Inside the server, a bot spoofing network control carrier Collab Land requested customers to confirm their crypto belongings to take part withinside the server — however directed customers to a phishing web website online in which they had been induced to attach their cryptocurrency wallets. A consultant of Collab Land declined to comment.
Tim Silman, a nonprofit employee, is one man or woman who misplaced cash via the scam. Silman estimates that round $300–four hundred in ETH became tired from his pockets after he visited the faux Discord server via a hyperlink published at the CryptoBatz website. “I’ve visible at the least a dozen humans on Twitter voicing this equal issue,” Silman instructed The Verge.
Nguyen and Llacuna were arrested in Los Angeles, California, as they prepared to sell a second set of NFTs advertised as “Embers,” the DOJ noted.
The Justice Department believes that Embers is “another fraud scheme,” noting that it was expected to launch on or around March 26 and anticipated to generate approximately $1.5 million in cryptocurrency proceeds.
The defendants “are each charged with one count of commit wire fraud … and one count of conspiracy to commit money laundering,” the DOJ said, noting that each count carries a maximum sentence of 20 years in prison.
What do you think about this NFT rug pull case? Let us know in the comments section below.
A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since.
Dollars nft project shared scam link
“A document sent from one colleague to another on a topic, which is currently being discussed, is unlikely to trigger any suspicion,” explained Secure List. “BlueNoroff compromises companies through precise identification of the necessary people and the topics they are discussing at a given time.”
This is likely what happened in Arthur’s case.
Use hardware wallets
In the examples above, it is clear that it’s not easy to avoid such elaborate schemes. As long as your crypto wallet is connected to the internet, it is at risk of an attack.
Therefore, a good safety measure is to use a hardware wallet, like Ledger.
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It is just not possible for anyone to create a fake NFT: The person who owns the NFT owns the provenance of the asset.NFTs Are Only For Rich People
Unfortunately, this is one of the most common misconceptions preventing people from joining the NFT space. With most news outlets announcing multi-million NFT sales and celebrities like Jimmy Fallon/Paris Hilton boasting about their NFTs, it makes sense to think all NFTs are expensive.
After all, when have you heard about a great NFT collection selling pieces for $50 dollars?
There are all sorts of NFTs out there, ranging from avatars for blockchain games to art pieces by emerging artists. If you have ever purchased a painting for your home, this is just the same process as buying an art NFT.
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Do not click on links attached to promotions or giveaways. Alternatively, search for the official websites of the NFT projects or marketplaces via your search engine.
As a result, you avoid phishing attacks that may collect your crypto wallet login credentials. Also, ensure you verify the URLs of the NFT marketplaces you visit before making any NFT purchases.
- Use Blockchain Tools to Assess Developers Before Investing
Deploy blockchain explorers and rug pull detection tools to assess the account activities of anonymous developers before investing in their projects.
These tools will flag irregular activities that indicate pump and dump or rug pull schemes.
Dollars nft project shared scam link-mtu
Stay wary of phishing emails
Malicious actors pretending to be real companies and reaching out via emails are also extremely common in phishing scams in the NFT space. Unfortunately, even experienced crypto users fall prey to these scams.
Take for example the case of Arthur, a crypto investor and founder of the crypto venture fund, DeFiance Capital.
A hacker accessed Arthur’s wallet via a “targeted social engineering attack”. To explain, they sent Arthur a phishing mail seemingly from one of their portfolio companies.
Moreover, the e-mail featured “general industry-relevant content” from two “seemingly legitimate sources”.
The e-mail was from “Azure Information Protection” and included a document titled: “A huge risk of stablecoin”. When Arthur clicked the file, the hacker was able to gain access to their hot wallets in the system.
A slew of artists like Derek Laufman,RJ Palmer, Trevor Henderson,Liam Sharp, and more have had their works stolen and sold as NFTs. As the scammers often impersonate the artist, complete with their profile picture and bio, unsuspecting fans end up buying the NFTs.
In one instance, acclaimed graffiti artistBanksy’s website got hacked, with the hacker adding a link to a fake NFT auction site. None other than Pranksy fell for the scam, shelling out $336,000 for the piece.
While it’s easy to fall prey to such scams, here are some steps to ensure you don’t end up buying a stolen NFT:
- Buying from verified artists on marketplaces is an easy step of confirming the NFT’s authenticity.
Again, Discord hacks are difficult to spot, especially if the dubious links are posted on the official Discord channel. All you can do is double-check any links before spending any amount.
Alternately, confirming with the project founders before minting can also help.
As the industry evolves, the NFT scams are only going to increase. While we have listed some of the most common scams, it is not an exhaustive list and new methods are only going to come up.
As a rule of thumb, always be extra cautious every time you plan to mint any NFT. Additionally, make sure to take extra precautions such as using two-factor authentication for your accounts and a password manager.
You can also use a cold wallet to store your assets offline, making it more secure.
It was finally deleted three weeks layer after The Verge contacted the company. More than 1300 fans clicked on the scam link according to The Verge.‘It wasn’t me’
The Verge investigation found that 14.6 ETH ($40,895) had likely been collected by the scammers on January 20th alone.
So far Ozzy has been silent and the CrtytoBatz team is blaming Discord, Neither is offering to help the injured fans.
“Although we feel very sorry for the people that have fallen prey to these scams, we cannot take responsibility for the actions of scammers exploiting Discord — a platform that we have absolutely no control over,” Sutter Systems, the developers of the CryptoBatz NFT said in a statement.
Bruce Houghton is Founder and Editor of Hypebot and MusicThinkTank and serves as a Senior Advisor to Bandsintown which acquired both publications in 2019.
It is possible for an artist to link the copyright of a work to the NFT but this requires legal documentation out of the blockchain. While this might change in the future, NFTs are unable to represent copyright at this time.
The Most Common NFT Scams and How To Avoid Them
We have been beating around the bush for too long already. While it is important to understand what NFTs are and aren’t, we understand if you want us just to jump straight into the topic.
As such, let’s just do that… just after this last tip!
The golden rule you should always keep in mind in the blockchain, crypto, and NFT space (as well as out of it) is: If something looks too good to be true, it probably is. By following this golden rule, you will be safe from most scams.
Apparently, hackers sent some malicious NFTs to one of his wallets. When he clicked on the assets in an attempt to delete them, his funds were automatically transferred to the attackers.
According to a survey, by PrivacyHQ, nine out of 10 respondents reported being victims of an NFT scam.
Besides, 16% of respondents said their accounts had already been hacked.
Clearly, you can never be too careful in the NFT space. You never know what scam may hit you, when, and from where.
The only way to keep your crypto and NFTs safe is to take all the necessary precautions. And it goes without saying—always keep your guard up and be extremely wary of who and what you interact with online.
An important way to avoid NFT scams is to be aware of what’s happening out there.
NFT Scams to Watch Out For Although the NFT hype train has slowed down, the sector still processes millions of dollars in sales every day. These massive amounts have attracted new users and scammers alike.
These con artists deploy NFT scams on unsuspecting users, aiming to defraud them of their cryptocurrencies, fiat, or NFTs. Common NFT scams in the industry include:
- Counterfeit NFTs
NFT art can be reproduced digitally, even simply by downloading the picture, video, or file online.
Many scammers exploit this loophole to mint counterfeit NFTs, often copying unique art issued by reputable creators. The next step in these NFT art scams is listing the counterfeit collectibles on popular marketplaces for auction.