Seven Common NFT Scam Tactics

The Reality of Cryptocurrency Scams

With the advancement of blockchain technology, cryptocurrency scams have become an unavoidable issue in the digital asset sector. In short, wherever there’s profit, illegal activity inevitably follows. This is a common economic principle, especially evident in the NFT market.

NFTs (Non-Fungible Tokens) have achieved broad mainstream recognition compared to other blockchain concepts. In 2021, the number of NFT buyers and sellers reached about 280,000, with more than 185,000 original digital wallets created. Many participants were newcomers to the crypto world, making them particularly vulnerable to scams.

Significantly, at the beginning of 2021, global NFT sales rapidly exceeded $4 billion. Simultaneously, Google search volume for "NFT scam" reached a historic peak. This clearly demonstrates that market booms often come with heightened risks.

Investors must grasp a critical concept: buying an NFT with an image does not mean you actually own that image. In other words, buyers cannot freely copy or use it for commercial purposes. What you truly own is a blockchain transaction record—a proof of digital ownership, not the rights to the physical asset itself.

Common Scam Tactics in the NFT Market

The Evolved Apes project, launched in October 2021, is one of the most notorious NFT scams to date. The project sold 10,000 uniquely designed ape NFTs, promising to develop a blockchain fighting game where the apes could battle. Winners were to receive cryptocurrency rewards, and NFT sale proceeds were said to fund the game's development.

However, the developer, known as "Evil Ape," vanished immediately after completing the NFT sales. By the time the team disappeared, Evil Ape had secured 798 ETH—about $2.7 million at the time. This case highlights the substantial risks present in the NFT market.

Another high-profile scam was the Mercenary project, a medieval-themed NFT game that claimed to offer Play-to-Earn features and launched a new token called Mercenary Gold. When it launched in 2021, the Mercenary scam team heavily advertised on crypto new outlets via Twitter, attracting significant investor interest.

However, the entire project was a sophisticated fraud. The Mercenary Gold scam team absconded with at least $760,000, resulting in major losses for investors.

"Ape" Themed Scams Emerge Again

Big Daddy Ape Club was a copycat project imitating the Bored Ape Yacht Club. The scammers tried to create the illusion that celebrities like Jimmy Fallon and Paris Hilton were interested in Bored Ape Club, but in reality, these celebrities had never endorsed the Big Daddy Ape Club.

Behind the Big Daddy Ape Club, the scam team urged investors to pay 1 Solana (about $135 at the time) to “mint” fake NFTs. In the end, investors were unable to mint NFTs, but still lost their Solana transaction fees.

This scam targeted over 9,041 victims and resulted in more than $1.3 million in losses, causing significant financial damage.

Pump and Dump Schemes in the NFT Market

Pump and dump scams are now widespread in both the crypto and NFT markets. In these schemes, scam teams coordinate to buy up certain NFTs or cryptocurrencies, artificially inflating prices. When prices peak, they dump their holdings, causing other investors’ assets to crash in value, sometimes becoming worthless overnight.

Wash trading is also common in crypto markets. Here, the same individual or group acts as both buyer and seller, generating fake trading volume to push up asset prices and mislead other investors.

Caution Is Essential in Major NFT Projects

CryptoKitties was one of the first major NFT projects. Launched on Ethereum in late 2017, it quickly became a hugely popular collectible. At its peak, the most sought-after CryptoKitty NFTs sold for as much as $155,000 in ETH. However, within just six months, prices crashed by 95%, causing heavy losses for many investors.

So, how can you avoid scams from counterfeit NFT projects?

First, investors must closely review a project's background and wallet transaction history. On OpenSea or similar NFT platforms, you can view purchase records and the number of buyers for NFT collections. Tools like EtherScan let you check all Ethereum blockchain transactions—critical information for assessing project legitimacy.

Investors should also follow projects’ official social accounts. Monitor their Twitter feeds and join their Discord communities to track updates and community engagement. A high-quality NFT project should have strong liquidity, artistic value, and robust community support—driven by active participation from both investors and collectors.

NFT Art Theft Is on the Rise

Fake NFT scams are steadily increasing, as are complaints about stolen NFT artwork. Scammers copy original artists’ works, mint them as NFTs, and sell them to buyers who mistakenly believe they’re purchasing genuine art.

DeviantArt, a leading online art community with more than 70 million members and 50 billion pieces of art, has seen many artists complain about stolen work. To combat this, DeviantArt released a new tool to scan public blockchains and third-party platforms, alerting members at risk of counterfeit NFT scams. Since August 2021, the system has issued more than 50,000 NFT infringement alerts.

NFTs and Intellectual Property Rights

Investors must understand: 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 or photos into NFTs. Scammers can steal art, create fake OpenSea accounts, and sell counterfeit works. If a scam is exposed, the NFT you bought becomes worthless. Worse yet, it’s nearly impossible to recover your funds once this happens.

Always conduct thorough due diligence before buying NFTs on any platform.

On OpenSea or other NFT platforms, a blue checkmark next to an artist’s profile photo means they’re verified. If the artist has a Twitter, website, or other social accounts, use those to validate their identity. Reach out directly to ask if a piece is their original work and confirm user details. You can also use Discord to confirm with the broader community.

Phishing Scams

When buying your first NFT, you’ll need to set up a crypto wallet. MetaMask is one of the most popular Ethereum wallets for collecting NFTs.

Recently, MetaMask users have become prime targets for phishing scams. Fraudsters use fake ads to solicit wallet private keys and 12-word seed phrases. These phishing attacks come in many forms. Fake NFT pop-ups often appear on platforms like Telegram, Discord, and other public forums.

