenshot of your cryptocurrency wallet credentials.

Offer scams

Deal scams occur when investors seek to resell NFTs they purchased on a secondary market. Bidders can exchange your preferred currency for lower value cryptocurrencies without notifying you, once the sale of your NFT is complete. This can result in potential losses for the seller if they don't double check the coin before agreeing to a sale.

Counterfeit NFTs

Scammers can plagiarize an artist's work and post the fake version on an NFT marketplace. Buyers who do not know this can buy a counterfeit NFT that is worthless.

NFT Giveaway Scams or NFT Giveaways

Scammers can pose as genuine NFT trading platforms on social media to promote NFT giveaways. They usually offer a free NFT if you spread the word and sign up on the website. Once you register, you are asked to associate your wallet credentials in order to receive the "reward". Once they have the credentials, they can access your account and steal from you.

investor scams

Due to the anonymity associated with cryptocurrency trading, investor scams are common with NFTs. Scammers take advantage of anonymity by creating projects that appear to be viable investments, then disappearing with the funds they have collected from investors, without a trace.

Examples of NFT Scams

2021: Evolved Apes

An example of NFT rug pull happened in October 2021. A collection of 10,000 "Evolved Apes'' were released on the market. Buyers were supposed to receive a unique copy of each "Ape," made up of items that could take on each other in a vaporwave fighting game, with the prizes being cryptocurrency rewards. NFT's initial offer was to get funding for the game. However, once the developer, known as "Evil Ape", raised 798 Ether (equivalent to around $2,700,000, at the time) he disappeared, leaving investors with nothing more than a worthless .jpeg file.

2021: Fractal

Fractal is a marketplace for NFT game items. In 2021, a group of scammers created and spread a fraudulent NFT giveaway that resulted in users losing over $150,000 worth of cryptocurrency . Buyers expected to receive a limited edition NFT. Instead, they received an unpleasant surprise, discovering that the link sent through the project's official Discord channel was a scam aimed at stealing cryptocurrency. Users who followed the link and associated their cryptocurrency wallets in the hope of receiving an NFT found that their funds had been transferred to the scammer's account.

2022: Frosties

The Frosties NFT scam was an example of a rug pull scam, which led to the theft of at least $1,200,000. The creators of a collection of NFTs, under the Frosties name, absconded with the investor funds. They shut down all channels of communication with members, stunning a community that had grown to nearly 40,000 members and was expecting various awards.

How to avoid NFT scams

investigate

Check the details of all transactions before accepting the conditions. Is the market you are going to use trustworthy and recognized? Can you see the transaction history of the buyer or seller? Read reviews and look at the creators' engagement level to see if they've had transaction-related complaints in the past. If you invest in a project, check that the developers are genuine.

Don't open files from sellers you don't know well

Hackers have created viruses that specifically target cryptocurrency wallets. Avoid clicking on links in unsolicited emails, as they can also lead to fraudulent exchange sites. Never click on links or attachments from unknown sources.

Be careful with giveaways

Although common in the world of NFTs, sweepstakes or "giveaways" can carry security risks. Each NFT is bound by a contract that determines what can be done with it; This means that hackers can attach authorizations to access your wallet, sell your shares, and more. Never accept an NFT from someone you don't know or trust.

Never share the private key or passphrase (seed phrase) of your cryptocurrency wallet with anyone

Keep your private key and seed phrase secure. If someone has that data, they will be able to access your wallet and delete any NFT or cryptocurrency without leaving any traces. Use strong passwords for the cryptocurrency wallet and other NFT accounts. Use two-factor authentication for all NFT accounts, whenever possible.

Check the project creator

Before transferring money, find and verify the contact information of the creator of the NFT you wish to purchase. Check that the project creators are honest and transparent about who they are. If you can't find clear information about the entities behind a project, this is a red flag.

Only trade with official sites

Always go directly to verified cryptocurrency trading websites and avoid using links or pop-ups to enter key wallet information. Resist the lure of so-called bargains, which could lead to questionable blockchain networks.

Avoid visiting untrustworthy sites

It's easy to make spelling mistakes, but sometimes misspelling a URL can end up in the wrong place. In the world of NFTs, scam sites can be very dangerous. Always check the URL to make sure you're on the right site, and avoid doing anything you're not comfortable with. Remember that if it sounds too good to be true, it probably is.

Check the price of the NFT project

Before making any NFT purchase, check the price on an official trading platform, such as OpenSea or others. If the price is lower than on the legitimate trading site, be careful, it could be a scam.

