The 7 Most Common NFT Scams

The Reality of Cryptocurrency Scams

Let's start by facing an uncomfortable truth. Just as with other trends in the blockchain space, cryptocurrency scams are nothing new. Where there's profit, illegal activity inevitably follows.

Among blockchain-based innovations, NFTs have made the most successful leap into the mainstream. In recent years, the number of NFT buyers and sellers has reached about 280,000, with around 185,000 original wallets created. Many of these users are new to crypto, making them particularly vulnerable to scams.

At the start of the past few years, global NFT sales surged past $4 billion, while Google searches for "NFT scam" hit an all-time high. Unfortunately, fraud is a persistent risk in any market. The fact that nearly $14 billion is lost annually to crypto scams underscores the gravity of the issue.

It's crucial to understand that owning an NFT with an image does not mean you own the image itself. You can't duplicate or commercially use it. Instead, you own a record of the transaction on the blockchain. Because of this, regulating the NFT market is much harder than regulating the traditional art market.

NFTs can support digital artists by creating scarcity and enabling buyers to own truly unique digital files. However, blockchain transactions still carry resource costs and there are countless scams to beware of. By understanding these schemes and learning how they work, you can better protect yourself.

Common NFT Scams

One of the most infamous NFT scams in recent years was the "Evolved Apes" collection of 10,000 tokens. This fake NFT project was a textbook example for the industry. Cartoon ape designs—following the success of Bored Ape Yacht Club—became especially prevalent in NFTs.

Buyers received unique ape designs and were promised a blockchain fighting game where apes could battle, with winners earning crypto rewards. The NFTs were said to fund the game's development. But the developer, using the pseudonym "Evil Ape," disappeared right after the NFT sales, taking 798 ETH (around $2.7 million at the time). Buyers were left with no options. The Evolved Apes game never existed, and those who bought the fake NFTs only got JPGs as costly mementos.

Another notorious scam was "Mercenary," a medieval-themed NFT game with play-to-earn features and a new crypto token, "Mercenary Gold." In recent years, Mercenary's scammers advertised on crypto news sites and Twitter to draw interest—but it was all a ruse. The criminals behind Mercenary Gold ran off with at least $760,000 through this NFT scam.

Ape Scam, Again

Big Daddy Ape Club was a parody of the Bored Ape Yacht Club and seemed like a more successful project. It created the illusion that celebrities like Jimmy Fallon and Paris Hilton were interested in the Bored Ape Club, which may have convinced some people. In reality, none of these celebrities supported Big Daddy Ape Club.

The scammers behind Big Daddy Ape Club encouraged customers to mint fake NFTs at a premium price of 1 Solana (about $135 at the time). Ultimately, buyers couldn't mint the NFTs, but the Solana fees were deducted anyway. This scam targeted over 9,041 people and stole more than $1.3 million.

NFT Pump-and-Dump Schemes

Sadly, pump-and-dump schemes have become almost predictable in the crypto and NFT markets. A pump-and-dump is when a group buys up NFTs or tokens to artificially drive up the price, then sells off their holdings at the peak, leaving others with worthless assets.

Wash trading—where the same person buys and sells assets to themselves—is also common in crypto and can inflate prices. NFT projects have faced criticism for pump-and-dump tactics. For example, The Athletic reported that SoRare NFT soccer team members bought NFTs to artificially boost interest and prices.

Be especially careful with large NFT projects. One of the first NFT applications, CryptoKitties, ran on Ethereum and became hugely popular after its launch. One of the most sought-after cats sold for $155,000 worth of ETH, but within six months its value fell by 95%.

So, how can you avoid fake NFT project scams? Start by checking the project's history and wallet records. On OpenSea or any NFT marketplace, you can review transaction histories and the total number of buyers. EtherScan allows you to view every transaction on the Ethereum blockchain.

Also, follow the project's social media—check their Twitter, join their Discord. To ensure good liquidity, artistic value, and a lasting community, projects need participation from many investors and collectors.

NFT Theft

Fake NFT scams are rapidly increasing, and reports of NFT theft are also on the rise. Scammers copy artists' work, mint it as NFTs, and sell it to unsuspecting buyers as originals.

DeviantArt, a massive online community with over 70 million members and 50 trillion artworks, has seen many artists report theft. The platform released new tools to scan public blockchains and third-party marketplaces, warning users attempting NFT art scams. Over the past few years, more than 50,000 alerts have been issued for potential NFT violations.

Remember, minting artwork as an NFT isn't the same as owning the intellectual property. OpenSea's user-friendly software allows anyone to easily mint images or photos as NFTs. Scammers can steal artists' work, create fake OpenSea accounts, and sell counterfeit art. If the community exposes the scam, your NFT becomes worthless—and there's no way to get your money back.

Always research before buying NFTs. On OpenSea or other NFT marketplaces, a blue checkmark next to an artist's profile photo means the artist is verified. Use Twitter, websites, and other social media to find and verify the artist. Ask them directly if the work is theirs and if they have the correct profile. Use Discord channels to gather more information from the community.

Phishing Scams

To buy your first NFT, you'll need a crypto wallet. MetaMask is the most popular Ethereum wallet for NFT collectors.

