Scams, rug pulls, and catfishing have become increasingly problematic in the NFT community. Both new and seasoned collectors have been the subject of big and small losses.

Below is a list of the most common NFT scams, how to avoid them, and some useful tips on how to stay safe. The scams below are all from experiences that NFT community members have shared. There are always new ones coming out, so make sure to stay safe and be alert.

Discord DMs

Watch out for: Brand, artist, and influencer impersonators and fake invites. 

Avoid by: Never clicking on links regardless of their perceived legitimacy. Be weary of DMs from “friends” asking for money, or “announcements” from NFT projects (always check the group and ask in the group first). If you receive an odd message from someone you know, make sure it is them by checking their handle first.

Fake Twitter Personas

Watch out for: Fake influencer and brand profiles replicating original ones word for word. 

Avoid by: Double and triple checking if it is the real profile. These fake accounts will message you pretending to be up for a chat or asking for help and advice on something.

Fake Marketplaces & Brand Impersonators

Watch out for: Almost identical URL links of fake marketplaces; this is a classic NFT scam. Usually there is only a one-letter difference between the fake and real marketplace that is easy to miss . 

Suspicious-looking emails from big companies are another major red flag. These emails will look strikingly similar to the real deal, with minor link changes. 

Avoid by: Observing the links and email a few times before clicking on anything asking you for personal information such as a seed phrase or password.

Artist Impersonators

Watch out for: Stolen artworks. 

Avoid by: Checking if the artist is verified and/or has an active NFT community or presence in the NFT space. 

Pump & Dump & Rug Pulls

Watch out for: The pump and dump scheme is a classic in both crypto and NFTs. This scam involves a person or, most likely, a group of people, purchasing a large amount of NFTs to manipulate the market by artificially driving demand up. Once the value has gone up, the scammers dump all their assets and rake in a sweet profit, leaving everyone else with worthless NFTs and massive losses.

Rug pulls are essentially a form of pump and dump schemes, but they can be hard to spot as there might be a genuine community around it, but once the NFTs have been sold and the money taken, the devs will disappear. 

Avoid by: Check the transaction history. A genuine project should have a diverse range of buyers and not just a few buyers who are selling and re-selling. If you suspect you’re in a pump and dump project, try to get out as soon as possible.

Bidding Scams

Watch out for: False bids. So, you list your NFT for sale, and people bid on it, but here’s the catch – they bid in USDC. Instead of selling that sexy Bored Ape for 17 ETH, you end up selling it for 17 USDC.

A more recent NFT scam that popped up is people listing then immediately delisting and relisting with the decimal moved one place to the right.

Avoid by: Triple checking all parts of the transaction!

Catfishing

Watch out for: DMs prompting you to take some of action or sign up somewhere before they purchase your NFT. Catfishing may be particularly tempting for new artists, who haven’t sold anything yet, and someone comes with the promise of wanting to be their first buyer.

Avoid by: Blocking them and deleting them for good. Do not engage in any way!

Airdrops & Giveaways

Watch out for: “Free” airdrop messages popping up in Discord from a fake “verified” account of a well-known project or influencer. 

Avoid by: Never click on any messages like that unless you have checked and confirmed it is from a real account. 

There are many innovative scams, so make sure to never click on suspicious links or connect your wallet to an untrusted website, and never ever give away your seed phrase!