The Seven Most Common NFT Scams

Cryptocurrency Scams: The Facts and the State of the NFT Market

In recent years, the non-fungible token (NFT) market has experienced explosive growth, drawing unprecedented capital. However, this economic boom has also fueled a surge in counterfeit NFTs and NFT-related scams. Where there’s financial opportunity, there’s inevitably a risk of fraud.

NFT scams mirror the structure of cryptocurrency fraud that surfaced during Bitcoin and altcoin bull runs. According to reports, crypto-related scams have resulted in nearly $14 billion in annual losses in recent years. Countless investors have been victimized by these schemes.

Understanding scam tactics and learning how to spot them is key to safeguarding your assets. This article examines the seven most common NFT scams with concrete examples and actionable defense strategies.

As blockchain technology has advanced, the NFT market now includes hundreds of thousands of buyers and sellers. In the past several years, more than 185,000 original wallets have been created, mostly by newcomers to the crypto space. These new entrants are especially vulnerable to fraud.

As NFT sales have soared, searches for “NFT scam” have hit all-time highs. While fraud risks exist in every commercial transaction, unique characteristics of the NFT market have created new opportunities for scammers.

It’s important to recognize that buying an NFT—including those featuring images—doesn’t grant you actual ownership or copyright of the image. NFT buyers only own a record of the purchase on the blockchain and the transaction history linked to the image. This structure makes it difficult to regulate NFTs in the same way as traditional art markets.

NFTs can introduce digital scarcity and empower artists by allowing buyers to own truly unique digital assets. However, blockchain transactions entail resource costs and are plagued by numerous scams and frauds. By learning about these issues, you can better protect yourself.

Notable NFT Scam Cases

The “Evolved Apes” project is among the most notorious NFT scams in recent years. The project sold designs for 10,000 apes, showcasing classic patterns of NFT industry fraud.

These cartoon-style apes followed the trend set by the Bored Ape Yacht Club—one of the most successful NFT projects—and became a familiar sight in the NFT market. Buyers received unique ape designs and were promised entry to a blockchain fighting game where apes could battle for cryptocurrency rewards. NFT sales were said to fund game development.

However, the developer known as “Evil Ape” disappeared immediately after the NFTs were sold. At that moment, Evil Ape made off with 798 Ethereum, worth about $2.7 million. Buyers were left stranded, the promised game never materialized, and those who purchased fake NFTs ended up with mere JPG images as a reminder of their lost investment.

Another well-known scam was “Mercenary,” a medieval-themed NFT game featuring play-to-earn mechanics and a new token called “Mercenary Gold.” Scammers promoted it via crypto news outlets and Twitter, drawing significant attention.

It turned out to be a complete fabrication. The scammers behind Mercenary Gold absconded with at least $760,000. They had been accused of other scams and quickly vanished from social media.

The Rise of Ape-Inspired Scams

Big Daddy Ape Club emerged as a parody of the Bored Ape Yacht Club, masquerading as a more successful project. By leveraging the popularity of celebrities interested in Bored Ape Club, they tried to win investor trust—though in reality, no one endorsed Big Daddy Ape Club.

This scam led customers to mint fake NFTs at a premium price of 1 Solana, which was valued at about $135. Ultimately, victims were unable to mint NFTs and only lost the Solana network fee.

Over 9,041 people were targeted, and more than $1.3 million was stolen in this scam. Investigations revealed that the person behind Big Daddy Ape Club likely carried out at least three scams, as wallet activity showed repeated fraudulent behavior by the same group.

NFT Pump-and-Dump Scams

Pump-and-dump schemes are a predictable form of fraud in crypto and NFT markets. Groups buy up NFTs or tokens, artificially inflate prices, and then sell off their holdings en masse, leaving others with worthless assets.

Crypto trading also sees wash trading, where the same individual buys and sells assets to inflate trading volume and drive up prices. This tactic makes assets appear more attractive to inexperienced investors and bargain hunters.

NFT projects have faced similar criticism. For example, members of SoRare NFTs’ soccer teams reportedly bought NFTs to boost interest. Even Beeple’s record-breaking digital artwork sale faced allegations of NFT fraud: the buyer, “Metakovan,” allegedly purchased the work to fund a pump-and-dump scheme involving his own B.20 token.

