Seven Major NFT Scam Techniques

The State of Cryptocurrency Scams

In recent years, non-fungible tokens (NFTs) have attracted record-breaking capital and become part of the mainstream economic conversation. As the NFT market has grown rapidly, so have counterfeit NFTs and a surge in NFT-related scams. This trend isn’t surprising—economic booms often present both opportunities and risks.

NFT scams mirror the schemes seen during previous crypto bull markets. Unfortunately, many investors have become victims, with annual losses from cryptocurrency scams approaching $14 billion. This shocking figure underscores the seriousness of the problem and highlights the need for heightened vigilance.

However, there’s no need for panic if you can recognize scam tactics. Understanding how scams work and their common features is the first step to protecting your assets. Next, we’ll explore seven of the most common NFT scam tactics, analyze real-world cases, and help you build strong risk awareness to effectively protect your digital assets.

With this knowledge, you’ll be better prepared to identify potential risks and make smarter decisions when trading NFTs. Remember: prevention is always better than cure, and learning about scam tactics in advance is key to keeping your assets safe.

Why NFTs Have Become a Magnet for Scams

Let’s start with a fact many are reluctant to admit: scams in the blockchain space are nothing new. Simply put, where there’s profit, bad actors follow. So why does the NFT sector attract special attention for scams? Several factors are at play.

Among blockchain applications, NFTs have made perhaps the deepest inroads into the mainstream. In recent years, there have been around 280,000 NFT buyers and sellers, and over 185,000 newly created wallets. Many participants are newcomers to crypto, lacking sufficient understanding of digital asset trading and its risks—making them prime targets for scams.

In the early years, global NFT sales quickly surpassed the $4 billion mark. At the same time, Google searches for “NFT scam” hit historic highs—a sign of growing concern over market security. Unfortunately, no type of business is immune to scams, and NFTs are no exception.

It’s crucial to understand that buying an NFT that contains an image doesn’t mean you own the actual rights to that image. Buyers can’t simply copy or use the image for commercial purposes. In reality, you own a record of purchase on the blockchain, while others can also buy a record linked to the same image. This ambiguity in ownership creates opportunities for scammers.

This unique ownership model makes NFT markets harder to regulate than traditional art markets. In the conventional art world, stealing a Van Gogh painting brings serious legal consequences, and art dealers actively hunt for originals. High-end classical art circles are also smaller and tightly connected, making oversight easier.

NFT technology was created to help digital artists by establishing scarcity and letting buyers own truly unique digital files. However, resolving related challenges remains a major issue. Blockchain transactions have resource costs and must contend with constant fraud attempts. Only by thoroughly understanding these issues can we better protect ourselves.

Notorious NFT Scam Case Studies

The “Evolved Apes” project, launched in October a few years ago, is one of the most infamous NFT scams. This bogus NFT project displayed classic scam characteristics worth a closer look. The project featured 10,000 cartoon apes, riding on the popularity of Bored Ape Yacht Club and capitalizing on the NFT market’s monkey mania.

The project seemed well-designed: buyers received unique ape artwork, and the team promised a blockchain-based fighting game where apes could battle and winners could earn crypto rewards. NFT sale proceeds were supposed to fund this game, making the concept especially attractive at the time.

But the reality was a complete scam. The developer, using the pseudonym “Evil Ape,” disappeared as soon as the NFTs sold out—taking 798 ETH (about $2.7 million at the time) with him. Buyers were left helpless, unable to recover their funds or get any compensation. The promised Evolved Apes game never appeared, and investors were left with nothing but a JPG image as a reminder of their failed investment.

Another notorious scam was the “Mercenary” project—a medieval-themed NFT game that claimed to offer play-to-earn features and introduced a new token, “Mercenary Gold.” The project was promoted on Twitter and crypto news sites, drawing widespread attention.

But it was all a carefully orchestrated scam. The team behind Mercenary Gold swindled at least $760,000 through this NFT scheme and were suspected in several other scams. The project owners vanished from social media after the heist and remain missing. This case shows that even slick, professional-looking projects can conceal enormous risks.

Ape-Themed Scams Strike Again

The Big Daddy Ape Club was a copycat of the Bored Ape Yacht Club that, on the surface, looked like a potential hit. Scammers took advantage of celebrity buzz, falsely claiming that Jimmy Fallon and Paris Hilton were interested in Bored Ape Club. These fake celebrity endorsements may have fooled some investors, but in reality, none of these stars ever supported Big Daddy Ape Club.

