NFT scams: How to spot them and stay clear

cnbctv18.com:

A lot has been written about scams and frauds in the cryptocurrency space. But with limited credible information and no regulations, the crypto market continues to be a hotspot of dubious activity.

A Chainalysis report recently highlighted that Indians visited crypto scam sites over nine million times in 2021. Crypto scamsters have also started casting their nets wider and the latest to get trapped are investors in non-fungible tokens (NFTs).Owning a digital piece of art or music is exciting, but losing hard-earned money is not.

So, it may be time to keep aside the fear of missing out on the NFT mania and take a look at our quick guide on spotting and avoiding these scams.Phishing and fake NFT site scamsThe nascent NFT market has multiple websites and marketplaces. Many of these sites don’t have the brand recognition that popular websites for physical goods like Amazon have built over many years.

And some of these NFT marketplaces are phishing sites where the scamsters create what looks like an authentic website to dupe visitors into sharing confidential details like their crypto wallet private key.Once they get your private wallet information, they can steal all the cryptocurrencies you have stored in the wallet. Many of these sites also use attractive looking pop-ups offering discounts and freebies to lure people in.What are some easy ways to avoid these NFT scams?Never enter any personal information on pop-ups on any NFT websiteCheck if the contact address of the NFT aligns with that from its creator’s websiteUse online tools line ScamAdviser and Trend Micro Check to see if the NFT website is genuineRug-pull and pump-and-dump schemesThese are the most common scams that have grown alongside the rising craze for