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How to avoid becoming a victim

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If you are an active NFT trader, you cannot avoid all the scams in the world of non-fungible tokens. The most common NFT scams are phishing, fake NFTs, and pump-and-dumps.

The year 2021 was a breakthrough for Nonfungible Tokens (NFTs). But when something becomes popular like decentralized finance (DeFi) and the latest version of the web called Web3, there are also risks associated with it.

Follow the money is advice you don’t need to give hackers twice. Last year, hackers took home $14 billion from crypto-related hacks, and yet the rate of cryptocurrency crime is up 79% — and the risk isn’t over yet. But how do NFT traders protect themselves from fraud? First of all, educate yourself. Understanding the most common NFT scams will help you keep your tokens safe.

Most importantly, NFT pump-and-dumps are bad news. NFT scammers use hollow information to inflate the reserve price (representation of the lowest price for an item, updated in real time) of an NFT that interests you. When they succeed in their tactics, they sell their items and leave others empty-handed. A common scam is also tech support scam. If you are a Telegram or Discord user, you probably see the crypto scams happening right under your nose.

This phishing scam is not obvious at all. Scammers use fake pop-ups to link to normal-looking pages like your wallet. Or first-time buyers are struggling to close the deal and they accept an offer to get help investing in NFTs. The digitally cloaked scammer asks for your personal information, which he uses to steal all your assets.

The third common NFT scam is no stranger to the intellectual property world. Artists work hard on their original designs. It takes many hours to build an NFT collection and having them copied by someone else is like biting a bullet. The scammers take the artist’s work and turn it into an NFT. Buyers will believe they are investing in an original work of art and will place quality bids.

https://cointelegraph.com/explained/nft-scams-how-to-avoid-becoming-a-victim How to avoid becoming a victim

Fry Electronics Team

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