The team behind Big Daddy Ape Club convinced customers to “mint” fake NFTs at a steep price of 1 Solana each—worth about $135 at the time, a significant amount for many investors. In the end, investors failed to mint any NFT and simply lost their Solana tokens as fees.

This NFT scam targeted more than 9,041 victims and stole over $1.3 million. Blockchain analytics site SolRarity found this was not the group’s first crypto scam. Based on wallet activity, the Big Daddy Ape Club team had likely pulled off at least three similar scams before. The existence of such repeat offenders is a reminder to stay alert with new projects.

NFT Pump-and-Dump Schemes

Sadly, pump-and-dump scams have become all too common—and predictable—in crypto and NFT markets. Here’s how they work: scammers coordinate to buy up a specific NFT or cryptocurrency, driving up its price artificially. Once the price peaks, they quickly cash out, leaving other investors holding worthless assets.

Wash trading—where a single party buys and sells assets to themselves—is rampant in crypto trading. This creates fake volume, pushing up prices. For naïve traders who believe prices will keep rising, or bargain-hunters who think they’re getting a deal, these manipulated assets are tempting. But they often end up buying at the top and taking heavy losses.

NFT projects face similar pump-and-dump suspicions. For example, sports media outlet The Athletic reported that team members of the SoRare NFTs soccer card project bought their own NFTs to boost market hype and prices. Even Beeple’s record-breaking digital art sale faced similar accusations, with industry insiders alleging the buyer “Metakovan” was funding a pump-and-dump scheme for their own B.20 token.

The danger of these scams is their subtlety. Ordinary investors can’t easily tell if price spikes are driven by real demand or manipulation. If you see an NFT project’s price suddenly soaring, stay calm, dig into the reasons behind the surge, and avoid becoming a victim of a pump-and-dump scheme.

How to Spot Suspicious NFT Projects

The early NFT project CryptoKitties is a cautionary tale. Launched on Ethereum in the late 2010s, it quickly went viral, with one cat selling for $155,000 in ETH—a shocking record at the time. But just six months later, prices for these NFTs had crashed by 95%, devastating late buyers.

So, how can you avoid falling into fake NFT projects? Here are some key strategies:

First, thoroughly review a project’s history and wallet transactions. On OpenSea or other NFT marketplaces, you can check a collection’s purchase records and total buyer count. Tools like EtherScan let you see all Ethereum transactions, including frequency, amounts, and holder distribution.

Second, actively follow project updates on social media. Track the official Twitter account, join their Discord, and observe the community’s engagement and discussion quality. A trustworthy project should have strong liquidity, real artistic value, and a vibrant, sustainable community—achieved only through genuine participation from investors and collectors.

Also, scrutinize the transparency of the project team. Legitimate projects usually disclose team details, development roadmaps, and a comprehensive whitepaper. If team members are anonymous or can’t provide clear plans, consider it a red flag. Remember: thorough research before investing is the best way to protect your assets.

NFT Theft and Copyright Infringement

Cases of counterfeit NFT scams are rising rapidly, and reports of NFT theft are climbing as well. Scammers copy artists’ original works, mint them as NFTs, and sell them to buyers who believe they’re purchasing genuine pieces. This kind of infringement harms creators and inflicts financial losses on buyers.

DeviantArt, a major online art community with over 70 million members and 50 trillion works, has seen many artists complain about stolen works. To address this, DeviantArt launched a new tool that scans public blockchains and third-party marketplaces, alerting members to possible counterfeit NFT scams. Since August a few years ago, the system has issued more than 50,000 NFT infringement alerts—showing the scale of the problem.

NFTs and Intellectual Property Rights

Investors need to grasp a critical point: minting an artwork as an NFT does not mean owning its intellectual property rights. Platforms like OpenSea make it easy for anyone to turn images into NFTs. Scammers exploit this by stealing artists’ works, creating fake OpenSea accounts, and selling fake art.

If the community uncovers the scam, your NFT may become worthless. Worse, you’ll have almost no way to recover lost funds. Blockchain transactions are irreversible; once completed, they’re nearly impossible to cancel or refund.

Always investigate thoroughly before buying NFTs on any platform. On OpenSea and others, a blue checkmark by an artist’s profile photo signals platform verification. Use Twitter, official websites, and other social channels to confirm the artist’s identity.

The safest approach is to contact the artist directly to confirm the work’s authenticity and verify their profile. You can also use Discord channels to check with other community members. Remember: buying NFTs is like buying physical art—confirming authenticity is crucial to protecting your investment.

