The Great NFT Heist
A heist will always start with a valuable item with a high-security measure. Our main protagonists will assemble a team, get the floor plans, and execute the heist. A story is not complete without conflict where things do not go as planned. An alarm missed out in the blueprints or a double-crossed by a team member. However, at the end of the movie everything works out, and the item is successfully stolen.
The great NFT Heist would be existing. In the good name of a heist, the thieves are motivated by the value of the art pieces, worth millions of dollars. With the security measure of the NFT marketplaces and Ethereum blockchain, it is impossible to steal the work, but as NFT becomes mainstream, anyone can find a way.
The stories would go that an individual would purchase an NFT artwork, but once they open the page it says error and can’t find the page you’re looking for. It seems like the artwork disappeared; however, there was no history of its purchase in the first place, and their money spent is gone. This made it sound more like a horror story in the making than a heist.
Other stories would go that the artist never made an account, and their fans are buying the NFT artwork they minted. It would take some time for the artist to find out because of the numerous marketplaces. However, it would be too late by then since their artwork’s money is taken by a poser.
This not a story though, and these have happened to people in real life. To avoid the same ordeal, there are 4 NFT scams you should know about:
1 . Replica Stores and Fake NFT stores
The NFT stores can be replicated by using a similar website layout. The website may contain the legitimate NFT store logo and sell the NFT available on the legitimate store. There has been an increase in domain registrations such as ‘rarible,’ ‘opensea,’ and ‘audius.’ Scammers trick the users through the websites that look like the original and logging them in with credentials and credit card information, and immediately stealing their money.
2. Counterfeit NFT or artist impression
The infamous hacker for counterfeit NFT is Monsieur Personne, who makes fake copies of the most expensive non-fungible token, the Everyday: The First 5,000 Days of Beeple. He was able to create the same token ID and transaction history that resembles the original mint by Beeple. It is good to note that the duplicate NFT does not put authenticity at risk.
So how did he do it?
There are two steps: create an unverified smart contract and use a verified artist account to sell your NFT. A smart contract is used for minting a collectible token. Personne used the same token ID with Beeple. The key was minted through a different smart contract. In the Ethereum blockchain explorer, it might boast it is the same token ID but it’s not the same asset. The verified artist account to sell your NFT. Personne was able to do this by using the seizure feature that drops the fake NFT into Beeple’s verified account and transfers it back out again. It would look like the NFT was held and sold by Beeple.
3. Giveaway or Airdrops
The scams are targeted at crypto enthusiasts by offering them free crypto/ tokens/ NFT related to NFT marketplaces. These giveaways and airdrops are marketing strategies to incentivize participants and increase their user base by giving away their tokens and coins free of charge. The challenge of this strategy it is open to imitation.
4. Brand Impersonation on Social Media
In social media channels, Telegram and Discord, where the crypto community is extremely active. The scammers set up groups targeting the brands in the crypto space and some groups claim official support or official community. They would sell fake or non-existent NFT s to users. If you get invited verifies that you are joining the real one.
The great NFT heist was just a story. It actually isn’t as exciting when you know how to keep yourself safe from it. When you are aware of the different plans of these heist people you can continue to enjoy the rewards of minting and buying NFT.
Thank you for reading! Please leave a clap and comment on what terms you want to learn, so I’ll make it easier.