To avoid falling victim, always conduct thorough research before joining large-scale NFT projects. “CryptoKitties,” an early NFT app, became wildly popular on Ethereum blockchain, with one cat selling for $155,000—only to see prices drop 95% six months later.

To steer clear of fake NFT projects, check project histories and wallet records. Marketplaces like OpenSea provide transaction histories and buyer counts for collections. EtherScan lets you view all Ethereum blockchain transactions.

It’s also vital to follow projects on social media—check Twitter and join Discord communities. Quality projects require robust liquidity, artistic value, and a sustainable community, with participation from many investors and collectors.

NFT Art Theft Scams

With the rise of counterfeit NFTs, NFT art theft has become increasingly common. Scammers copy artists’ work without permission, turn it into NFTs, and sell it as authentic to unsuspecting buyers.

DeviantArt, a leading online art community with over 70 million members and 50 trillion artworks, has seen many artists fall victim to theft. DeviantArt launched new tools to scan public blockchains and third-party marketplaces, issuing warnings to members attempting NFT art fraud. The platform has sent over 50,000 alerts about potential NFT violations in recent years.

Minting an artwork as an NFT does not confer intellectual property rights. OpenSea’s user-friendly platform lets anyone easily turn images into NFTs. Bad actors can quickly steal artists’ work, set up fake OpenSea accounts, and sell counterfeit art. If the community exposes the scam, those NFTs become worthless—and getting your money back is nearly impossible.

Before buying any NFT, do your homework. On OpenSea and other marketplaces, a blue checkmark next to an artist’s profile photo indicates verification. Use Twitter, official websites, and other social media to confirm the artist’s identity. Ask artists directly about their works and user profiles. Leverage Discord channels to gather insights from other community members.

Phishing Scams: Methods and Protection

First-time NFT buyers must sign up for a crypto wallet, with MetaMask being one of the most popular for Ethereum-based NFTs.

MetaMask users have recently been targeted by phishing scams that use fake ads to solicit private wallet keys and 12-word recovery phrases. These scams also surface through malicious pop-ups featuring fake NFTs on Telegram, Discord, and other public forums.

Phishing attacks can compromise personal data and drain digital wallet funds. Even high-profile NFT projects, such as “CryptoBatz” from a famous musician, have been targeted. Just days after token launch, supporters were hit by phishing scams that siphoned crypto from wallets, masquerading as links from official project Twitter accounts.

To protect yourself, keep personal data strictly confidential. Always use hardware backups for your wallet and never enter information into MetaMask pop-ups or any other pop-up. Use only verified websites for crypto transactions—never trust pop-ups, links, or emails.

Never reveal your seed phrase to anyone. This is a cardinal rule of crypto security.

Fake Crypto Influencer Scams

NFTs have gained traction thanks to celebrity endorsements. These figures profit in various ways, but because NFT trading occurs online, everyday investors have limited information about project marketing. Scams of this kind involve fake celebrity endorsements, and by the time the public realizes the “brand ambassador” isn’t genuinely involved, many may have already lost their funds.

One example is the NFT Trollz collection promoted by a famous rapper on social media. The promise was that creating an avatar would earn NFT holders royalties, with 5% of every trade going to the original Trollz token owner.

But doubts about legitimacy soon emerged. NFT Trollz claimed it would donate $100,000 to charities, but many buyers reported that this never happened. Despite buyers’ requests for royalties, nothing was paid, and no charitable initiatives were launched as promised.

To avoid such scams, thoroughly research each project. Confirm whether celebrity endorsements are genuine and assess whether the project is likely to honor its commitments.

Auction and Bidding Scams

Bidding scams are rampant in secondary markets. These occur when someone tries to resell an NFT, and a bidder attempts to switch the cryptocurrency used for payment—a major warning sign.

For example, a scammer may respond to an NFT listed at 5 Ethereum by switching the bid to $5 worth of crypto. $5 is nowhere near the value of 5 Ethereum. Sellers who approve such transactions without careful review can suffer substantial losses.