Use burner wallets (disposable wallets)

A burner wallet allows you to limit the number of funds you want to allocate to a given purchase, including cryptocurrencies for transaction fees. This reduces your risk exposure in the event of a scam.

check check marks

Most legitimate NFT sellers have a blue tick next to their usernames on OpenSea or other NFT marketplaces, and the collection properties are clearly listed. Check that the artist you are purchasing from has a verified account and is the legitimate artist. Find the artist on social media channels or through their website. You may want to ask them directly if the art piece you wish to purchase is theirs, and if you have the correct user profile.

Conclusion

Our NFT audit services include a structured audit process where our industry-leading security experts scrutinize your smart contracts. We provide thorough analysis of your NFTs and certify them for the public through a report.

#nftsmartcontractaudit

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recorem · 1 year

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How to prevent NFT Scams?

The NFT industry surged in 2021, reaching a value of roughly $22 billion and drawing in about 185,000 distinct wallets in addition to an estimated 280,000 buyers and dealers.

However, as the market has expanded, cybercrime has also expanded, as seen by eye-catching instances of NFT fraud, NFT art scams, and NFT game scams. Continue reading to find out more about NFTs and how to evade NFT fraud.

Learning to recognize these frauds and then avoiding them at all costs is the best defense against them. We have listed down the most typical NFT frauds, and the way you can avoid them? 🤔

Impersonation

There are third-party markets like OpenSea that help with NFT transactions and offer security for each sale. But to trick users, fraudsters might put up dummy marketplaces with similar URLs. An NFT’s visible component is an easily duplicated image and some unencrypted data, therefore these websites can resemble actual marketplaces quite closely.

Phishing scams

One of the most typical scams is phishing. On a variety of sites and applications, such as Discord, Telegram, WhatsApp, Facebook, and Instagram, this happens when attackers distribute nefarious links. The link frequently directs the victim to a false NFT minting page, which, if signed, enables the con artist to steal money from the victim. There are several variations of this fraud, such as when an NFT project’s official Discord account is hacked, enabling attackers to utilise the channel to spread their malicious “honey pot” link.

Customer Support Impersonation

Scammers frequently use bogus customer care pages for legitimate NFTs to obtain private information from unaware NFT owners. On Discord, where many NFT project communities are housed, this is rather typical. Scammers may ask you for private information, such as your private key or seed phrase, in order to “repair” whatever issue you may be experiencing if you connect to one of these fraudulent customer service servers rather than the real one. If this is a concern for you, think about how you typically access NFT Discord servers. Try finding a server via the NFT creator’s official website or social media first rather than just searching for it on Google or Discord.

Rug pulls

Rug pulls are well-known in the NFT industry. These are frauds in which the project’s originator (or project founders) advertise a venture’s apparent aim without intending to see the objectives achieved. They are frequently referred to by the shorter “rug.” In the end, the fraudsters solicit money — often through NFT mints — and steal it (also known as “rug pulling”) without making any effort to advance the initiative. Find out more about the teams behind NFT projects by looking them up on social media sites like Linkedin and Twitter. The crypto community may even know and trust anonymous artists and engineers, but it is still crucial to carefully examine follower counts and interaction on social media. Check the project’s road map to see if it’s realistic.

The sheer variety of modern scams that you can fall for is a little frightening. Every other week, cybercriminals come up with new schemes to deceive people as they get more and more creative. But if you remain cautious and knowledgeable about the various scams that exist and how to spot them, you’ll undoubtedly keep yourself safe when exploring the fascinating world of NFTs.

We at Recorem also conducted an event around NFTs. You will get to know everything about NFTs just by watching it!

#blockchain #web3 #web3events #decentralized #web3community #web3jobs #defi #event #dapps #career #nftcommunity #nfts #nft crypto

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niftyrevolution · 2 years

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Common NFT Scams & Safety Tips

1. Fake Marketplaces

Find a platform where you can purchase and sell NFTs if you’re considering making your first investment in one

These fraudulent websites don’t offer genuine NFTs, therefore if you purchase one, the website will record your login information from the specifics of your transaction

Additionally, these websites may request your private keys or 12-word security seed phrases and utilize them to empty your virtual wallet of all its contents

Never submit your information in links, pop-ups, or emails in order to avoid these frauds; instead, always pick trustworthy NFT trading platforms, such as Binance NFT marketplace, for cryptocurrency transactions

2. Fake Offers

NFT scammers frequently send you fake emails saying that you have received an offer for your NFT by impersonating trustworthy NFT trading sites

The goal of these phishing emails is to trick you into clicking on an embedded link that will lead you to a fake NFT marketplace

