Seven Common NFT Scam Tactics

The Reality of Crypto Asset Scams

Non-fungible tokens (NFTs) have attracted unprecedented capital inflows in recent years, establishing themselves as a widely recognized term in mainstream finance. However, this rapid expansion has brought a surge in counterfeit NFTs and NFT-related scams. Economic booms create new opportunities, but they also introduce significant challenges.

NFT scams share the same fundamental structure as the crypto asset frauds that proliferated during the peak periods of Bitcoin and altcoins. Unfortunately, many investors have fallen victim to these schemes, and statistics show that nearly $14 billion is lost to crypto-related scams every year.

As blockchain technology advances, scammers continually refine their methods. Still, by learning to recognize and understand these tactics, you can greatly reduce your risk. Always keep in mind: where there’s profit, illegal activity is never far behind. Exercising caution is essential.

The number of NFT market participants has grown dramatically over the past few years. Research shows there are approximately 280,000 active NFT buyers and sellers, with about 185,000 newly created wallets. Many of these newcomers are inexperienced in crypto and therefore more susceptible to scams.

It’s especially important to recognize that purchasing an NFT with an image does not grant you the actual copyright to that image. All you receive is a blockchain record of the purchase—not the right to reproduce or commercially exploit the image. This makes it extremely difficult to regulate the NFT market the same way as the traditional art world.

Even so, NFTs hold innovative value by creating scarcity and enabling digital artists to sell ownership of unique digital files to buyers. Understanding this distinction is your first line of defense against scams.

Common NFT Scam Techniques

One of the most infamous NFT scams is the "Evolved Apes" project. The team sold 10,000 unique ape-themed NFTs and claimed they would develop a blockchain-based fighting game, with cryptocurrency rewards for winners.

This project followed a classic NFT scam pattern: raising funds through NFT sales under the guise of developing a game, while having no intention to deliver on the promise.

The developer, under the alias "Evil Ape," disappeared immediately after the NFT sale, taking 798 ETH (about $2.7 million at the time) with them. This type of scam, called a "rug pull," is a recurring issue in the NFT space.

Another notorious example is the "Mercenary" project, a medieval-themed NFT game featuring play-to-earn mechanics and its own token, "Mercenary Gold." The fraudsters promoted the project through aggressive ad campaigns on Twitter and crypto news sites, drawing substantial investor attention.

All of it was a sham. The scammers behind Mercenary Gold absconded with at least $760,000, abandoning the project entirely. These cases demonstrate that flashy marketing and media coverage do not guarantee project legitimacy.

Scams by Imitation Projects

Big Daddy Ape Club was launched as a parody of the successful Bored Ape Yacht Club. Scammers created fake ads suggesting endorsements from celebrities like Jimmy Fallon and Paris Hilton. In reality, none of those celebrities actually supported Big Daddy Ape Club.

The scammers persuaded buyers to mint fake NFTs at a premium price of 1 Solana—worth about $135 at the time. Many buyers sent payment but were unable to mint an NFT, losing their Solana in the process.

This NFT scam targeted more than 9,041 victims and stole over $1.3 million. The case sent shockwaves through the NFT community as a textbook example of scams using popular project imitations and fake celebrity endorsements.

NFT Pump-and-Dump Schemes

Pump-and-dump schemes are a serious threat across both crypto and NFT markets. In these schemes, groups buy up large quantities of a specific NFT or token to artificially inflate its price. Once prices spike, the scammers sell off, leaving other investors with worthless assets.

Wash trading—where the same entity buys and sells an asset to fake activity and boost prices—is often used. Despite blockchain transparency, this kind of manipulation is hard to spot.

For example, The Athletic reported that members of the SoRare NFT soccer platform bought NFTs to drive up prices. Such practices undermine market integrity and can inflict major losses on ordinary investors.

CryptoKitties, one of the earliest NFT applications, also illustrates extreme price swings. Deployed on Ethereum, it became an instant hit. One cat sold for $155,000 worth of ETH, only to lose 95% of its value within six months.

To protect yourself from fake NFT projects, take several key steps. First, scrutinize the project’s background and wallet transaction history. On platforms like OpenSea, you can check the trading history and number of buyers for a collection. EtherScan lets you track transactions on Ethereum in detail.

