The year 2021 will be remembered as a turning point for nonfungible tokens (NFTs).
However, there are hazards involved when something becomes popular, such as decentralized finance (Defi) and the newest version of the Web, Web3.
Hackers don’t need to be told twice to follow the money.
Hackers made $14 billion from cryptocurrency thefts last year, and cryptocurrency crime has surged by 79 percent this year — and the threat isn’t over yet.
Prevent becoming scam victims
You can’t avoid all the frauds in the realm of nonfungible tokens if you’re an active NFT trader. Phishing, counterfeit NFTs, and pump-and-dump schemes are the most typical NFT scams.
However, how can NFT traders prevent becoming scam victims?
To begin, educate yourself. You can get your money back by recognizing the most typical NFT frauds.
The most important thing to keep in mind is that pump-and-dump NFT methods are useless.
Scammers will increase the floor price (representation of the lowest price for an item, updated in real-time) of an NFT of your choice using bogus information.
When their efforts are successful, they sell their belongings and leave others empty-handed.
Technical support fraud is also a typical scam.
You’ve probably witnessed crypto scams right in front of your eyes if you use Telegram or Discord.
This phishing fraud is not at all obvious. Scammers use fake pop-ups to link to seemingly normal URLs, such as your wallet.
How to be safe from NFT scams?
There are occasions when you can’t do anything about stolen artwork.
The creator’s accounts, social media posts, and community may all be verified, of course.
As you would in any other case, do your homework.
It’s a good idea to keep a watch on the news coverage to avoid NFT scams. Also, improve your digital security by avoiding suspicious contact requests and strange pop-ups.
Users are becoming more aware of the risks associated with trading and how to protect their NFTs. If you already possess an NFT or plan to buy one or more, it’s vital to know how to prevent being a victim of an NFT scam.
As a user, you can take a number of actions to protect your assets from theft.
First and most important, you must understand what you are doing. Review the transaction history of the NFT you wish to acquire to avoid pump-and-dump schemes.
Also, find out how to contact the creator and do some research on them.
While we’re talking about phishing scams, keep in mind that your personal information is yours! Never hand over your wallet keys, and ignore any unexpected offers or contact requests.
It should go without saying that you should always use two-factor authentication to secure your accounts; it’s the very least you can do.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
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