Phishing can lead to stolen identity and wallets. Ozzy Osbourne’s CryptoBatz project was hit by such an attack—just two days after launch, supporters were targeted by NFT phishing scams. Crypto was stolen from users’ wallets, and the malicious link was posted from the NFT project’s official Twitter account.

How can you protect yourself?

Keep your personal information strictly confidential. When restoring or backing up a wallet, you’ll need your seed phrase. Never enter it into MetaMask or any pop-up window. Always use verified official websites for crypto transactions—never transact via pop-ups, unknown links, or emails.

Your seed phrase should never be shared with anyone—this is fundamental to digital asset security.

Fake Crypto Influencers

Much of the NFT market’s hype is fueled by celebrity endorsements and promotions. Many public figures profit in various ways from NFTs. But since most NFT trading happens online, retail investors often lack access to real marketing information. In these scams, fake endorsers play a key role. By the time investors realize the so-called ambassadors weren’t involved, money has already been lost.

In October 2021, rapper 6ix9ine’s NFT Trollz collection sparked widespread social media attention. The project claimed NFT holders would receive royalties—5% of each transaction would be paid back to original Trollz token holders.

But questions about the project’s legitimacy quickly emerged. NFT Trollz claimed it would donate $100,000 to charity, but many buyers said the promises were never kept. Most received no royalties, and no charity campaign ever began.

To avoid these scams, investors must conduct thorough due diligence. Are celebrity endorsements authentic? Can the project deliver on its promises? These are key questions to confirm.

Auction Scams

Bidding scams are very common on secondary markets, often targeting users who are trying to resell NFTs. When you list your NFT, bidders may try to change the cryptocurrency used for payment. This is a clear red flag—$5 is not 5 BTC. Investors must stay vigilant.

Always confirm the transaction currency and reject any offers below your minimum acceptable price. This is essential to protect your interests.

Scam Websites

Scam websites often cause NFTs to disappear instantly after purchase. This happens because there’s a difference between on-chain smart contracts and the actual art content. When you upload works to sites like OpenSea, they’re purchased with crypto and a smart contract is created.

Smart contracts are what actually get minted on the blockchain, but they don’t contain the artwork itself. NFTs are essentially certificates for asset ownership, while the actual asset can be any digital content.

That’s why it’s vital to use only reputable centralized platforms. Don’t just buy a link pointing to an image—the content at a URL can change anytime, and you could end up with nothing real.

When purchasing NFTs, confirm you’re acquiring the actual digital asset—such as a JPEG, MP3, or PDF file—not just a link.

Tech Support Scams

Unlike complex NFT scams, these are direct and simple. Scammers impersonate NFT project customer support staff to contact you and extract your confidential information. Most of these scams occur on Discord, Telegram, or Reddit. If you give out your wallet’s seed phrase, you hand over all your assets to the scammer.

If you receive a private message from someone claiming to be a project founder, treat it with suspicion. Most NFT projects will never DM users on Discord or Telegram. This is a crucial sign of authenticity.

Extreme Caution Is Required When Buying NFTs

No one wants to miss out on a revolutionary investment opportunity. That’s why blockchain and NFTs attract so much attention—everyone wants a shot at the next big win.

Crypto assets do offer real investment value. But scammers know many are chasing instant riches—and exploit this with a range of fraud tactics targeting NFT investors.

Avoiding scams is entirely possible. Vigilance is essential. Only buy when information is verifiable. Always research projects thoroughly. And always safeguard your personal information and digital assets.

FAQ

What are the seven most common NFT scam methods?

The seven common NFT scam tactics are: fake marketplaces, counterfeit NFTs, unauthorized transfers, fraudulent projects, phishing scams, pump and dump schemes, and celebrity impersonations. Investors should stay alert and always verify project legitimacy.

How can you spot fake NFT projects and scam sites?

Review the official website and white paper, verify affiliations with well-known artists or brands, and check for transparency, community engagement, and mainstream platform reputation. Beware of promises of high returns, sites with nearly identical domain names, and any requests for your private key.

What security risks should you watch for when buying NFTs?

When purchasing NFTs, check the team’s background and transparency, ensure contract security, verify official channels, avoid anonymous teams, assess whether market demand is reasonable, secure your wallet, and be cautious of inflated prices and false advertising.

Why do some NFT projects suddenly disappear? What is a "rug pull" scam?

A rug pull is when a project team abruptly withdraws liquidity or abandons a project. Common tricks include manipulating smart contracts to block selling, hiding backdoors, and vanishing after locking liquidity. To stay safe, review audit reports, verify the team, and check liquidity lock status.

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

Store assets offline in a cold wallet, never share your private key or seed phrase online, avoid phishing emails or malicious sites, and only sign transactions on trusted platforms. Regularly review contract approvals and revoke them if you find anything unusual. Stay alert and act immediately if you detect suspicious activity.

What should you do and how do you report NFT scams?

Report the incident to your local police, providing full transaction records, wallet addresses, and blockchain transaction hashes. Consult a professional attorney to ensure your report is accurate. Cease all contact with the scammers and retain all evidence.

What are fake community and Discord scams? How can you tell real official channels from fakes?

Fake community scams impersonate official accounts to steal information. To distinguish the real from the fake, check the official URL, look for verification badges, and review the timing of posts. Official channels will never request your keys, private key, or payment. Be cautious with links and always confirm information by visiting the official site directly.