Monitor the project’s social media activity, too. Check the official Twitter account and join the Discord community to gauge real engagement and developer transparency. Reliable projects offer strong liquidity, artistic merit, and sustainable communities—attracting serious investors and collectors.

NFT Theft and Intellectual Property Infringement

NFT theft is a rapidly escalating problem. Scammers copy artists’ works without permission, mint them as NFTs, and sell them to buyers who believe they are authentic. These crimes harm both artists and collectors.

DeviantArt, one of the world’s largest online art communities with 70+ million members and 50 trillion artworks, has seen many artists report their works being minted and sold as NFTs without permission. In response, DeviantArt developed new tools to scan public blockchains and third-party marketplaces, warning users attempting NFT art scams. The system has already issued more than 50,000 alerts for potential violations.

It’s critical to understand that minting an artwork as an NFT is not the same as owning its intellectual property rights. User-friendly tools like OpenSea let anyone mint images or photos as NFTs, even without technical expertise.

This simplicity creates opportunities for scammers. They can steal art, set up fake OpenSea accounts, and sell stolen works as their own. If the community uncovers the fraud, the purchased NFTs become worthless.

Before buying from any marketplace, conduct thorough due diligence. On OpenSea and similar platforms, a blue checkmark (verification badge) next to the artist’s profile is an important sign of authenticity.

Also, verify the artist via Twitter, official websites, and other socials. When possible, contact the artist directly to confirm ownership and profile legitimacy. Use Discord channels to gather additional information from the community.

Phishing Scam Techniques

To buy NFTs, you first need a crypto wallet. MetaMask is the most widely used Ethereum wallet for NFT collectors. Its popularity makes it a top target for scammers.

Recently, MetaMask users have been targeted with sophisticated phishing scams—fake ads and websites that ask for private keys and 12-word seed phrases. Giving up this data can result in your wallet being completely drained.

Phishing isn’t limited to direct requests for credentials. Fraudulent NFT pop-ups can appear on Telegram, Discord, and other public crypto forums, often indistinguishable from legitimate ones.

For example, rock legend Ozzy Osbourne’s "CryptoBatz" project was hit by such an attack. Just two days after launch, supporters were targeted by fake NFT phishing scams. The scam drained crypto from users’ wallets and appeared to originate from the project’s official Twitter account—which had either been compromised or expertly spoofed.

To protect yourself, follow essential principles. Guard your personal data—especially your seed phrase—at all costs. This phrase is crucial for wallet backup and recovery.

Never enter information in MetaMask pop-ups or any unexpected pop-up. Always type the official website address directly into your browser, and never use sites accessed through links, emails, or pop-ups.

Most importantly, never share your seed phrase with anyone. No legitimate service or support team will ever ask for it.

Fake Crypto Influencer Scams

NFTs have exploded in popularity thanks to high-profile celebrity endorsements. These figures profit by investing in NFT projects or launching their own NFT collections. However, because NFT trading is online, the information available to public investors is limited.

Scams that exploit this information gap are called fake endorsement scams. Here, fraudsters claim a celebrity is backing a project when in fact they are not involved at all. By the time investors catch on, it’s often too late.

One example is rapper 6ix9ine’s NFT Trollz collection, which generated buzz on social media. The project promised royalties to NFT holders when avatars were created, with 5% of every transaction going back to the original token owner.

But questions about legitimacy surfaced immediately. NFT Trollz claimed it would donate $100,000 to charity, but no donations were ever made. Buyers demanding royalties got nothing, and none of the promised charity efforts materialized.

To avoid such traps, always thoroughly research any project. Confirm celebrity endorsements through their official social media. Critically assess whether the project’s promises are realistic and achievable.

Auction Scams

Bidding scams are very common on secondary NFT markets. These target sellers trying to resell NFTs. After you post an NFT for sale, a bidder may try to switch the transaction currency.

This is a major red flag. For example, if you list an NFT for 5 ETH, a buyer could switch the bid to BTC, but actually offer a currency worth only $5—not 5 BTC. Clearly, $5 is not equivalent to 5 BTC.

The scam relies on sellers failing to notice the currency switch before approving the sale—especially on complex platforms or when rushed.

To avoid this, double-check the currency before confirming any transaction. Be wary of bids much lower than your asking price, even if the currency appears correct, and reject suspicious offers when necessary.

