Seven Common NFT Scam Tactics

The Reality of Cryptocurrency Scams

Let’s start by confronting a difficult truth. As with other trends in blockchain, cryptocurrency scams are nothing new. Simply put, wherever there’s profit, there’s criminal activity. This enduring rule applies equally to the digital asset sector.

Of all blockchain-based innovations, NFTs may be the most successful to enter mainstream markets. Recently, the number of NFT buyers and sellers reached about 280,000, and original developer wallets totaled approximately 185,000. Many users are experiencing cryptocurrencies for the first time, making them easy targets for fraud. Their lack of experience leaves them especially vulnerable to sophisticated scams.

During a recent boom, global NFT sales exceeded $4 billion, while Google searches for “NFT scams” hit historic highs. This simultaneous surge shows that as the market grows, fraudulent activity rises as well.

It’s crucial to understand that buying an NFT featuring an image does not mean you own the image’s copyright. You cannot copy or use it commercially. What you actually own is a record of purchase on the blockchain. This unique type of ownership makes it difficult to regulate the NFT market like traditional art markets.

Still, NFTs do create scarcity, allowing buyers to acquire truly unique digital assets, which benefits digital artists. This technical innovation opens new revenue streams for creators and new investment opportunities for collectors.

Common NFT Scams

One of the most notorious recent cases is the “Evolved Apes” collection of 10,000 NFTs. This fraudulent NFT project exhibited many classic industry hallmarks and is worth a closer look.

Buyers received unique ape artwork. The project also pitched a blockchain fighting game where apes would battle for cryptocurrency rewards, and NFT sales proceeds were said to fund game development. This promise sounded innovative and compelling, attracting many investors.

Unfortunately, the developer known as “Evil Ape” vanished as soon as the NFTs were sold. At the time, Evil Ape held 798 ETH—about $2.7 million. This case clearly illustrates the risks in the NFT market and the need for investor vigilance.

Another infamous scam was “Mercenary”, a medieval-themed NFT game featuring Play-to-Earn mechanics and a new crypto token, “Mercenary Gold.” Recently, the Mercenary scam team ran ads on crypto news outlets via Twitter, drawing broad attention.

But it was a complete fraud. The Mercenary Gold scammers stole at least $760,000 through this NFT scam. This case is a stark reminder that even seemingly professional, mainstream projects can harbor major risks.

“Ape” Scams Return

Big Daddy Ape Club is a Bored Ape Yacht Club knockoff, but appeared even more successful. Scammers tried to fabricate celebrity interest from Jimmy Fallon and Paris Hilton in Bored Ape Club. Some ads convinced people, but in reality, these celebrities never endorsed Big Daddy Ape Club.

Big Daddy Ape Club’s scammers coaxed customers to “mint” fake NFTs for a premium of 1 Solana—worth about $135 at the time. This price was low enough not to scare off buyers, but high enough to generate significant profits for the fraudsters.

This scam targeted more than 9,041 victims and stole over $1.3 million. This staggering number highlights both the scale and seriousness of NFT scams.

NFT Pump-and-Dump Schemes

Unfortunately, pump-and-dump schemes have become almost predictable in crypto and NFT markets. In these schemes, a group coordinates to buy NFTs or tokens and artificially inflate prices. This market manipulation severely hurts ordinary investors.

After prices spike, fraudsters quickly sell and cash out, leaving other investors with worthless assets. Crypto trading also often involves wash trading (when the same entity buys and sells assets to simulate market activity), creating a false sense of liquidity and drawing in naïve investors.

NFT projects also face “pump-and-dump” criticism. In publishing, a buyer known as “Metakovan” was accused of buying works to fund a pump-and-dump, including their own token, B.20. Leveraging reputation to manipulate the market undermines fairness and transparency.

Risks of Large-Scale NFT Projects

“CryptoKitties” was among the earliest NFT applications, built on Ethereum. After launch, it quickly became hugely popular. One of the top cats sold for the equivalent of $155,000 in ETH. Yet, just six months later, prices had dropped 95%. This extreme volatility underscores the high-risk nature of the NFT market.

How can you avoid falling for fake NFT projects?

First, review the project’s history and wallet transaction details. On OpenSea and other NFT platforms, you can check transaction histories and buyer counts for collections. EtherScan can show all Ethereum blockchain activity. These tools help verify a project’s authenticity and activity.

Also, follow the project on social media. Check their Twitter account and join their Discord channel. A strong project should have many investors and collectors engaged, ensuring good liquidity, artistic value, and lasting community support. An active, transparent community is a key reliability signal.

