When 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, counterfeit NFTs, and pump-and-dumps.

The year 2021 was a breakthrough for non-fungible tokens (NFTs). But when something becomes popular like decentralized finance (DeFi) and the newer version of the Web called Web3, there are also risks involved.

Follow the money is a piece of advice you don’t have to give hackers twice. Last year, hackers took home $14 billion from crypto-related hacks, and yet crypto-related crime figures rose 79%; and the risk is not over yet. But how do NFT traders protect themselves from being scammed? First of all, find out. By understanding the most common NFT scams, you can protect your tokens.

The most important thing to note is that NFT pump-and-dumps are bad news. NFT fraudsters will use hollow information to increase the minimum price (representation of the lowest price of an item, updated in real time) of an NFT of interest. When they are successful in their tactics, they sell their items and leave others empty-handed. Also, a common trick is the tech support scam. When you are a Telegram or Discord user, you probably see cryptocurrency scams happening right under your nose.

This phishing scam is not at all obvious. Scammers use fake pop-ups to link to normal-looking pages, like your wallet. Or first-time buyers are having a hard time closing the deal and accept an offer for help investing in NFTs. The digitally disguised scammer requests your personal information, which they use to steal all of your assets.

The third common NFT scam is no stranger to the world of intellectual property. The artists work hard on their original designs. It takes many hours to establish an NFT collection, so when someone else copies them, it’s like biting into a sour apple. Scammers take the artist’s work and turn it into an NFT. Buyers will believe that they are investing in an original work of art and will make high value offers.

This post How to avoid becoming a victim

was published first on https://cointelegraph.com/explained/nft-scams-how-to-avoid-becoming-a-victim


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