Like many previous phishing scams, clicking the button will take you to a fake page that requests your digital wallet’s link and seed phrase, enabling criminals to access your wallet

Always check and double-check the sender address of any email you receive from an NFT trading platform in order to prevent falling victim to these kinds of scams

3. Fake Giveaways

Scammers will contact you via social media and invite you to participate in their NFT giveaway campaign while posing as employees from well-known NFT trading platforms

If you spread the word about the offer and register for an account on their website — a phishing site — they might guarantee you a free NFT

They will also record what you type, obtain access to your account, and maybe steal your collection of NFTs once they have persuaded you to attach your digital wallet credentials in order to claim your prize

Check out that person’s social media accounts and confirm that the link you’ve obtained from them matches the company’s official domain name to avoid falling for this kind of NFT scam

4. Rug Pull Scams

Rug pull scams occur when an individual or organization releases a preliminary collection of NFTs to launch a larger project that will eventually include a game component, merchandise, or an event

The trick is when they steal the millions of dollars collected before any of the promised activities can be carried out

This occurs frequently and swiftly, but there have also been examples of slow rug pulls, in which the project is gradually abandoned without any fresh advancements or updates

DYORing is the best defence against falling for a rug-pull scam

Look into the project’s personnel and assess their long-term business strategies

Follow the project on Twitter, Discord, or other public forums since an NFT project needs a huge active community of involved investors to have strong liquidity or lasting aesthetic value

5. Counterfeit NFTs

The act of creating a digital file as an NFT does not grant you ownership of it or create a new work of intellectual property

Instead, it merely converts a digital file into a blockchain storage object

A digital creator’s work can be easily stolen by con artists, who then make an account on an NFT marketplace and post the fake work for auction

When the community finds that the NFT you bought is fake, it will become worthless and there will be no way for you to get your money back

How can this con be avoided? Check the seller’s social media or Discord profile for a verification checkmark before placing a bid on the NFT for further credibility

6. Pump and Dump Schemes

In this instance, the phrase describes the act of someone or some group aggressively buying up a large quantity of NFTs to artificially increased demand

They do this quickly to give the impression that the NFT is well-liked, and once it attracts attention, they will cash out when the selling price reaches the level at which they feel comfortable

leaving left worthless assets for the highest bidders

Having said that, always check the NFT you wish to purchase transaction history

A pump and dump strategy may be revealed by numerous transactions occurring on the same day

7. Bidding scams

When investors wish to resell their purchased NFTs on a secondary market, bidder scams take place

After you have advertised your NFT sales, bidders may substitute your preferred currency with a lower-value cryptocurrency without informing you

If the seller doesn’t confirm the currency before finalizing the sale, this could result in possible losses for them

8. Customer support scams

Hackers contact unwary targets on Telegram or Discord by posing as technical or customer support workers for blockchain marketplaces, which is similar to phishing scams

Scammers provide links to fake official-looking websites while pretending to help with problems in order to obtain personal data and access to bitcoin wallets

Alternately, they can ask you to share your screen to fix the problem when what they really want is to see and screenshot the password to your cryptocurrency wallet

How do you prevent them? Verify the site domain and only request assistance through the official NFT marketplace

Scammers may pretend to be sending you security alerts regarding your account or NFT collection, but their methods are often the same

Before clicking on anything, be sure it is legitimate

REFERENCE

https://www.binance.com/en/blog/nft/common-nft-scams--safety-tips-2022-421499824684903591

https://www.kaspersky.com/resource-center/preemptive-safety/how-to-avoid-nft-scams

DISCLOSURE:

None of these articles constitutes financial advice. Articles are highly summarised to make it easy for the reader and save your time, so please DYOR further before putting your hard-earned money into any product mentioned.

Please note that the tech industry evolves rapidly and the info in this article is correct at the time of publishing. As Heraclitus said, “Change is the only constant,” so if anything sounds old or off, please holler on the socials or comment here so everyone stays peeled.

Affiliate links may be included in these articles, and signups through these links are highly appreciated. These links support better research and quality writing and help you find the right products with less hassle, so it’s a win-win :) Great care is taken to ensure the links are from authentic, non-spammy sources.

Stay up-to-date on the latest stories by signing up for the newsletter. Please don’t mark these emails as spam, instead, you can easily unsubscribe.

#nft #nftart #nft marketplace #scam #scams to avoid #niftyrevoluti

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thebeardynerd · 2 years

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NFT SCAMS AND HOW TO AVOID THEM

Investors, brands, and businesses, whether they favor non-fungible tokens (NFTs) or not, cannot avoid this new technology.

