The Bored Ape Yacht Club (BAYC) recently issued a warning to its customers about falling victim to social media scams. The popular NFT seller revealed that its Instagram account was hacked by fraudsters who tricked users into transferring their valuable virtual assets worth millions of dollars.
According to BAYC, the hackers posted a fraudulent link on its Instagram account, leading users to a fake website that mimicked the BAYC platform. The scam promised users the opportunity to mint “land” in BAYC’s Otherside metaverse project if they clicked on the link. However, once users clicked on the link, they were prompted to sign a transaction that transferred their assets to the scammer’s wallet.
Upon discovering the hack, BAYC immediately alerted its community, removed the compromised links, and attempted to regain control of its Instagram account. The company confirmed that two-factor authentication was enabled, and security measures were in place, but the hackers still managed to access the account. BAYC is currently working with Instagram’s team to investigate how the breach occurred.
Reports suggest that over 50 NFTs were stolen in this scam, including Bored Apes, Mutant Apes, and BAKC, with an estimated total value of approximately $3 million. A spokesperson for Yuga Labs, the owner of BAYC, stated that they are actively reaching out to affected users to address the situation.
The incident highlights the growing trend of scams and fraud in the NFT space. A recent report indicated a 400% increase in NFT-related fraud in 2021, underscoring the need for users to exercise caution when engaging in virtual asset transactions.
As the NFT market continues to expand, it is essential for users to remain vigilant and verify the authenticity of platforms and links before transferring any assets. By staying informed and taking proactive measures to protect their investments, users can mitigate the risk of falling prey to fraudulent schemes.