How To Get Rid Of Scammed Out Of Your NFT

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How To Get Rid Of Scammed Out Of Your NFT

Scammers are everywhere and you will hear a lot about scams and fraud in every field. The cryptocurrency which has rapidly grown in the past few years is now attracting a huge number of investors. This quick and huge fondness for the crypto by the public opened a new field for scammers to scam. Faking the original sites and deceiving investors is all over the internet today. The new phenomenon that is now the center of scams is NFT. with the start of this year the global NFT sales hit the $4 billion mark. People around the world are ready to pay and already paying millions of dollars for NFT arts and collectibles. Investors are earning giant profits for their investments in NFT, which is attracting new investors towards it. Just to own a piece of digital art and music, people are visiting scam sites and losing their hard-earned money to online frauds. Due to no regulations, the market remains the place that attracts distrustful activities. But lack of facility towards these fraudulent activities does not mean we stop investing in the NFT. You can collect every bit of knowledge possible prior to buying any NFT art or music. In this article, we will make you aware of the different frauds that can happen to you while doing NFT and a few tips on how to avoid common crypto NFT scams.

What Is NFT?

What Is NFT?

The Non-Fungible Token mainly known as NFT is nothing but data added to digital peace of art that creates a unique signature. Because of being one of its kind the monetary value of it is decided by the people through auction/bid. It can be anything like an image, tweet, music, meme, or any digital item.

If you are a crypto nerd then you might be aware of the fact that Twitter CEO Jack Dorsey sold his first tweet as an NFT for $2.9 million dollars. Shocked right!

We understand that buying a tweet for $2.9 million dollars is totally insane, but this had actually happened and people all over the globe are buying such things for good fortune.

How Do NFT Works?

How Do NFT Works

Non-Fungible Token or NFT works on the blockchain system. A person who buys NFT gains the right to the unique digital token on the blockchain. In general, when you buy any NFT you do not buy the content per se but the rights to a unique token that connects your name to the digital artwork.

So, now you know what an NFT is and how it works, then let’s proceed to the different NFT scams one can face while buying them.

1. Fake NFT Sites (Phishing Sites)

Fake NFT Sites (Phishing Sites)

There are multiple NFT sites that are fake and are built to deceive the NFT buyers. These scam sites are built with the sole motive to dupe visitors into sharing confidential details like their crypto wallet private key. Once you share your all private wallet information the scammers can then able to steal everything from your wallet.

How to avoid NFT scams (phishing site scams)

You can avoid phishing site scams if you stop providing personal pieces of information on unknown NFT websites that pops-up on your social media. Always double-check the contact address of the NFT should align with that of its creator’s website too. You can investigate online about NFT websites if they are fake or not. Using legitimate wallet apps and browser extensions can be beneficial.

2. Giveaways / Airdrops

You might have heard of many Giveaways or airdrops on different social network sites. It is the best way to get the trick the buyer into a scam by the scammers. Disguising themselves as officials, scammers offer the buyer fake giveaways or airdrops and get all your wallet information to clear your cryptocurrency and NFT before giving you free assets.

How to avoid such NFT Scams

A few tips if you follow can save you from losing your hard-earned money always research about the entity that offering the giveaways or airdrops. Don t trust every offers they give.

3. Rugg-pull And Pump & Dump

Another kind of common and important scam that is spreading with the craze of cryptocurrency is Rug-pull and Pump and Dump scam. In this, to get the attention of investors scammers fake the promotion of new NFT projects and manipulate them to invest in the project. They create an atmosphere where everything loos so real that people start buying their fake NFT or currency which automatically leads to rising in price. Scammers take the advantage of that moment and cash out, even they pull out the currency from circulation.

How to prevent NFT scams (Rug-pull / Pump & Dump)

Check the price of the NFT in projects. Mostly scammers set the price for their fake NFT lower than the original so investors easily get ready to buy them, beware of scams. Do consult with other investors of the project before making any deal. Research as maximum as you can and collect information.

4. Bidding Scam

The main target in this type of scam is NFT sellers. Scammers change the cryptocurrency that you have listed for your NFT, from your preferred means of exchange to another lower value crypto secretly.

How to avoid such scams

To avoid bidding scams what the best you can do is never accept the lower bid than you expect. And as for the currency, double-checking is always beneficial.

5. Counterfeit or Plagiarized NFT

Fake copy runs better in the market everyone knows this and scammers are taking full advantage of this statement. There is multiple software available by using which anyone can turn any photo and image in NFT irrespective of the fact whether they own the right to that IP or not. Scammers counterfeit the artwork and list it for auction which makes the original NFT completely valueless.

How to avoid common crypto NFT

Adopt the habit of not clicking on links or attachments that are from unknown sources. Using a strong password always saves you. Protect your account by enabling two-factor authentication. Most legitimate NFT sellers are those with verified accounts, never forget to check that.

They say “Prevention is better than Cure” and you can’t cure the loss of NFT so it’s only prevention that you can do. So, be cautious while investing and selling your NFT in a world full of scams.

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