MetaMask users have recently been targeted by phishing scams—fake ads requesting private wallet keys and 12-word security phrases. But phishing isn't limited to this. Malicious NFT pop-ups also appear on Telegram, Discord, and other public forums.

Phishing can lead to your personal information being stolen and your digital wallet drained. Ozzy Osbourne's CryptoBatz NFT project, which minted 9,666 digital bats, fell victim to such an attack. Just two days after launch, supporters were targeted by a fake NFT phishing scam. The scam drained crypto from users' wallets using a link from the project's official Twitter account.

How can you protect yourself? Keep all your personal information secure. You'll need your seed phrase to create a hardware backup or restore your wallet. Never enter information into MetaMask pop-ups or any other pop-up. Always use verified websites for crypto transactions, and never trust pop-ups, links, or emails. Never share your seed phrase with anyone.

Fake Crypto Influencers

NFTs gained traction thanks to endorsements from celebrities, who benefited in various ways. But because NFT transactions happen online, public information about project marketing is limited. These scams often involve fake endorsements—so-called brand ambassadors who aren't actually involved. By the time the public realizes the truth, many people may have already lost money.

In recent years, notorious rapper 6ix9ine's NFT Trollz collection made headlines on social media. The project promised that creating an avatar would earn NFT holders royalties, with 5% of each transaction returned to the original Trollz token owner. But doubts soon emerged. NFT Trollz claimed it would donate $100,000 to charities, but many buyers reported this never happened. Most buyers received no royalties, and none of the promised charity work began.

To avoid such scams, thoroughly research the project. Is the celebrity endorsement real? Can the project deliver on its promises? Always investigate these questions carefully.

Auction Scams

Bidding scams are widespread on secondary markets. They occur when someone tries to resell an NFT they've purchased. After you list your NFT for sale, a bidder may attempt to change the cryptocurrency used. This is a red flag—$5 and 5 BTC are not the same. Stay alert.

Always double-check the currency and reject offers below your minimum. Carefully review every transaction term on secondary markets, and don't hesitate to cancel if anything seems suspicious.

Scam Websites

Scam websites can make NFTs disappear right after purchase. This happens when the blockchain contract doesn't match the actual artwork. On platforms like OpenSea, you upload original art, which is then purchased with crypto like Ethereum—creating a smart contract.

The smart contract is what's minted on the blockchain—not the content itself. NFTs only refer to asset ownership, regardless of what the asset is.

So, always confirm that any centralized platform you use is trustworthy. Don't end up buying just a link to an image—URLs can change, and buyers can be left with nothing. When buying NFTs, make sure you actually own a tangible or digital asset, like a JPEG, MP3, or PDF, to avoid getting scammed.

Technical Support Scams

This scam is much simpler than most fake NFT schemes. Here, scammers pretend to be customer support for NFT projects, reaching out to extract confidential information. Many of these scams happen on Discord, Telegram, or Reddit—forums popular with crypto enthusiasts. Sharing your wallet's security phrase means losing all your assets.

If you receive a direct message from a project founder, be skeptical. Most NFT projects never use private messages on Discord or Telegram to reach users. Official support communicates in public channels and never asks for sensitive information through private messages.

Be Extremely Cautious When Buying NFTs

No one wants to miss out on the next big innovation. That's why blockchain and NFTs have captured so much interest—people don't want to be left behind.

Crypto assets are real, but scammers know that many hope to strike it rich. They exploit this instinct and use every trick possible to profit from NFT marketplace participants.

You can avoid scams by staying vigilant. Only make purchases when you have solid information. Always research the project, and keep your information secure. By following these fundamentals, you can trade safely in the NFT market and protect yourself from scams.

FAQ

What are the main types of NFT scams?

The most common NFT scams include fake marketplaces, counterfeit NFTs, unauthorized transfers, fraudulent project investments, phishing, pump-and-dump schemes, and impersonation of celebrities.

How can you spot a fake NFT project?

Review the official website and whitepaper, verify ties to reputable artists or brands, check for transparency, project history, and community engagement, and examine its reputation on trusted platforms.

How can you protect yourself from NFT scams?

Only buy from trusted sellers through official channels. Ignore suspicious links and messages, never share your private key, and keep your wallet secure at all times.

What is a rug pull? Is it common in NFTs?

A rug pull is when NFT project developers abandon the project and disappear after collecting investors' funds. Investors lose everything. It's one of the most notorious NFT market scams.

What are the signs of a fake NFT marketplace, and how do you avoid them?

Fake NFT marketplaces are platforms created for forgery or fraud. To avoid them, check the platform’s official URL, verify transaction records on the blockchain, and only use reputable platforms.

What should you do if you're scammed in an NFT investment?

If you’re a victim of NFT fraud, report it immediately to the trading platform and the police. Save transaction records and evidence, consult a professional, and pursue a refund claim.

What are whitelist and airdrop scams?

Whitelist scams trick users into giving up personal information or funds under the pretense of exclusive access. Airdrop scams promise free tokens but steal private keys or gas fees. Both are prevalent NFT scam tactics.

What are the key factors for choosing a trustworthy NFT project?

Review the project's roadmap, check the development team's track record, gauge community activity and social media transparency, and confirm whether the smart contract has been audited. Diligent verification helps you select reputable projects.