NFT Copyright Infringement

Fake NFT scams are surging, and copyright infringement reports are on the rise. Scammers copy artists’ work, mint it as NFTs, and sell it to unsuspecting buyers. This cheats creators and deceives well-meaning collectors.

DeviantArt—a community with over 70 million members and 50 trillion artworks—hosts many stories of theft. DeviantArt has launched a new tool to scan public blockchains and third-party platforms, warning members attempting fake NFT art scams. Over 50,000 infringement alerts have been sent, underscoring the platform’s commitment to creator protection.

NFTs and Intellectual Property

Remember, minting artwork as an NFT is not the same as owning its intellectual property. With user-friendly tools on platforms like OpenSea, anyone can easily turn images into NFTs. Scammers can steal art, create fake OpenSea accounts, and sell counterfeit works. **If the community discovers the fraud, your NFT is worthless.** Worse, there’s little chance of recovering lost funds.

Always thoroughly research before buying NFTs on any platform.

On OpenSea and other marketplaces, a blue checkmark beside the artist’s profile indicates verification. If the artist has Twitter, a website, or other social media, use these to confirm their identity. Ask directly if the work is theirs and if the profile’s legitimate. Use Discord to cross-check with the community. Multiple verification steps greatly reduce the risk of buying fakes.

Phishing Scams

To buy your first NFT, you must register a crypto wallet. **MetaMask is one of the most popular Ethereum wallets for NFT storage.** Its popularity also makes it a prime target for scammers.

Recently, MetaMask users have faced phishing attacks. Scammers use fake ads to request wallet private keys and 12-word seed phrases. Their tactics go further: **malicious fake NFT pop-ups appear on Telegram, Discord, and public forums.** These attacks are growing more sophisticated and harder for ordinary users to spot.

Phishing can compromise your personal information and expose wallet assets. Ozzy Osbourne’s “CryptoBatz” project was attacked—just two days after launch, supporters were targeted by fake NFT phishing scams. This scam aimed to steal cryptocurrency from wallets, and the malicious link was even sent by the project’s official Twitter account. Even official channels can be compromised.

How do you protect yourself?

**Strictly safeguard your personal info.** To create a hardware backup or recover a crypto wallet, you need your seed phrase. Never enter information into MetaMask pop-ups or any pop-up window! Only use verified websites for crypto transactions—never use pop-ups, links, or emails.

Never share your seed phrase. It’s the last line of defense for your assets.

Fake Crypto Influencers

**NFTs exploded thanks to high-profile celebrity endorsements.** These figures profit in many ways, and their support brings massive attention and funding to projects. But since NFT trading is online, most people have limited information about marketing, creating opportunities for fraudsters.

Such scams often involve fake endorsements (brokers posing as commission agents). By the time victims realize the supposed celebrity ambassadors weren’t involved, they’ve already lost money. These scams are especially deceptive, since people tend to trust celebrity-backed products.

Recently, rapper 6ix9ine’s NFT Trollz collection gained traction on social media. The project claimed NFT holders would receive royalties and that 5% of each transaction would go to original Trollz token owners. This promise seemed enticing, luring many investors.

However, questions about legitimacy quickly arose. NFT Trollz promised $100,000 in charity donations, but many buyers said this never happened. Many demanded royalties and got nothing. This case again proves that even celebrity-backed projects may be fraudulent.

To avoid such scams, research projects thoroughly. Are the celebrity endorsements authentic? Can the project deliver on its promises? Review the white paper, team background, and roadmap, and consult with other investors in the community.

Auction Scams

**Bidding scams are common in secondary NFT markets.** These occur when someone who already owns an NFT tries to resell it. After listing your NFT, a bidder may attempt to switch the payment currency—a clear red flag! For example, $5 and 5 BTC are worlds apart in value, so you must be vigilant.

Typically, scammers get you to list your NFT in one cryptocurrency (like ETH), but at the last moment switch payment to a much less valuable token. If you’re not careful, you could sell your NFT far below its expected value.

Always verify the payment currency and reject any offer below your minimum acceptable price. Before confirming a transaction, review all details: currency type, amount, and buyer reputation.

Fraudulent Websites

Cases of NFTs vanishing after purchase usually happen on scam websites. **This is because blockchain contracts aren’t the same as actual artworks.** When you upload an original image to OpenSea, purchases are made with cryptocurrencies like Ethereum.

