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NFT Scams in the UK Have Increased by 400% Between 2020 and 2021

Quick take:

  • The latest research shows a 400% increase in NFT scams in the UK between 2020 and 2021.
  • Common scams target NFT buyers and owners.

The NFT Club experts have compiled the latest data and put out a guide to help NFT investors stay cautious and safe from the surging NFT scams.

Phishing scams

Scammers target investors by producing phony adverts and requesting customers' private wallet keys or seed phrases over email, discord, telegram, and other public forums.

Scammers are also contacting people through Discord and Twitter, pretending to be from OpenSea or Metamask support. 

This is done to dupe customers into revealing their security phrase or send links to bogus customer support websites where they are prompted to enter their credentials. If you want technical assistance, always go to the official customer care websites.

Pump and dump

The term "pump and dump" is when a group of individuals buys a large number of NFTs to artificially inflate demand by circulating false information and reducing supply. 

When the asset's price has grown significantly, the fraudster “dumps” it and sells what they hold. This triggers a large price drop leaving investors who bought the NFTs with an asset worth considerably less.

Because the pricing of little-known NFTs is more readily manipulated, this sort of fraud frequently targets smaller projects and collections. 

Influencers and even well-known celebrities frequently promote schemes on social media, with legality surrounding this type of advertising being a hazy area.

Counterfeit NFTs

Artists are being ripped off by con artists who create clone collections and try to trick others into buying the wrong NFT. 

Minting an NFT is simple, anybody can upload a photo or image regardless of whether or not they hold the intellectual property rights to it. 

Scammers create phony OpenSea accounts in order to sell their forged NFTs to unsuspecting investors, leaving them with worthless assets.

The number of scams and the ways of approach by the scammers will keep evolving. As users, it's our responsibility to stay safe, cautious, and DYOR.

The information provided on DecentReviews does not constitute investment advice, financial advice, trading advice, or any other sort of advice. Do not treat any of the websites content as such. DecentReviews does not recommend that any cryptocurrency or blockchain asset should be bought, sold, or held by you. Conduct your own due diligence and consult your financial advisor before making any investment decisions.

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