The NFT market expanded in 2021, with a projected total market value of $40 billion with celebrity endorsements from Snoop Dogg, Mark Cuban, and Stephen Curry.

However, as NFT became more popular, so did the interest of the public in NFT frauds, with Google searches for NFT scams reaching a record in early 2022.

Cybercriminals trying to extract profit at the cost of common NFT customers are flocking to the NFT business as more money floods in.

NFT scams have become increasingly sophisticated and serious over the last few months, underscoring the necessity for users to take caution in a decentralized environment.

Scams come in many forms, and it’s critical to understand how to identify them so you can stop them.

The following article will look at the most typical NFT scams and how to spot them and avoid them.

WHAT ARE NFT SCAMS?

Online scams do happen, just like any other investment, and they cost individuals a lot of money.

Some NFT marketplaces, for example, are phishing sites, where scammers establish websites that appear to be legitimate to trick visitors into providing personal information such as their crypto wallet personal key.

This is made worse by the fact that there is no way for them to get their money back.

BEWARE OF THE FOLLOWING NFT SCAMS

PHISHING SCAMS

The NFT phishing scheme asks customers for their confidential wallet keys or 12-word security seed phrases via fraudulent adverts on fake websites and pop-ups.

Fraudsters will hack into your account once they have your wallet’s keys and deplete all of your crypto and NFT holdings.

COUNTERFEIT NFTs

This occurs when con artists steal an artist’s work and post a fake in an NFT marketplace, where they auction off counterfeit artwork. Uninformed buyers will then purchase an NFT that is worthless.

PUMP AND DUMP SCAM

Pump-and-dump tactics are when a gang buys up NFTs to artificially increase demand. Unwitting investors who believe the NFTs have any value will enter the auction and begin bidding higher.

RUG PULL SCAM

A rug pull is a scam wherein a project’s promoters hype it up on social media, then suddenly cease supporting it and grab their investors’ money after the price has risen.

As a result, the value of the NFT tumbles to zero, causing investors to lose money on the NFT.

A variant occurs when the developers of an NFT eliminate the ability to sell the token, preventing purchasers from selling since the developers have included code to prevent this.

INVEST SCAMS

Investment scammers would often use the relative anonymity afforded to NFT over the internet to construct projects that appeared to be feasible investments, only to flee with the funds they received from interested parties.

FREE NFT SCAMS

Scammers use social media to impersonate legal NFT trading platforms to advertise NFT giveaway schemes, often known as airdrop frauds.

If you share their information and sign up on their website, the scammers will give you a free NFT. After getting access to your account, they urge you to connect your Metamask wallet credentials to claim your prize.

During this time, they record what you enter and begin stealing your library of NFTs.

BIDDING SCAMS

When investors wish to exchange their purchased NFTs on the secondary market, they fall victim to bidding frauds. Bidders may exchange your selected currency with low-valued cryptos without alerting you after they offer their NFT for sale in an NFT market, resulting in possible losses for you.

HOW TO AVOID NFT SCAMS

Never click on links or attachments that appear to be suspicious.

If you’re not sure who sent you your NFTs, don’t click on any links or attachments. Phishing emails are frequently used by hackers to trick consumers into giving up their MetaMask wallet information.

Make your passwords strong.

For your blockchain wallet and other NFT accounts, you should only use unique, strong passwords. This can effectively safeguard you from NFT scams, which are used by criminals to steal digital content from more vulnerable people.

Two-factor authentication should be enabled.

Using two-factor verification on all of your NFT accounts can also assist prevent scammers from gaining access to your digital assets. Biometrics such as fingerprint authentication and facial recognition assistance make it nearly impossible to impersonate you.

Always double-check the price of NFTs.

Check the price of NFT on an official trading site like OpenSea, Axie Marketplace, or Mintable before making a purchase. It’s usually a fraud if the price looks to be significantly cheaper than what’s published on a real trade platform.

Verify the accounts of NFT sellers.

If you’re thinking about buying an NFT, make sure to check out the seller’s account to make sure they’re legit. You can find the blue checkmark certifying their authenticity on their media platforms or Discord profile.

Never reveal your recovery phrase to others.

You should never reveal your restoration passwords to anyone, just like your ordinary passwords. This could endanger your NFTs as well as any other cryptocurrency in your wallet.

CONCLUSION

Now that you know the inner workings of the most popular NFT scams on the web, you may safely buy and trade while being aware of the warning indications of possible NFT fraud.

There’s no better feeling than learning how to help defend yourself and the assets you care about in this world of rising cybersecurity dangers.

