Study Highlights the Most Common NFT Scams Amid the Current Mainstream Hype – Security Bitcoin News


Study Highlights the Most Common NFT Scams Amid the Current Mainstream Hype – Security Bitcoin News

As NFTs become a global phenomenon due to their widespread use, there are also concerns about an increase in related fraudulent activity. A recent study has highlighted the most common scams that spread online.

The number of suspicious domains with the word NFT increased by 250% in March 2021

According to a study by security experts Bolster, replicas are on the rise, with recent figures showing an increase in domain registrations.

Scammers are actively creating copy shops with suspicious looking domains with names like rarible, opensea and audious.

According to the study, by March 2021, these domain registrations have increased by almost 300% compared to the previous months.

According to Bolster, replica shops or counterfeit copies often use the same design as legitimate NFT shops and even copy their logos.

Similarly, fake NFT stores are considered a variant of replica NFT stores, the only difference being that the former do not use the design of an existing legitimate store. Fake stores, however, sell NFTs that don’t even exist.

Also, the figures are not optimistic that the upward steam of NFT fake shops will stop. As of March 2021, the number of suspicious domain registrations containing the word nft was 17,118, an increase of 250% from February 2021.

Bolster points to other types of fraud associated with NFTs, such as. B. the sale of fake NFTs posing as original works of art. Researchers have been looking into this question:

If you’ve been following NFT for the past few weeks, you’re aware of the bank artwork that sold for $1 million in crypto form on the NFT markets. I don’t want to get into copyright and trademark law, but this serves as a harbinger of things to come. Fake, real world inspired art/content will quickly become a problem. Users should be careful what they buy or bid on. On these online marketplaces, it is difficult to verify the seller.

The upward trend in fraud is far from over

As is common in the cryptocurrency industry, the NFT landscape is not exempt from dealing with fake gifs or bird droppings. Bolster says they identify thousands of such scams every month. Telegrams, Facebook, Twitter and Discord are the most common ways to spread fake gifts.

In the same vein, scammers are using social media to pretend to be brands along with the NFT. Bolster gave the example of several active fake communities on Telegram.

But the company doesn’t think the trend of increasing NFT fraud will abate anytime soon:

This scam is becoming increasingly complex and sophisticated. Scammers will continue to innovate to trap users. Not only in NFT, but also in online shopping, buyers need to know where and to whom they are giving their credit card or bank account information.

What do you think of the results of the study? Let us know your comments in the section below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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Emilia James
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