Protecting Against Phishing Scams

When buying your first NFT, you’ll need to create a crypto wallet. MetaMask is one of the most popular Ethereum wallets for NFT collectors—making it a prime target for scammers.

Recently, MetaMask users have been frequent targets of phishing scams, where fake ads solicit wallet private keys and 12-word seed phrases. But phishing attacks go far beyond this: fake NFT pop-ups appear on Telegram, Discord, and other forums, luring users to enter sensitive data.

Phishing can result in stolen personal information and compromised wallets. For example, Ozzy Osbourne’s CryptoBatz project was targeted just two days after launch, with supporters falling for fake NFT phishing attacks. These scams often use links posted from official project Twitter accounts—showing how cunning scammers can be.

So, how can you protect yourself?

The most important rule: strictly safeguard your personal information. Your seed phrase is essential for wallet recovery. Never enter any information into MetaMask pop-ups or any other pop-up. Always transact through verified official websites—never via pop-ups, links, or email.

Never, under any circumstances, share your seed phrase. No matter what someone claims—support staff, tech support, or project founder—anyone asking for your seed phrase or private key is a scammer. Legitimate platforms and projects will never request this information.

Fake Crypto Influencer Scams

The NFT boom owes much to celebrity endorsements. Many public figures profit from NFTs by investing, endorsing, or launching their own projects. But since NFT trading is mostly online, everyday investors have limited access to marketing information—creating opportunities for scammers.

These scams involve faking celebrity endorsements. Scammers invent stories that a celebrity is a brand ambassador or advisor, using their influence to lure investors. By the time people realize the “celebrity” has no real connection, many have already lost money.

In October a few years ago, rapper 6ix9ine’s NFT Trollz series drew wide social media attention. The project promised royalties to NFT holders, giving original owners 5% of every transaction—an enticing offer that attracted many investors.

But the project’s legitimacy was quickly questioned. NFT Trollz claimed it would donate $100,000 to charity, but many buyers never saw any proof. Worse, many who expected royalties never received them, and the promised charity never happened—proving these were empty promises.

To avoid such scams, thoroughly research every project. Does the celebrity truly support it? Check their official social media for related posts. Can the project deliver on its promises? Review the whitepaper, team information, and project history. If the team can’t provide evidence of celebrity involvement, it’s likely a scam. Legitimate celebrity endorsements come with official statements and formal agreements.

Bidding Scams

Bidding scams are frequent in the secondary NFT market, especially targeting sellers. The tactics are deceptive and demand caution.

When you list your NFT for sale, a bidder may try to change the cryptocurrency type. This is a clear red flag. Here’s how it works: you set a price of 5 BTC, but as the deal closes, the buyer quietly changes it to $5 or another much less valuable crypto.

This scam succeeds because sellers may overlook the final details in their excitement or haste. By the time they notice, the deal is done and losses are irretrievable. The gap between $5 and 5 BTC can be hundreds of thousands of dollars.

To prevent this scam, stay alert. Before confirming any transaction, check that the cryptocurrency matches your listing, verify the amount and units, and reject any lowball offers.

If a buyer asks to change transaction terms or currency, it’s almost certainly a scam. Legitimate buyers respect your terms and won’t ask for suspicious changes. Remember, it’s better to lose a deal than suffer a major loss from carelessness.

How to Identify Scam Websites

Scam websites are another common NFT fraud tactic. After a purchase, NFTs may vanish immediately. These scams succeed because blockchain smart contracts are separate from the actual art content.

When you upload original works to platforms like OpenSea, buyers use crypto such as Ethereum, forming a smart contract. Only the contract is recorded on the blockchain—the art itself isn’t. NFTs are essentially ownership certificates, and the asset may be any digital content.

This technical feature enables fraud. Dishonest platforms may only sell a link to an image—not the asset itself. The content at the URL can be altered or deleted at any time, leaving buyers with nothing. It’s like buying a treasure map to a treasure that doesn’t exist.

That’s why you must use trusted, centralized NFT platforms. Never buy NFTs that only provide an image link. Make sure you receive a tangible digital file—JPEG, MP3, or PDF—not just a potentially invalid link.

Choose platforms with strong reputations, long track records, and positive user reviews. These platforms offer better security and user protection. Always review the terms of service to know exactly what rights and content your NFT includes. Remember, choosing a reliable platform is your first line of defense against scams.

