When hearing the term NFT, one often wonders, what is it?
There is a definition of NFT stating that you are the owner of a unique object in the digital space.
These objects, which are not physical or tangible, are cryptographic tokens that can be purchased on an internet exchange, and the NFT will be recorded as a line of code in the blockchain, with the right to own it as an asset. NFTs can be:
- A picture,
- An animation,
- A game character,
- A particular movie,
- Even a song;
- An in-game item.
They are all unique in the digital world. The owner is provided with a link to the original NFT, which is preserved forever, using cryptographic protection methods that prevent forgery of this information.
How to Avoid NFT Fraud
Becoming the owner of such an image, every owner tries to maintain its exclusivity and protect the NFT in the blockchain system from fraudsters, which greatly attracts criminals. They constantly improve and try to find ways to the online space containing NFT images. For criminals, owning a digital artwork made in the form of a token allows them to open up new opportunities with access to unique online communities or interactive organizations.
Fake NFTs and Digital Assets
For a fraudster, stealing an NFT is like committing the theft of the century, becoming the owner of a unique digital image on the internet, which can be very expensive.
To possess digital assets, fraudsters are ready for many actions, for example, they may pretend to be customer support staff of a website.
Signs of Fake NFT Projects
Investment security in digital assets, when the NFT owner on a marketplace platform encounters certain difficulties and needs advice from a professional on a public resource. At this point, fraudsters become active and offer help, calling themselves representatives of the online store.
Such employees may require access to the monitor to solve the problem. Agreeing to this could expose personal data from the cryptocurrency wallet. Access to the device will provide the fraudster with screenshots of QR codes. To confuse the NFT owner even more, fake employees may provide links to malicious clone sites where personal data must be entered, allowing access for the theft of the contents of the crypto wallet.
Fraudsters in the World of NFTs
NFT hunters often create fake information about the release of the latest token collection, which allows them to launch a larger fraud scheme later. This scheme is targeted at people who purchase such NFTs for the benefit of scammers without knowing it.
The fill and sales of such sites often happen quickly. After selling all the NFTs, the fraudsters:
- shut down the site;
- close access to the site;
- escape with the money.
In reality, such images are worthless, and the artificial hype around the new currency allows fraudsters to enrich themselves at the expense of investors in this market.
Protection Against Digital Asset Scams
Criminals on the internet often present themselves as owners of official platforms where NFT trading takes place, luring clients with:
- phishing email newsletters;
- intrusive advertisements with promotional offers, clicking such a link can guarantee landing on a fake site;
- it might also be required to link a digital wallet and special seed phrase to purchase an NFT image, which gives fraudsters access to information and potential access to the victim's e-wallet.
To ensure the maximum protection of your assets, it is necessary to:
- verify the links sent, if in doubt, do not click on them;
- seek help only from official organizations dealing with NFT projects;
- check the authenticity of messages sent with information about the threat of NFT collection exposure;
- do not trust confidential information to unfamiliar people or those who contacted you independently through electronic messengers;
- study the platforms trading NFTs;
- familiarize yourself with reviews and prices for new NFTs;
- before purchasing an NFT, study the transaction history, which should not be completed in one day.
It should be remembered that there are many NFT hunters on the internet, so to preserve your digital assets and not become a victim of fraudsters, you should exercise a high degree of caution. Do not disclose the existence of a super image to unfamiliar people.