As non-fungible tokens (NFTs) are increasingly becoming a global phenomenon due to their mainstream adoption, people are also concerned about the proliferation of related scams. A recent study showed that the most common NFT scams are spreading online.

In March 2021, suspicious domain name registrations with the word “NFT” surged by 250%

According to research conducted by Bolster’s security experts, the copy storage market is in a bullish trend due to recent data indicating an increase in the number of domain registrations.

Scammers have been actively creating duplicate storage with suspicious domains named “rare”, “open sea” and “audious”.

According to research, compared with previous months, such domain name registrations have soared by nearly 300% in March 2021.

Bolster said that copy shops or counterfeit imitators often rely on using the same design from a legitimate NFT store, or even copy its logo.

Similarly, a fake NFT store is considered a variant of a duplicate NFT store, the difference being that the first entity did not imitate the design of an existing legitimate store. In other words, the NFT sold by fake stores does not exist.

In addition, in terms of stopping the bullish momentum of counterfeit NFT stores, the data is not optimistic. In March 2021, suspicious domain name registrations using the term “nft” accounted for 17,118, an increase of 250% compared to February 2021.

Bolster highlighted other types of scams related to NFTs, such as selling “counterfeit NFTs” by counterfeiting original artworks. The researchers elaborated on the matter:

If you follow the NFT in the last few weeks, you will know the Banksy style artwork sold in the NFT market for $1 million in cryptocurrency. Although I don’t want to figure out whether this is a copyright/trademark issue, it lays the foundation for future development. Counterfeit and “inspired” artwork/content in the real world will soon become a problem. Users need to pay attention to what they buy or bid on. It is difficult to verify sellers in such online markets.

The rising trend of scams is far from slowing down

Like in the encryption field, the NFT field is not immune to handling fake gifts or airdrops. According to Bolster, “thousands of such scams” are discovered every month. Telegram, Facebook, Twitter and Discord are the most common methods of spreading fake giveaway campaigns.

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In the same line, scammers are using social media networks to perform brand imitations related to NFTs. Bolster highlighted several examples of active fake communities in Telegram.

But the company believes that the growth trend of NFT fraud will not slow down anytime soon:

These scams will become more complicated and complicated. Scammers will continue to innovate to ensure that users like these. Not only NFT, but when buying goods online, buyers also need to know where they are and to whom they are gifting credit card or bank information.

What is your opinion on the findings of this study? Let us know in the comments section below.

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