Source links — NFT SCAMS AND HOW TO AVOID THEM

#nft scam #how to avoid nft scam

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onnabox · 2 years

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An excellent take from a fellow artist on facebook regarding NFTs:

“I get requests almost every day to mint my stuff on some blockchain (it’s even happened jokingly with people in my personal life). It's extremely annoying and I’m fucking tired of it, so I’ll vent a bit here.

I’m disappointed in many of my fellow artists and wish more people would realize it’s ok to not participate because NFT's (as they are now) are stupid and only about commodifying/financializing every aspect of art/life made digital. An NFT is nothing but a digital certificate signifying you "own" a thing you cannot hold physically, and it locks you into a cryptocurrency ecosystem which is shaky and opaque by design. Buying an NFT is like buying a star or a piece of otherwise useless of cosmetic DLC in a videogame (like horse armour). Even though half the companies that sold those stars are now out of business and cosmetics in games have no effect on gameplay.

In this environment, it's common for developers in the crypto market to disappear and steal from investors when a critical mass has been accumulated (look up "crypto rug pull"). It's also a way for unscrupulous buyers to money-launder since the laws haven't caught up to crypto yet, which is par for the course to unbridled big tech. Crypto aims to supplant banking in the same way Facebook aimed to supplant our lives and all artists participating are adding to it. It isn't about changing the system as much as it is removing accountability and concentrating power via a new and artificial scarce form of capital. If this is truly the path of history we are on, fine, but I don’t have to add to it and you don’t either, if you’re honest. There are (almost) always better ways to make money.

NFT's could be said to be about supporting artists by creating a space for exponential gains, but they are not about appreciating art. It’s big tech Sotheby’s. The only advantage for artists is that it creates a gambling scenario for buyers who believe that the pieces will go up in value over time. Like buying a poster for the flipping value over the appreciation for the art itself. Because if you really just loved the art and wanted the artist to make exorbitant amounts of money, why not just give it to them directly? Why do I need to digitally tokenize my artwork for you to pay me? If you love the art and believe in me so much, then fuck, just pay me $500-1k or more per poster instead of the usual $50-200 I ask. If you want, I could not send you a poster and just email a jpeg. I wouldn’t object.

I wish everyone participating in this grift (whether they acknowledge it as such or not) would look at the entire issue holistically. The impacts on the environment (crypto mining is awful and an unneeded expense on our atmosphere), the way more participation normalizes it and encourages others into what really feels like a MLM scheme, the lack of actual value inherent, the way it turns every piece of art into a mini stock market in which someone is going to lose by the end, only they won't have anything physical to show for it when they're the last one holding the bag and the injection of artificial scarcity (which is so stupid since you can just screencap any/every NFT that exists).

Scammers on NFT platforms like OpenSea are also notorious for stealing art from artists and selling it as if it were theirs the same way bots on FB and Twitter steal my artwork to use on bootleg t-shirts. The entire system is rife with disadvantages and opens up new avenues for piracy. NFT’s market themselves as the solution to a problem they are creating, which can only be solved by participating. “Well, if you were on the platform, then you could sell them yourself.” So the only way to avoid being thieved is to participate in the grift. How lame is that. Consent and respect are easily superseded in this system for those who decline its predatory advances.

Artists and developers should just be honest that this is about making more money above all else and speed-running the zeitgeist further into late stage hyper-capitalism instead of hiding behind high-minded ideals. Now, I don't think capitalism itself is always a bad thing, but I think there need to be checks and balances, and the whole crytpo-NFT scam is truly just about breaking all boundaries and supplanting old markets with new ones. It's not liberty, just diversification in a new kind of market. This isn’t a new system, it’s just creating digital fiefdoms and pressure for other artists to conform ("What, you don't wanna get rich, bro?"). And it's been really disappointing to see so many folks I respect uncritically go along with this just because it's an easy way to make more money.

Just say you want to make big money off of idiots who also don't know how half of this shit works. I'd personally respect it more. And despite the tone of this comment, know that I'm doing my best not to unequivocally judge everyone who's going along with this. I just think there should be more critical conversations instead of confusion and endless cheerleading, which is an affect only those with uncritical curiosity and/or a vested interest adopt. The rest of us just want to call it out for how stupid and greedy it looks and wish people would do better and spend their time making money in healthier ways. But this is The World Today, where the dollar trumps everything else. So. Fuck the environment, fuck physical art, let’s turn everything into a gamble. Let's embrace the metaverse with open arms. Because uncritically slurping up everything tech has done over the past decade has gone over so well. Sounds very healthy and sustainable.

