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NFTs: here are the scams to avoid
NFTs: here are the scams to avoid
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NFTs: here are the scams to avoid

By Eleonora Spagnolo - 4 Apr 2021

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Even in the world of NFTs, scams are beginning to appear

The NFT sector

The year 2021 will be remembered as the boom of the sector of NFTs, Non-Fungible Tokens, which are unique tokens representing various digital and non-digital elements, even if their highest expression is linked to multimedia works by various authors, including those from traditional art.

Somewhat reminiscent of the deflationary cryptocurrencies like Bitcoin (BTC), these assets are also unique and finite in terms of quantity. However, a multimedia work does not necessarily have to have only one NFT, since it is possible to create real collections with limited numbers of copies of the same multimedia work.

Another aspect that distinguishes these assets from others is their authenticity, in the sense that they cannot be counterfeited in any way, given that the author uses a specific address and therefore his work is directly linkable to its author, with the possibility of seeing the history and the trend of the price during the entire life cycle of the NFT.

Scams in the NFT world

Unfortunately, criminals and miscreants have wasted no time in exploiting the hype in this sector and have started to infiltrate, using various tricks to deceive their poor victims on several levels.

What methods are criminals using to counterfeit NFTs?

Scammers are creating online stores where they offer various works for sale without showing the relevant information recorded in the blockchain. Therefore, unless the address of the file is known, it is impossible to view the digital artwork, leading to the belief that something valuable has been purchased.

Then there are platforms that are copies of the original ones where the domain of these websites is a little different from the originals. 

These are scam copies of the original platforms, and in this case, the scammers’ tactic is to gain access to the wallets of the victims by inducing them to enter private keys or seeds.

Another tactic is to impersonate the authors of the NFTs and create fake profiles and pages and fake NFTs.

These are just some of the methods used by scammers to steal crypto from unsuspecting victims.

How to defend against NFT scams?

One warning is to only go through official channels and well-known platforms to avoid dubious platforms.

It is also a good idea to check the official channels of the artists or projects and see if there are any ads or direct links to the NFTs you want to buy. This way you will have the source of the relevant NFT.

Finally, remember that irrespective of the means of creation or dissemination of digital artwork, the law protects the author from almost any illegal activity that a third party might carry out by exploiting the works and name of the original authors.

To find an answer to the fateful question “Can I create an NFT of a work I own?”, we refer to the recent book Mastering NFT – A practical guide for beginners and non-Beginners.

 

Eleonora Spagnolo
Eleonora Spagnolo

Journalist passionate about the web and the digital world. She graduated with honours in Multimedia Publishing at the University La Sapienza in Rome and completed a master's degree in Web and Social Media Marketing.

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