The Seven Most Common NFT Scam Tactics

The Reality of Crypto Asset Scams

Wherever there is money to be made, illegal activity is never far behind. Among all blockchain-based innovations, NFTs have arguably achieved the greatest mainstream adoption. Over the past few years, the NFT market has attracted around 280,000 buyers and sellers, with approximately 185,000 original wallets created. Many of these participants are newcomers to the crypto asset space, making them especially susceptible to scams.

Recently, global NFT sales surged past $4 billion, and Google searches for the term “NFT scam” hit record highs. This reflects a direct correlation between the rapid expansion of the NFT market and the increase in fraudulent activities targeting it.

Owning an NFT that contains an image does not mean you hold the rights to the actual image. You cannot reproduce or commercially exploit it; you only own a blockchain record of the purchase. This fundamental aspect adds another layer of complexity to NFT-related scams.

Unlike the traditional art market, regulating NFTs is challenging. However, NFTs can create digital scarcity and allow buyers to own unique digital files, potentially supporting digital artists. The combination of this technology’s innovation and regulatory gaps makes NFTs a prime target for scammers.

Common NFT Scam Tactics

The “Evolved Apes” collection of 10,000 tokens, released in recent years, is one of the most infamous NFT scams. This fraudulent project exemplified the risks in the industry. Its cartoon ape designs, following the success of the Bored Ape Yacht Club, became a classic pattern in the NFT space.

Buyers received unique ape designs and were enticed with the idea of a blockchain fighting game where apes would battle for cryptocurrency rewards. The project claimed NFT sales would fund the game’s development.

However, the developer, known as “Evil Ape,” disappeared immediately after selling the NFTs—leaving with 798 Ethereum, valued at about $2.7 million at the time. Buyers had no recourse. The Evolved Apes game never existed, and those who bought the fake NFTs were left with nothing more than JPEG files as mementos of their investment.

Another high-profile scam, “Mercenary,” posed as a medieval-themed NFT game with play-to-earn mechanics and its own token, “Mercenary Gold.” In recent years, the Mercenary scammers advertised heavily via crypto news sites and Twitter, drawing significant interest. It was all a ruse, and the perpetrators disappeared with at least $760,000.

The Return of Ape-Themed NFT Scams

Big Daddy Ape Club parodied the Bored Ape Yacht Club, presenting itself as a more successful project. The campaign implied that celebrities like Jimmy Fallon and Paris Hilton were interested in Bored Ape Club. These ads may have convinced some, but none of these celebrities ever endorsed Big Daddy Ape Club.

The scammer behind Big Daddy Ape Club encouraged users to mint fake NFTs at a premium price of 1 Solana (about $135 at the time). In the end, users could not mint any NFTs, but Solana network fees were still deducted. This scam targeted more than 9,041 people, stealing over $1.3 million.

These scams typically capitalize on the success of legitimate projects, using similar names and designs to deceive investors. It's critical for investors to rigorously verify project legitimacy.

NFT Pump-and-Dump Scams

Pump-and-dump schemes have become almost routine in the crypto and NFT markets. These schemes involve groups buying up NFTs or tokens to artificially inflate their price. Once prices peak, the scammers sell off their holdings, saddling others with worthless assets.

Wash trading—where the same party buys and sells assets to themselves—is also common, inflating trading volumes and prices. This market manipulation can mislead investors and cause significant losses.

One early NFT phenomenon, “CryptoKitties,” ran on the Ethereum blockchain. After its launch, it became wildly popular, with one cat selling for the equivalent of $155,000 in Ethereum. Six months later, the price dropped by 95%. This demonstrates the extreme volatility of NFT prices and the risks of pump-and-dump activities.

To avoid falling for fraudulent NFT projects, always check the project’s history and wallet records. Platforms like OpenSea allow you to review transaction counts and buyer numbers for NFT collections, while EtherScan lets you examine all Ethereum blockchain transactions.

Stay engaged with projects on social media—check their Twitter, join their Discord. For a project to have lasting liquidity, artistic value, and a strong community, broad participation from investors and collectors is essential.

NFT Art Theft Scams

Fake NFT scams are on the rise, and so is NFT art theft. Scammers copy artists’ works, mint them as NFTs, and sell them to buyers who believe they are purchasing originals. These scams harm both the original creators and buyers, who end up with worthless tokens.

DeviantArt, a leading online art community with over 70 million members and more than 50 trillion artworks, has seen a surge in artist theft reports. DeviantArt has released tools to monitor public blockchains and third-party marketplaces, warning members about suspected NFT art scams. Since rolling out these features, over 50,000 alerts have been sent regarding potential NFT violations.

Minting artwork as an NFT does not equal owning its intellectual property. Thanks to user-friendly tools like OpenSea, anyone can turn images into NFTs. Scammers can easily steal artwork, create fake OpenSea accounts, and sell fraudulent NFTs. If the community discovers the scam, your NFT becomes worthless—and there is no way to recover the lost funds.

Thoroughly research any NFT before purchasing. On OpenSea and other platforms, a blue checkmark next to an artist’s profile photo signifies verification. Use Twitter, websites, and other social channels to verify the creator. Contact the artist directly to confirm authorship and profile authenticity. Leverage Discord channels for additional community input.

Phishing Scams

First-time NFT buyers must set up a crypto asset wallet. MetaMask is one of the most popular Ethereum wallets for NFT collection.

Recently, MetaMask users have been targeted by phishing scams using fake ads to solicit private wallet keys and 12-word seed phrases. Attempts to steal security information don’t stop there—malicious popups featuring fake NFTs also appear on Telegram, Discord, and other public forums.

