The U.S. Federal Bureau of Investigation (FBI) has warned that criminals are posing as Non-Fungible Token (NFT) developers in financial fraud schemes, despite the declining number of NFT crimes and token thefts. The FBI stated that these malicious actors typically use one of two approaches to execute their schemes: either by infiltrating the social media profiles of authentic developers or by creating nearly identical accounts.
In the first approach, the bad actors take over or create fake social media accounts that look like they belong to legitimate NFT developers. They then use these accounts to promote fraudulent NFT releases, often using phrases like “limited supply,” “surprise,” and “exclusive mints” to create a sense of urgency. Once an unsuspecting individual buys into the scheme, they are lured to a fake website via phishing links, where they are urged to connect their crypto wallets to purchase digital assets. The FBI wrote that this usually results in the “transfer of cryptocurrency and NFTs to wallets operated by criminals.”
In the second approach, the criminals create social media accounts that are nearly identical to those of legitimate NFT developers. They then use these accounts to post legitimate-looking content, such as news articles and price charts. However, they will also occasionally post links to fraudulent NFT releases. If an unsuspecting individual clicks on one of these links, they will be taken to a fake website that looks like it belongs to a legitimate developer. Once again, they will be urged to connect their crypto wallets to purchase digital assets.
The FBI warned that investors should be wary of any NFT releases that seem too good to be true. They should also be careful about clicking on links from social media accounts that they are not familiar with. If you are ever unsure about the legitimacy of an NFT release, it is best to err on the side of caution and avoid it altogether. In addition to warning about NFT scams, the FBI also noted that the number of stolen NFTs has declined in recent months. According to blockchain security firm PeckShield, the value of NFTs stolen in July was $1.73 million, down 31% from the $2.27 million stolen in June. This trend is likely due to a number of factors, including the increasing awareness of NFT scams among investors, the declining value of NFTs, and the increased scrutiny of NFT marketplaces by law enforcement agencies.
Despite the decline in thefts, the FBI warned that investors should still be vigilant about protecting their NFTs. They should use strong passwords and two-factor authentication, and they should only connect their crypto wallets to websites that they trust. They should also be careful about clicking on links from social media accounts that they are not familiar with.
Market observers suggest that the declining trend in NFT thefts may be due to the fact that NFTs are not as lucrative as they once were. The floor price of several blue-chip collections has suffered in the current market condition, making it less profitable for criminals to steal and sell NFTs. Additionally, the increased scrutiny of NFT marketplaces by law enforcement agencies is making it more difficult for criminals to launder stolen NFTs.
Despite the declining trend, the FBI warned that investors should still be wary of NFT scams. They should only invest in NFTs from legitimate sources and they should be careful about clicking on links from social media accounts that they are not familiar with.thumb_upthumb_downshareGoogle it