Tech Support Scams

Unlike some sophisticated NFT scams, tech support scams are straightforward but just as dangerous. Here, scammers impersonate customer service staff for NFT projects, seeking to contact potential victims.

The main strategy is to build trust and gradually extract sensitive personal information. Scammers usually operate on forums like Discord, Telegram, or Reddit, which are popular among crypto fans. These platforms’ real-time messaging and anonymity make them ideal for fraud.

Scammers typically send direct messages claiming they found issues with your account or offer “special help.” They act highly professional and eager to help, aiming to lower your guard. Once you respond, they’ll try to coax you into revealing sensitive data, especially your wallet’s seed phrase.

Here’s the key: giving your wallet’s seed phrase to anyone is like handing over all your assets. The seed phrase is the master key; whoever has it controls all your digital assets—including the power to transfer, sell, or destroy them.

If you receive direct messages from someone claiming to be a project founder or team member, be extremely skeptical. Legitimate NFT projects almost never reach out directly on Discord or Telegram. Official support requires submitting issues through public channels, not private messages.

Follow these rules: never share your seed phrase or private key; be wary of unsolicited “customer service”; seek help only through official website channels; and always verify identities through multiple channels before sharing information. Protecting your sensitive information protects all your assets.

A Cautious Approach to NFT Investing

No one wants to miss out on revolutionary investment opportunities. That’s why blockchain and NFTs draw so much attention. The fear of missing out on the next big wealth wave drives ever more investors into the NFT market.

Crypto assets do have real value—this is indisputable. But scammers know many people are chasing overnight riches. They design countless scams, exploiting greed and fear, to profit from NFT market participants. These range from simple phishing to complex Ponzi schemes.

Fortunately, scams can be recognized and avoided. The key is developing the right investment mindset and risk awareness. First, always stay alert. Don’t be swayed by short-term price spikes or hype—any project promising quick riches should raise suspicion.

Second, never buy unless you fully understand what you’re getting into. Take the time and effort to do your own research. Don’t rush because of FOMO; truly valuable projects won’t disappear if you spend a few extra days investigating.

Third, thoroughly vet each project. This means checking the team’s identities, reading the whitepaper, understanding the tokenomics, gauging community engagement, and verifying partnerships. Use blockchain explorers for transaction histories and seek out reviews and experience reports on social media.

Finally, keep your information secure. Use strong passwords, enable two-factor authentication, store large assets in hardware wallets, and regularly back up critical data. Remember, in the crypto world, you are your own asset guardian—there is no central authority to protect you from loss.

In short, the NFT market is full of opportunities but also risks. By learning to spot scams, staying cautious, researching thoroughly, and keeping your information secure, you can greatly reduce your risk of becoming a victim. Remember, investing should never be gambling—it should be driven by information and rational judgment. In this fast-changing space, knowledge and vigilance are your best protection.

FAQ

What are the seven most common NFT scam tactics?

The top seven NFT scam tactics are: fake marketplaces, counterfeit NFTs, unauthorized transfers, scam investment projects, phishing scams, pump-and-dump schemes, and impersonation of celebrities.

How can you spot fake NFT projects and scam websites?

Check the official website and whitepaper, verify connections with reputable artists or brands, assess project transparency, track record, and community engagement, and review the reputation on mainstream platforms.

What security risks should you watch for when buying NFTs?

Verify contract addresses to avoid phishing sites; check the background and reputation of the project team and community; be wary of false promises and high-return claims; use hardware wallets to secure assets; never click unknown links; carefully review all transaction details before confirming.

What should you do if you’re a victim of an NFT scam, and how can you report it?

Immediately stop trading and save all transaction records and chat logs. Report the scammer to local law enforcement and relevant regulators. Early reporting helps track down criminal activity and prevents further harm.

What are the technical differences between fake and real NFT transactions?

Authentic NFT transactions have clear on-chain ownership and transaction history, verifiable via blockchain explorers. Fake NFTs lack verifiable on-chain records and may not have legitimate contract addresses, making full transaction tracking impossible.

How do NFT floor price manipulation and pump-and-dump scams work?

Scammers use fake publicity to artificially pump NFT prices, luring investors to buy in, then the team abruptly dumps or disappears, causing a price crash. They exploit weak oversight, FOMO, and misinformation for profit.

How can you protect your wallet’s private key to prevent NFT theft?

Never disclose your private key; use hardware wallets or cold storage. Keep your key stored securely, back it up and encrypt it regularly. Enable two-factor authentication, carefully check transaction addresses, and beware of phishing scams.