4 scams that sneak into the NFT boom

An investigation by fraud prevention platform Bolster, warns that scammers are setting up their traps and lying in wait for the unwary, as interest in non-fungible tokens (NFTs) grows. So, with the idea of ​​prevention, the company revealed which are the four forms of scam that are attacking the ecosystem of irreplaceable tokens.

Whoever operates in the NFT space, must also be attentive to the main modalities that cybercriminals are using who seek economic benefit in the midst of the boom. These variants include potential phishing attacks, promises in exchange for something disguised as airdrop or free distribution of tokens and other scams launched on social networks, according to the study.

The document warns users to be alert, to detect fraud and not to fall into the trap. Here are the modalities highlighted in the report:

1.-Impersonation of NFT trading platforms

The scam known as IP spoofing or identity theft via IP is when a cybercriminal, or group of them, manages to replicate a web page with the idea of ​​impersonating the website that the user tries to visit. Under this modality, attackers generally attempt phishing attacks with the idea of ​​stealing users’ personal information, such as login passwords or credit card details.

Bolster’s investigation alerts to spoofing of NFT’s trading platforms. The company suspects that a wave of attacks that would be using this modality is already underway. Your guess is based on the number of domain registrations with already known website names like Rarible, OpenSea, and Audius.

Before a fake or mirror site can be created, a domain must be registered and in that sense, the researchers found it suspicious that this type of registration will increase by almost 300% in March 2021 compared to previous months.

The research also found a considerable increase in the registration of suspicious domains using related words such as crypto, nft, market and trading. The registration of these domains had a considerable increase in March in relation to the previous month of this year. However, the firm estimates that they will double by the end of April.

A useful piece of information to detect this form of fraud is that these so-called “NFT stores” as Bolster calls them, although similar to the originals, are not based on proven brands, so they use unaffiliated logos and content to sell non-existent NFTs. .

The NFT ecosystem is already under attack from scammers for whom the boom does not go unnoticed. Source: Mikhail Nilov / pexels.com

2.-Imitations and plagiarism

The report refers to the sale of a Banksy NFT that was not created by the artist himself. This particular fact that was reviewed by CriptoNoticias, It is considered as a precedent for counterfeits or imitations that can be presented in the near future in the world of non-fungible tokens.

In fact, the investigation found that some new website domains such as banksynft were recently registered. [.] Com and banksynfts [.] com.

3.-Gifts and free releases

Another prominent scam tactic, and perhaps the most damaging that the report identifies, has to do with airdrops. This eye-catching marketing strategy commonly used for the launch of a token or cryptocurrency, it can also be used by malicious actors.

At Bolster, we detect thousands of such scams every month. They target famous cryptos, as well as brands and personalities associated with them. In these scams, scammers target crypto enthusiasts by offering free crypto / NFT / tokens related to the NFT markets.

Bolster NFT Scam Investigation.

Recently such a scam involved the NFT Rarible marketplace, when a fake platform encouraged users to send their RARI tokens to a certain wallet controlled by criminals. The ad promised free gifts in return to encourage crypto adoption. However, such an offer was nothing more than a hoax, the report notes.

With the idea of ​​catching the unwary, scammers also launch this modality through social media platforms such as Twitter, Facebook, Telegram and Discord to spread their traps.

4.-Beware of false communities scattered on social networks

Among the scams that spread through social networks, Bolster identified the fake communities that are looking for the unwary on Telegram and Discord. While it is true that there are communities of NFT projects that congregate and communicate often sharing information and exploring ideas, there are also false communities.

“Scammers have created fake groups related to almost every brand in the crypto space. Most of these groups claim to be the ‘official supporter’ or ‘official community’ of the target brand, ”the researchers detail.

These false communities spread on social media to trick users to whom they will try to sell fake NFTs or nonexistent. Many of them claim to belong to the Rarible community.

The Bolster team recommends that, to avoid this scam, before joining a community, it is best to verify that it is the official forum of the brand. “In most cases, a simple Google / Twitter search can help you find the right community or group,” the researchers add.