I’m not an expert, so maybe I have everything totally wrong. But from what I’ve read/seen/talked about to people on both sides of the issue, this is my understanding. And maybe my opinion might change as new information becomes available. But for now, this is all just gross and I wish people would leave it to the techbro idiot’s corner it deserves to be in. Anyway. As you all were. And stop fucking asking me if I want to get in on this bullshit. No. Fucking. Thanks.”

#nft marketplace #nftart #NFT #nftinvestor #crypto #crypto currency #crypto coins #blockchain

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whatarenfts · 2 years

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How to Avoid Your NFT Collection from Getting Stolen

Recently, an OpenSea scam raised questions regarding the security of people’s NFTs. On top of that, OpenSea has banned certain people from using their platform. MetaMask has followed this action, prompting those affected to wonder how to avoid damages to your NFT collection.

The best way to avoid any situation is to prevent it from happening in the first place. Even NFTs aren’t entirely safe from online scams, especially from unscrupulous sellers who want to benefit from people’s goodwill and innocence.

Here are some valuable tips on how to safeguard your NFTs from scammers and digital thieves:

Understand how NFTs are stolen

Prevention and awareness are excellent tools to avoid suffering from digital theft, so you must understand how hackers operate and establish security measures based on that.

NFTs can be stolen if the security information of your crypto wallet, your emails, or your NFT marketplace account is compromised by hackers. Marketplaces are the Best Places to buy NFTs and hackers and scammers have a diverse arsenal of digital tools to snatch away enough of your information to make off with your NFTs.

They obtain this information via NFT scams to lure unsuspecting traders into providing the necessary security information, usually by promising discounts, bonuses, and free crypto.

Examples include:

Phishing scams

Pump and dump scams

Airdrop scams

Bidding scams

Investment scams

Phishing scams

The first major NFT scam is the phishing NFT scam.

Phishing is one of the primordial scams of the Internet, and sadly NFTs aren’t the exception. Whenever a new technology or social media platform comes out, phishers will do whatever is in their power to obtain your log-ins and passwords and steal your data. In this case, they’ll do that to steal your NFTs. These scams are also called rug pull scams.

To avoid the phishing scam, you must never share the contents of the seed phrase of your crypto wallet. Sharing any identifying information of your crypto-related assets is an absolute never, as disclosing this with any person will inevitably backfire and compromise your current and future NFTs.

Phishing scams can also happen in replicas of popular NFT Marketplaces so unsuspecting buyers end up compromising their personal information or even their wallets altogether. These aren’t ratchet replicas of OpenSea or Rarible rather they are incredibly detailed to the point that even a veteran NFT buyer might have a difficult time telling apart an accurate site from a phishing one. A person might end up spending all their valuable crypto on a counterfeit site, making sure that they are legitimate developers that have good reviews on their socials, and a considerable following would be a tell-tale sign.

To avoid compromising your personal information this way, verify the URL of the NFT marketplace before even attempting to log in. Fake websites have been an eternal staple of the phishing scammer’s arsenal, so always perform the due diligence of ensuring the site you’re purchasing from is legit.

Another type of phishing scam is the email phishing scam, where you follow an embedded link sent to your email that’ll take you to the fake NFT marketplace. They’ll entice you to click on the email by promising offers, sales, and special discounts for seemingly no reason. Once you type in your credentials and account information, the scammer will use spyware to record it and steal your NFTs. You can avoid this particular scam by verifying the address of emails received from an NFT trading marketplace.

Pump and dump NFT scams

Pump and dump NFT scams focus on the nature of NFTs being speculative tokens. Currency speculation causes investors to feel that the rate for a currency is wrongly valued. As their name implies, the pump and dump scam involves getting early investors into an NFT project to purchase it exclusively because of hype while simultaneously leaving original holders who didn’t sell on time to leave and make a profit. The consequences are that a group of the original buyers is left with NFTs that keep decreasing in value.

By the time the scammed investors realize what’s going on, the founding team has left all their social media and ghosted them.

To avoid this scam, research the project yourself extensively. Most NFT projects have a Discord community and active social media managers on Twitter, Instagram, and other channels. Interact with its community members and leaders to understand how their project works and answer standard questions. If their answers are sketchy or do not satisfy your curiosity, then it might be wise to steer clear of the project.

Airdrop scams

These types of scams seek you out directly more than phishing scams do. A scammer will pose as an NFT trading entity on social media and organize an NFT giveaway campaign in an airdrop scam. These are tempting because airdrops are desired by members of the NFT community who want to get free NFTs simply by spreading the word about an NFT project.

The airdrop scammer will promise a free NFT if you raise awareness about an NFT and sign up on their website. Most people don’t know that once they have you link your cryptocurrency wallet information to obtain your prize, they’ll ghost you.