Fraudulent Sites and Smart Contract Traps

When NFTs disappear immediately after purchase, it’s often the result of fraudulent sites exploiting blockchain architecture. On blockchains, smart contracts and the actual asset (artwork, etc.) are stored separately.

Uploading art to platforms like OpenSea allows buyers to purchase using cryptocurrencies such as Ethereum, and the transaction is recorded as a smart contract. However, the actual content (image, video, etc.) referenced by the NFT is not stored in the smart contract itself.

Most smart contracts only store a URL link to the asset. NFTs certify ownership, but not the asset itself. Scammers take advantage of this technical loophole.

Always make sure any centralized platform you use is trustworthy. Purchasing NFTs from unreliable or fraudulent sites could mean you’re only buying a link, which scammers can change or delete at any time—leaving you with nothing.

When buying NFTs, ensure you have genuine access to the underlying asset—whether a JPEG, MP3, or PDF file. Use reputable marketplaces and understand the technical details of the project to avoid this type of fraud.

Technical Support Scams

Unlike many other NFT scams, technical support scams are simple but highly effective. Here, scammers pose as customer service or technical support for NFT projects to establish trust.

The goal is to obtain sensitive personal information, especially your wallet seed phrase. These scams are common on Discord, Telegram, and Reddit—popular channels for crypto communities.

Scammers often reach out right after you post or ask a technical question, masquerading as helpful support. They’ll claim your seed phrase is needed to resolve the issue, but sharing it means losing all assets in your wallet.

The most important defense: be suspicious of any direct messages from project founders or support. Legitimate NFT projects rarely, if ever, DM users individually on Discord or Telegram.

If you need help, initiate contact yourself via official support channels or help desks. Never share your seed phrase or private keys with anyone under any circumstances.

Exercise Extreme Caution When Buying NFTs

Everyone wants to be part of the next big thing in technology or investment. That’s why blockchain and NFTs draw so much attention. Investors are driven by a fear of missing out on the next opportunity.

Crypto assets are real, and many have legitimate value. Still, scammers know how to prey on those hoping for overnight wealth. They exploit this human instinct with a range of NFT marketplace schemes.

You can avoid scams by sticking to a few key principles. First, maintain a cautious and skeptical mindset. The more enticing an opportunity seems, the more carefully you should evaluate it.

Only make a purchase once you’ve gathered all necessary information and are confident in the project’s credibility. Investigate the team’s background, community engagement, and whether the project’s roadmap is truly viable.

Above all, safeguard your personal and security information. Never share your seed phrase or private key, and keep them stored securely. By following these basic steps, you can substantially reduce your risk of falling victim to NFT scams.

FAQ

What are the seven most common NFT scam techniques?

Fake projects, rug pulls, phishing attacks, fake marketplaces, pump-and-dump schemes, smart contract exploits, and impersonation scams.

How can you spot a fake NFT project?

First, verify the official badge. Major projects almost always have a verified mark. Check the project’s official website, social channels, and reliable sources for information, and review transaction volume and activity to distinguish fakes.

What can you do to prevent NFT scams?

Use only trusted platforms, conduct thorough due diligence before trading, never share personal details or wallet passwords, and avoid suspicious transactions.

What is a rug pull, and how can you avoid it?

A rug pull is when developers secretly withdraw and run off with project funds. To guard against it, check for project transparency, reputable developers, smart contract audits, and locked liquidity.

How can you protect yourself from wallet connection scams when buying NFTs?

Always connect your wallet directly from the official website and use a trusted wallet app. Enable two-factor authentication, and never share personal information or your seed phrase.

How can you identify a fake NFT marketplace?

Check that the official URL is correct and look for verification badges. Confirm the project is certified by reliable sources and that operator information is clearly provided.

What should you do if you fall victim to an NFT scam?

Save all transaction evidence and promptly report the incident to authorities. Notify the relevant platform and avoid sharing further personal information. You may also want to consult a professional.

What are the characteristics of NFT scams impersonating celebrities?

These scams use advanced AI to create convincing fake ads, pitch investments on social media, and misuse celebrities’ names and images. They lure victims into group chats (e.g., on LINE) and extract money. Generative AI now enables realistic fake voices and videos, fueling a surge in these scams.