FBI Warns Users About NFT Scams

The Federal Bureau of Investigation (FBI) has issued a Public Service Announcement (PSA) warning users about non-fungible token (NFT) scams involving criminals impersonating developers of renowned projects. The criminals hijack accounts of significant NFT projects or create almost identical social media accounts to target NFT-interested users.

Criminals offer fake collections of NFTs on social media, claiming they are associated with big NFT projects.
They use phrases like “limited supply” and “surprise” to create urgency.
Fake pages linked in the offers include smart contracts that steal funds and NFTs from users’ wallets.
Stolen funds and NFTs are mixed to hide their final destination.

Recommendations to Avoid Being Scammed

The FBI provides several recommendations to help users avoid falling victim to NFT scams:

Verify if the NFT project has previously offered similar opportunities or has declared they will never do so.
Check the authenticity of social media accounts promoting the offers. Look for discrepancies in spelling, account history, screen name, followers, or creation date.
Review the linked websites and ensure they correspond to the legitimate project without spelling issues or other discrepancies.

In March, cryptocurrency-linked investment fraud increased by 183%, causing a significant rise in the number of victims and financial losses.

Hot Take

As the popularity of NFTs continues to rise, so does the risk of scams. It’s crucial for crypto readers to stay vigilant and follow the FBI’s recommendations to protect themselves from falling prey to these fraudulent schemes. By verifying the legitimacy of offers and conducting thorough research, you can avoid becoming a victim and safeguard your funds and NFT holdings.