Phishing attacks aim to steal your personal information and drain your digital wallet. Ozzy Osbourne’s “CryptoBatz” project was targeted just two days after its token launch, with supporters falling victim to fake NFT phishing scams via links posted on the project’s official Twitter.

To protect yourself, guard your personal information carefully. Your seed phrase is required for wallet backup or restoration—never enter it into any popup, including MetaMask notifications. Only conduct crypto transactions on verified websites and never use popups, links, or email requests for this purpose.

Never share your seed phrase with anyone. It gives full wallet access, and if compromised, the loss cannot be undone.

Fake Crypto Asset Influencer Scams

NFTs gained traction through celebrity endorsements, with stars profiting in various ways. But because NFT trading is online, the average person has limited insight into project marketing. These scams involve fake endorsements where supposed “brand ambassadors” are not truly involved. By the time the public realizes, many may have already lost money.

In recent years, social media buzz surrounded rapper 6ix9ine’s NFT Trollz collection. The project claimed NFT holders would earn royalties from avatar creation and that 5% of each trade would return to the original Trollz token owner.

But doubts about legitimacy soon arose. NFT Trollz claimed it would donate $100,000 to charity, but many buyers said this never happened. Despite requests, no royalties were distributed, and none of the promised charitable work ever began.

To avoid such scams, do your due diligence. Is the celebrity endorsement real? Can the project deliver on its promises? Always seek official confirmation.

Auction Scams

Bidding scams are widespread in secondary NFT markets. These occur when someone resells an NFT and a bidder tries to switch the cryptocurrency being used. This is a major warning sign.

For example, you might list an NFT for 5 Ethereum, but a bidder changes the currency to offer $5 worth of crypto instead. Obviously, $5 is not equivalent to 5 Ethereum. This scam preys on sellers not paying close attention.

Always double-check which currency is being used and reject any bid below your minimum price. Never finalize a transaction without verifying both the currency and amount.

Scam Sites

If your NFTs vanish right after purchase, you’re likely dealing with a scam site. This usually happens when the blockchain contract doesn’t correspond to the actual artwork. On platforms like OpenSea, original art is sold using cryptocurrencies like Ethereum through smart contracts.

Smart contracts are what get minted on the blockchain, but their content doesn’t include the asset itself. NFTs only certify asset ownership—the asset can be anything. This loophole allows scam sites to take advantage of buyers.

Always make sure any centralized platform you use is reputable. Don’t end up purchasing just a link to an image. Anything stored at a URL can be changed at any time, leaving you with nothing.

When buying NFTs, protect yourself by ensuring you’re actually acquiring a tangible or digital asset—such as a JPEG, MP3, or PDF. Choose trustworthy platforms and always confirm the underlying asset’s existence.

Technical Support Scams

Unlike other fake NFT scams, technical support scams are very straightforward. Here, scammers pose as customer service agents for various NFT projects, attempting to contact you directly to extract sensitive information.

Most of these scams occur on Discord, Telegram, or Reddit—popular forums among crypto enthusiasts. Scammers pretend to resolve technical issues and ask for your wallet’s security phrase or private key. Giving up your security phrase means losing all assets in your wallet.

If you receive a direct message from someone claiming to be a project founder, be extremely skeptical. Most NFT projects won’t contact users directly through Discord or Telegram. Authentic support always goes through official channels.

Exercise Extreme Caution When Purchasing NFTs

No one wants to miss out on revolutionary ideas—hence the widespread enthusiasm for blockchain and NFTs. Everyone’s eager to catch the next big opportunity.

Crypto assets are real, but scammers know many people are driven by dreams of quick wealth. They exploit that instinct, using various scams to prey on NFT marketplace participants.

You can avoid becoming a victim by staying vigilant. Only buy when you have reliable information, always research the project, and keep your information secure. Sticking to these core principles will help you steer clear of NFT scams.

FAQ

What are the most common NFT scam tactics?

Common NFT scams include impersonating famous creators to sell fakes, phishing for credentials, fake airdrops, rug pulls (where project operators vanish with funds), and investment scams promising high returns.

What are rug pulls and “rug-rug” scams? Are they common in NFT projects?

Rug pulls occur when NFT project developers disappear with investor funds—a widespread scam in the NFT space. Always verify a project’s credibility before investing.

How can you protect yourself from fake or counterfeit NFT scams?

Always confirm NFT authenticity through official sources and check token legitimacy on the blockchain. Use trusted marketplaces, verify creator wallet addresses, and rely on official project information.

How do NFT scammers use fake Discord servers or SN snapshots?

Scammers create fake Discord servers or SN accounts to gain trust and trick victims into sharing private keys or wallet info. Never respond to unsolicited messages and always verify official channels.

How can you avoid falling victim to smart contract vulnerabilities in NFT purchases?

Use only official platforms and verify seller credibility. Always have smart contracts audited by experts and avoid unverified projects.

If you fall victim to an NFT scam, can you report it or recover your funds?

If scammed, contact the platform immediately and provide evidence. Report the incident to law enforcement and consult professional legal services. Blockchain transaction tracing may also be possible in some cases.

What are the hallmarks of NFT scams involving impersonation of celebrities or influencers?

Scams impersonating celebrities typically feature sudden high offers, excessive flattery, and urgent messages. These tactics pressure victims to act fast—be wary of messages from unverified accounts. Direct messages and social media outreach are common methods.

How do whitelist and giveaway scams work, and how can you prevent them?

Whitelist scams impersonate legitimate projects to steal personal information. Giveaway scams pose as free token offers but demand private keys or wallet access. Always access projects via official sites and never share confidential information.