To prevent this, always double-check the currency denomination before finalizing a deal and reject offers below your target amount. Exercise particular caution in secondary market transactions.

Fake NFT Sales from Scam Sites

If your NFT vanishes right after purchase, you may have fallen victim to a scam site. This can happen when the blockchain smart contract doesn't match the actual artwork. Uploading original art to platforms like OpenSea lets users buy it with crypto such as Ethereum, recorded as a smart contract transaction.

While the smart contract is minted on the blockchain, the actual content isn’t stored in the contract. NFTs only reference asset ownership, and the asset itself is stored elsewhere.

Therefore, always ensure the centralized platform you use is trustworthy—otherwise, you could end up buying nothing more than a link. Assets stored at a URL may be changed at any time, leaving buyers empty-handed.

When buying NFTs, confirm you truly own the digital or physical asset (such as JPEGs, MP3s, or PDFs). Choose reputable marketplaces and research platform reputations ahead of time.

Technical Support Scams

Unlike most fake NFT scams, technical support scams rely on straightforward social engineering. Scammers pose as customer service representatives for NFT projects and contact victims, aiming to build rapport and extract sensitive information.

These scams are prevalent on Discord, Telegram, and Reddit—popular crypto community forums. Scammers impersonate official support, claim “security issues” or “account verification” needs, and request wallet seed phrases or private keys.

Giving out your wallet’s security phrase means losing all your assets—never do it.

If you receive a direct message from a project founder or team, be skeptical. Most NFT projects do not send private messages to users via Discord or Telegram; official announcements are made in public channels.

NFT Buying Precautions and Self-Protection

No one wants to miss out on revolutionary ideas or investment opportunities, which drives interest in blockchain and NFTs. People don’t want to be left behind when the next big thing arrives.

Crypto assets have real value, and legitimate investment opportunities do exist. But scammers know that many are hoping for a windfall, and exploit these instincts to profit from NFT marketplace participants.

You can avoid scams by staying vigilant and only buying when information is clear and reliable. Always conduct deep research on any project before investing. Most importantly, protect your personal and wallet information at all times.

Key self-defense tips:

• Verify the project’s official website and social media accounts
• Research the community’s reputation and activity
• Check transaction histories and wallet activity on blockchain explorers
• Buy only from verified artists or projects
• Never share your seed phrase or private key with anyone
• Avoid clicking suspicious links or pop-ups
• Use trusted marketplaces only

By following these basic rules, you can significantly reduce your risk of NFT scams. Enjoy new technologies and investment opportunities while keeping your assets safe through knowledge and vigilance.

FAQ

What types of NFT scams exist?

The main NFT scam types include fraudulent NFT sales, phishing attacks targeting marketplaces, rug pulls (exit scams), and pump-and-dump price manipulation. Verify sellers and use anti-counterfeit tools to minimize your risk.

How can you spot fake NFT projects?

Look for official verification marks—reputable projects display badges. Check project authenticity through official sites and trusted sources. Review the team’s background, community engagement, and contract audit status.

What steps can you take to protect yourself from NFT scams?

Buy from official platforms and verify seller credibility. Protect your private key and seed phrase, use strong passwords and two-factor authentication, avoid suspicious prices and giveaways, and check for verified artist accounts.

What is NFT price manipulation (rug pull)?

Rug pulls occur when developers deceive investors, promote tokens or NFTs to inflate prices, and then disappear with the funds—leaving investors with worthless tokens.

How do phishing scams target NFT transactions?

Phishing scams use fake sites or messages to steal wallet credentials and seize NFT assets. Scammers impersonate reputable projects, prompt users to click links or enter seed phrases. Always confirm official sites and use strong security practices.

What should you do if you fall victim to an NFT scam?

If you’re scammed, report the incident to authorities first and strengthen your wallet’s security. Contact platform support, preserve transaction records, and consider legal action. Due to blockchain’s nature, recovering funds is difficult, so act quickly.

How do you choose a trustworthy NFT marketplace?

Pick major marketplaces with high trading volume, robust security, and positive user reviews. Proper wallet management and secure storage of secret keys are essential.