Scams are all over the internet and sometimes it can be hard to spot them. NFT scams can also be difficult to spot on the internet as well, especially with how new they are to the digital world. Due to how new NFTs are, you could say that people are more vulnerable to NFT scams. There are also many myths about NFTs that are not necessarily true. Nonetheless, there are ways in which you can spot and avoid them.
Buying NFTs
First things first, we advise you to have two wallets. One of those will be the main wallet which you will make transactions with. The other wallet will be to hold the NFTs which you keep to yourself and don’t connect to anything externally.
In your live wallet, you will need to ensure you just about have enough digital currency to pay for an NFT when making a transaction. Once you have bought an NFT, we advise you to put it straight into the wallet which doesn’t make transactions, including digital currency.
The reason why you do this is to ensure the malicious scraper code will get very little back if they do try to drain your wallet. Leaving your digital currency and your NFTs safe in the other wallet.
Thoroughly Read Transactions and Keep Keys To Yourself
With each transaction, you should read the details carefully. Read as much detail as you possibly can before making the transaction. Another important thing to remember is that you should keep private keys to yourself. Do not give your private keys to anybody, especially sharing keys digitally. You should not share your private keys with “support” people as they may also be scammers.
Avoid Private Direct Messages
Something else you need to be aware of is those private DMs. It is one of the oldest scams in the book and surprisingly works on many, including those who trade NFTs. If you are involved with any discord chats or in groups on Reddit, turn off your private DMs. Furthermore, it is unlikely for a tech support employee to contact you privately. The reason is they would like to resolve your issue publicly as this could help people in the future who have a similar problem to yours.
If you do receive any direct messages from people who claim to be tech support and are a stranger, avoid clicking on the links they have shared with you. These people in your direct messages may be imitating someone reputable in the group you are in.
Scammers imitating other people have been common for many years. You may have already seen this in your emails. You may have received an email claiming to be from Microsoft or other major organisations. It is a common type of scam, including NFT scams, so make sure you double-check accounts which have messaged you or emailed you before responding to them.
If you come across anyone who tries to scam you through email or DMs, report them and block them. Make people aware of them in the groups you are in so they don’t fall for it.
How To Avoid Scam Projects
One thing you should look out for is suspicious social media accounts. For example, an account that has a low number of tweets yet has thousands of followers already. A high follower count but low engagement is usually what a dodgy Twitter account would like. On Discord, you can also expect something similar. This includes groups which have a lot of members but nobody posts in the group, including devs who are not involved with the group or barely post.
Roadmaps are another thing to be aware of. For example, a project roadmap should include specific descriptions of what the project is, why the project began, who to contact if you have any questions, project timelines and finally, the goal of the project.
Make sure you research the artists or those credited for the NFT. Firstly, check to see if the artist discusses NFTs generally and that specific project. If they do both, they are likely to be affiliated and legitimate. Another thing to check is whether the project matches the artist’s usual style however this might be difficult for the average NFT trader. Finally, check the artist’s account to see if it has just been created or has been around for some time.
What Happens If You Do Get Scammed?
If you have been scammed there are a few things you can do. Firstly, don’t resell that NFT to make money back on what you have just lost. We understand you don’t want to lose the money but you just need to accept the loss because the scammer will continue to make money for resells. Also, you are participating in the scam yourself once you are doing this. It also normalises scamming amongst the NFT community so do not become a part of this.
You should also bring it up to the NFT community. That includes Reddit and Discord forums as well as tweeting about it. Provide them with every detail possible. Including how they completed the NFT scam and what they wish you did differently in an attempt to avoid it. The more people are aware of these scams, the less likely people will get scammed. Not to mention it will help people spot scamming trends amongst the rest of the community.
To Conclude
Avoiding NFT scams will be difficult until you read about others or you experience one yourself. Try to become familiar with the different NFT scams however there are many out there. Just remember, if something is a little odd with what you are doing, it likely is. Just like cryptocurrency, NFTs are very new and they don’t have any regulatory bodies at the moment. It is one of the reasons why people don’t get involved with NFTs. They are afraid that they will easily get scammed when trading with NFTs. Make sure you are involved with different communities to keep on top of the latest scams.
