The Non-Fungible Token (NFT) community has been targeted by a surge of financial fraud, prompting the US Federal Bureau of Investigation (FBI) to issue a warning to internet users. Criminals are posing as legitimate NFT developers in order to deceive individuals eager to invest in these digital assets.
In a public service announcement released recently, the FBI highlighted the tactics used by these deceptive actors. They often gain unauthorized access to NFT developer social media accounts or create fake accounts that closely mimic authentic ones. By taking control of these accounts, the fraudsters promote fake NFT releases, using phrases like “limited supply” and promises of surprise minting events to lure in unsuspecting victims.
Once users are directed to fraudulent websites that resemble legitimate NFT project pages, they are encouraged to connect their cryptocurrency wallets to make a purchase. However, these wallets are linked to malicious smart contracts, allowing the criminals to steal both cryptocurrency funds and valuable NFTs from their victims. To cover their tracks, the fraudsters often route stolen assets through cryptocurrency mixers and exchanges.
To protect themselves from falling victim to these scams, the FBI advises internet users to thoroughly research any unexpected NFT opportunities, verify the authenticity of social media accounts, validate website legitimacy, and approach enticing rewards with skepticism. If individuals encounter suspicious NFT-related activities, they are encouraged to report them to the FBI Internet Crime Complaint Center (IC3) using the keyword “NFTHack.” Providing relevant information such as links, social media accounts, crypto accounts, or domains used in the scam will aid in the investigation.
This warning from the FBI comes in the wake of a previous alert issued by both the FBI and MI5 regarding the espionage threat posed by China to business leaders and academics. It is crucial for individuals involved in the NFT community to remain vigilant and take proactive measures to safeguard their digital assets from fraudulent actors.