Smart contracts are what’s minted on the blockchain. While the contract is minted, the content itself isn’t stored in the contract. An NFT is just a certificate for asset ownership lookup, and the asset can be anything. This technical detail gives scammers an opening.

That’s why it’s vital to use trusted centralized platforms. Don’t buy links that simply point to images. Content stored at a URL can change at any time, leaving buyers with nothing. Some projects even delete the image files after selling NFTs, turning them into useless links to blank pages.

When purchasing NFTs, avoid scams by ensuring you receive tangible or digital assets such as JPEGs, MP3s, or PDFs. Projects that store assets on decentralized platforms like IPFS are best, since assets remain accessible even if the project disappears.

Technical Support Scams

Unlike many fake NFT scams, these are straightforward. **Scammers pose as customer support for NFT projects.** Their goal is to contact you and extract highly confidential personal information. These scams typically occur on Discord, Telegram, or Reddit—favorite forums for crypto fans.

Scammers reach out, claiming your account has issues or needs verification. They may use usernames and avatars that closely mimic official accounts, appearing legitimate. If you trust them and share sensitive information, your assets are at serious risk.

Sharing your wallet seed phrase means losing all assets. The seed phrase is the master key—anyone with it has full control of your wallet.

If you receive direct messages from project founders, be skeptical. Most NFT projects never use Discord or Telegram for direct user outreach. Legitimate projects post public announcements, not private messages. If you’re unsure about a message, verify it via the official website or other trusted channels.

Be Extremely Careful When Buying NFTs

No one wants to miss out on revolutionary innovation. That’s why blockchain and NFTs have drawn so much attention. People naturally want to be part of the next big thing—an understandable urge, but one scammers exploit.

Crypto assets have real value and huge potential. But scammers know many want to get rich overnight. They prey on this by designing schemes that exploit greed, fear, and inexperience.

Scams are avoidable. Always stay alert. Only buy when your information is verified. Investigate projects thoroughly. And safeguard your data at all times.

Before joining the NFT market, consider:

1. Learning blockchain and cryptocurrency basics
2. Investing only what you can afford to lose
3. Storing large assets in hardware wallets
4. Regularly updating your knowledge of scam tactics
5. Joining trusted communities and learning from experienced investors

Remember: if something sounds too good to be true, it’s probably a scam. In this fast-moving market, caution and due diligence are the best ways to protect your assets.

FAQ

What are the seven most common NFT scams?

The seven most common NFT scams are: 1. Private key theft; 2. Fake auctions; 3. Platform impersonation; 4. Phishing websites; 5. Celebrity impersonation; 6. Scam trading platforms; 7. Fake collections.

How can you identify fake NFT projects and scam smart contracts?

Review the contract code and creator background, verify official social media accounts, avoid unknown links, and check project transaction volume and community activity. Double verification can greatly reduce your risk of being scammed.

What are the characteristics of NFT scam messages on Discord and Twitter? How can you avoid clicking malicious links?

Scam messages typically promise high returns, impersonate official accounts, and request private keys or wallet access. To avoid them: look for official verification badges, don’t click unfamiliar links, go directly to official sites, enable two-factor authentication, and be cautious with direct message invitations.

What is NFT floor price manipulation and a “rug pull”? How can you guard against them?

Floor price manipulation involves creators pumping prices and then suddenly withdrawing funds. A “rug pull” is when creators disappear, causing investor losses. Prevent scams by researching creators, checking community activity, reviewing smart contract transparency, and watching for abnormal transaction spikes.

How do fake official accounts and phishing sites steal wallet private keys and assets?

Scammers create fake official sites or social accounts to trick users into entering private keys, seed phrases, or verification codes. Once you provide these, they can steal your crypto directly. Always verify URLs and avoid suspicious links.

What are “airdrop traps” and “free minting scams” in NFT fraud?

An airdrop trap is when scammers fake free NFT giveaways, luring users to click malicious links and expose wallet credentials. Free minting scams promise free NFT creation but contain smart contract traps that steal assets. Both exploit greed to commit fraud.

How can you verify the authenticity of an NFT project? How do you confirm the official site, contract address, and developer information?

Check that the official site domain is correct, verify the contract address using a blockchain explorer, and confirm developer background information. Review community activity and historical records to ensure legitimacy.

What should you do if you fall victim to an NFT scam? Are there any remedies?

Immediately stop interacting with the scam NFT and don’t click links. Gather evidence and report to relevant platforms. Change your passwords, enable two-factor authentication, and secure your wallet. Consult legal experts for recovery options. Regularly review wallet transactions and stay alert for follow-up scams.