How do NFT scams work?

An NFT scam usually works when scammers steal the NFT from your crypto wallet by tricking you. Those who are unaware of such scams end up selling their NFTs to websites and creators involved in such scams. There have been many NFT scams in recent years.

They attach a monetary value to their NFTs and then use them to hack into their wallets via phishing emails or other ways. This way, the hacker breaks into your crypto account and gains access to your NFT wallet, from where they steal your NFTs quite easily.

Are NFT scams common?

If you look at the records from last year, you will be surprised how investors have witnessed so many losses due to NFT scams. ethereum dapps development services This is why knowing the risks of cybercriminals is essential, and it will help you protect yourself and your NFT tokens from fraudulent activity. However, let’s review some of the statistics from last year to give you a brief idea.

• Frosties NFT investors lose $1.3 million trying to buy 8,888 NFTs.
• An NFT collector, Todd Karmer, suffered a $2.2 million loss due to phishing mail he received in 2021.
• Another story from Fractal, who witnessed a loss of $150 worth of crypto through the fake NFT giveaway held in 2021.

These statistics show you that NFT scams are quite common, which is why you should take precautionary measures to ensure that you can protect yourself and your NFTs from NFT scams and fraud.

How to avoid NFT scams?

As the demand for NFTs is increasing rapidly, the chances of scams are avoidable. Nowadays, everyone knows about the importance of NFTs and their popularity in the last decades. These digital assets can be used in different ways, such as shopping online on platforms that accept NFTs, which also means you risk NFT scams.

Here are some ways to consider reducing or eliminating fraud risk in that situation. So take a look so you can protect yourself from NFT scams.

• Never click on any links that sound suspicious

If you receive a link or attachments, including their NFTs, don’t open them until you’re sure who the senders are. Often hackers send phishing emails to the NFT user. In such a situation, blockchain dapp development company if you open the mail and click on the provided link, all your Metamask wallet or other wallet information will be leaked to the hacker.

That way, they can misuse your NFTs and this causes you a significant loss. That is why; You are advised not to click on any of the links offered by the unknown sender. It will protect you from NFT scams and your credentials will remain safe within you.

• Create a strong password
  When adding your wallet to the NFT marketplace, be sure to create a password for your NFT accounts and wallets. In this way, it will be quite difficult for a hacker to crack your password and access your information in the NFT wallet.

These passwords protect you from NFT scams and cybercriminals who can steal digital assets from the most vulnerable owners. So if you don’t want to be on that list, be sure to protect your account with strong passwords.

• Opt for two-factor authentication.

If you activate two-factor authentications on your NFT accounts and wallets, it will be impossible for a scammer to control your digital assets. They protect your account and make it invisible to hackers.

Also, fingerprint scanners and facial reorganization make it quite difficult for the hacker to replicate your identity. No matter how professional the hacker is, there is still no chance that he can access your account after two-factor authentication.

• Always check the NFT price.

Before buying the NFTs, it is essential to check the price of the NFTs. You can do it with the help of official NFT marketplace like OpenSea, Axie marketplace, or mintable. This way, it will be quite easy for you to realize that the prices you are paying for NFTs are worthy and real.

Also, if the prices listed on this marketplace are much lower than those listed on trading sites, then it is surely a scam. Don’t go for that; Ultimately you will lose your NFTs and credentials.

• Verify NFT seller account

If you want to buy NFTs, you will have a lot of seller options. But some of them can also be fake. That is why it is essential to verify the NFT seller’s account, ensuring that the NFT seller is real.

Also, most of the NFT creators and sellers have accounts on social media platforms, so you can visit their profiles to find out their real identity and whether they have a blue tick on their social media profiles or not. If yes, you can buy from the seller without hesitation. On the other hand, decentralized app developer if the seller is unverified, look for the seller that has a blue tick instead of looking for someone who is unverified.

• Never share your recovery or seed phase

Like your other credentials and passwords, make sure you don’t share your seed or recovery phase with anyone, no matter how close they are. You may lose your NFTs and other cryptocurrencies stored in the wallet. If you don’t want to risk it, regularly update your account with a new password.