Lately, a lot of attention has been drawn to the NFT domain of The Cryptoverse. One of the major reasons there is an influx of people into the NFT world is because of its lucrativeness and quick profit-yielding prowess. Some of the other reasons include collectability, its usefulness in the gaming world, and its help to declining industries.
As a result of its proliferation, a lot of scams in the NFT world are rampant. These scams take different forms and are well-orchestrated such that the victims are caught unawares. According to a report, $1.7 million worth of NFTs were stolen from customers on OpenSea. This proves that NFT scams are on the increase and there is a need to be careful and take necessary measures so as not to fall prey to those scams. Some of these scams include phishing, wash trades, pump-and-dumps, rug pulls and a host of others. All these lead to the loss of assets. The important question is how can these scams be avoided?
Some of the ways these scams can be avoided are:
Ignore all DMs
One of the methods scammers employ to cajole and lure their victims is by messaging them personally and impersonating an NFT team member. This you will commonly encounter in Discord when you are either grinding for Whitelist or awaiting the mint date. When in Discord, you should ignore all DMs and treat them as scams. You should also note that the NFT teams will communicate with you generally on the main server and not via DMs. Also, you should turn off the DM feature. With this, scammers will be unable to get in contact with you.
Only clicked verify links
Another method scammers will attempt to defraud you is by cloning the original link of an NFT. This link has almost the same features as the original website. To avoid falling prey to this, you should only click on the verified and official link of an NFT project. Before clicking on a link, you should verify the authenticity of the link by cross-checking it with the link on the project’s official page. Only the links on the official page of a project are authentic and safe for you to use.
Do no disclose seed/recovery phase and login details
Your wallet’s seed phrases are strictly confidential and are not to be disclosed. Your seed phrases are germane to your wallet and its disclosure grants unlimited access to your wallet and the assets it holds. Scammers tend to cajole you into disclosing such important details and with this, they gain access to your wallet and perform their unspeakable act. Hence, your seed phrase should on no account be disclosed as it is strictly for personal use.
Confirm the price of the NFT
You should always confirm the price of an NFT before you initiate a purchase. You can confirm the price of a particular NFT on official trading platforms such as OpenSea, Mintable, or Axie marketplace. Once the price is lower than what is listed on the official sites listed above, it is probably a scam and the low price is to entice you to make the purchase.
Boost your wallet’s security
It is also important that you boost the security of your wallet as this makes it harder for intruders to access your wallet. You can do this by creating a strong password to the wallet. A strong password should include numbers, symbols, and alphabets. It should also be void of your personal details as it makes the password more difficult to guess.
In addition, the activation of 2FA also fortifies your wallet. This makes it close to impossible for scammers to access your account.
Conduct the research
You must conduct your research before investing in an NFT. In your research, people’s reviews of the project should be checked, and the extent to which the creators are engaged in the project should also be accessed. These will give a form of credibility to the project.
In sum, you must take caution when trading as any slip or mistake could lead to the total loss of your assets. Hence the need to follow these tips to trade safely with the most minimal risk.