Bidding scams

Bidding scams happen when investors desire to resell an NFT they purchased in a market on another market. Say someone purchased an NFT on OpenSea and then decided to resell it in another maker with lower-valued cryptocurrencies.

Investment scams

Investment scams involve using crowdfunding to scam investors from their money, by getting people all across the Internet to pump their money into a project and then making off with the profits without providing them with any return or guarantee on their funds, the scammer banks on the goodwill of strangers on the Internet.

As with many previous scams, the best way to bypass this is to verify the creators behind a project or even contact them directly to ensure they are trusted.

While offers, bargains, and sales might seem tempting, the best course of action with NFTs these days is to resist the urge to take cheap choices or use non-reputable NFT marketplaces.

How to safe keep NFTs

Now that we know the usual methods for hackers and scammers to steal your information and/or NFTs, here are some ways to improve your online security.

Use two-factor authentication

Purchasing in a brand-name NFT Marketplace is an intelligent idea thanks to their hands-on customer support and extra security measures, but that doesn’t mean that you shouldn’t take additional steps on your own to ensure maximum security. Each NFT holder’s responsibility is to ensure their online security levels are up to the standard. Create robust passwords for your crypto wallet your NFT accounts and choose two-factor authentication for all linked email accounts.

Hot storage

You can also store your NFTs in a non-custodial wallet protected by word seed phrases, passwords, and even touch identification. While usually very free on their own, these can still be vulnerable to phishing scams as these targets the information you provide yourself.

Cold storage devices

One way to safeguard NFTs is with an offline external drive known as cold storage. This keeps your NFTs out of the range of scammers as no one on the Internet can even touch your NFTs without having physical access to your cold storage device. One of the most basic cold storage wallets is the paper wallet, a document with private and public keys written on it printed from a bitcoin paper wallet tool. This wallet features an embedded QR code scanned and signed every time you perform a transaction. This means that you need to protect the paper against all odds, as its destruction will mean you won’t be able to access the wallet altogether.

Another possible cold storage wallet is the Ledger USB wallet, another physical wallet that uses a smart card to safekeeping private keys. It works just like a USB, and you’ll need to download a Chrome-based extension app to store the private keys offline. Like the paper wallet, damage to the Ledger Usb Wallet will render your NFTs gone forever.

As this is an external safekeeping method, you’ll have to purchase a cold storage wallet from a manufacturer. Luckily, these can be found for less than $100, though some can reach up to $150 in pricing.

Final words

Many people seem to believe that NFTs are risky because they are scams. The truth is that NFTs are becoming safer than ever thanks to the tamper-free nature of blockchain, though that doesn’t mean that some NFT projects or marketplaces are safe from scams.

With even NFT marketplace giants like OpenSea being victims to scams themselves, it’s always a wise choice to understand how to prevent your NFTs from being stolen. Scammers will stop at nothing to find whatever kind of information they can obtain from you to steal your NFTs, so take all necessary measures to prevent them from having their way.

Originally Published on our website - https://whatarenfts.com/how-to-avoid-your-nft-collection-stolen/

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bitrss-news · 2 years

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Tweeted

How to Avoid NFT Scams and Rug Pulls: 6 Red Flags to Avoid in 2022 Learn how to avoid NFT scams & rug pulls with these 6 vastly common red flags in NFT projects that even seasoned investors fall forRead All https://t.co/uI8iFo0pUx

— BitRss News (@RssBit) Mar 15, 2022

#IFTTT #Twitter

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socialyy-marketing · 2 years

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They PROMISED this NFT wasn’t a pump-and-dump

Non-fungible tokens (NFTs) are the newest crypto asset to hit the block(chain)- should we invest in them or ignore them? NFTs are made up of two parts: a pretty remarkable development and what most people will perceive.

The first reason to purchase an NFT is to show your support for the artist in a way that may increase in value as the artist’s work becomes more well-known. I’d throw $50 at a lot of digital artists to obtain a digital print with that in mind, or multiples of that to possess something one-of-a-kind from them.

The second motivation to purchase an NFT is to participate in a bizarre crypto-Ponzi pump-and-dump scheme. Until things settle down, the latter will take precedence over NFTs.

In the NFT marketplace, you can see a lot of scams and rug pulls- not to forget the pump and dumps. Most of the crypto experts are getting a lot of complaints nowadays because they got cheated by a scammer and stole the crypto. So is it not safe to invest in crypto anymore? Of course, it is if you know how to steer clear of the red signals.

So today, we are going to Prod a bit more profound into the pitfalls to avoid so that you no longer have to lose your money.

When Did The Scams Start?

Scams had started way before in crypto, even though it came into the highlights right about now. Even in the Bitcoin talk forum, you can see a lot of scam accusations that can be traced back to 2011. Since then, there have been endless scam complaints that have covered around 300 pages in total.

Some of them are pretty creative and can give you goosebumps when you get into detail for some of these. The amounts lost in these scams are generous, and that is why you would want to know about the pump and dump NFTs that can drown you. According to Bloomberg, billions of money are lost every year to crypto games, and there can be a new massive wave of scams coming up.

Most experts say that NFTs will be the killer app for the entire world of crypto, and within a few years, NFTs will consume all the major industries like gaming, art, and culture brands. For the old investors, they have hardened over the years on how to fight the dark phases of NFTs. But for the newbies, it can be a horrifying experience if they cannot avoid the adverse impact of the scams.

The new group of buyers who have not gone through the trials can face innumerable losses. And to make matters worse, NFTs are susceptible to market manipulation, and the legal protection might not be strong enough.

Phishing Campaigns

In the world of NFTs, phishing is a popular tactic: fraudsters transmit phony tokens to public addresses. That happens on the Ethereum blockchain and wait for consumers to interact with them.

Check Point Research, a part of publicly listed security firm Check Point Software Technologies, found an NFT phishing gap, which was patched by OpenSea, a significant marketplace for non-fungible tokens.

Check Point announced the discovery in a blog post on Wednesday and demonstrated the fraud in a video, claiming that clients’ wallets may have been accessed by opening pop-ups associated with malicious, airdropped NFTs.As CoinDesk detailed, NFT phishing tactics, scams are still prevalent on the platform and throughout crypto in general. For example, you can get a DM from the Mekaverse Community, and since it is trendy, you will think that it is coming from the team.

You click on the launch link and then collect your wallet for the minting process. And within minutes, your entire balance would go down to zero. Therefore you have to be away from the imposters and double-check as much as you can. And remember that imposters are not only on the discords but also on Twitter as well.

Rugpulls

Here is the next type of scam, which actually represents themselves as if they have access tokens, and so you think that they are giving you promises of utility as well as community engagement. But that is all just a facade, and they will not follow the promises at all. Again this rug pull can be categorized into hard and soft versions.

In the complex version, the NFT comes with a lot of bells and whistles, and as soon as they sell out, the entire team working behind it shuts down. In the case of the soft rug pulls, it will become even more difficult to notice, and in this case, the NFT again comes out with whistles, but the team does the bare minimum to keep up with the process instead of doing full-fledged work.

They will just keep people on their team at a minimum wage and pull giveaways so that people don’t call them a rug pull. But that does not mean you won’t lose your money on the soft ones.

Click here to continue reading: (https://www.socialyy.com/crypto/they-promised-this-nft-wasnt-a-pump-and-dump/)

#Pump #Dump #NFT #Scam #Phishing

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cyphershieldtech · 1 year

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How to stay safe from NFT scams

What is an NFT?

How do NFTs work?

NFTs are created from digital objects that represent both tangible and intangible items. For example:

Art

gifs and memes

Videos

collectibles

virtual avatars

Music

This is not a complete list. NFTs can be almost anything: In a notorious transaction, Jack Dorsey, the founder of Twitter, sold his first tweet as an NFT for more than $2,900,000 .

Types of NFT scams

Identity fraud

Rug pulls

Strategies to inflate and sell

Phishing scams

Customer Support Scams

Offer scams

Counterfeit NFTs

Scammers can plagiarize an artist's work and post the fake version on an NFT marketplace. Buyers who do not know this can buy a counterfeit NFT that is worthless.

NFT Giveaway Scams or NFT Giveaways

investor scams

Examples of NFT Scams

2021: Evolved Apes

2021: Fractal

2022: Frosties

How to avoid NFT scams

investigate

Don't open files from sellers you don't know well

Be careful with giveaways

Never share the private key or passphrase (seed phrase) of your cryptocurrency wallet with anyone

Check the project creator

Only trade with official sites

Always go directly to verified cryptocurrency trading websites and avoid using links or pop ups to enter key wallet information. Resist the lure of so-called bargains, which could lead to questionable blockchain networks.

Avoid visiting untrustworthy sites

Check the price of the NFT project

Before making any NFT purchase, check the price on an official trading platform, such as OpenSea or others. If the price is lower than on the legitimate trading site, be careful, it could be a scam.

Use burner wallets (disposable wallets)

check check marks

Conclusion

#nftsmartcontractaudit

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