In connection with the emerging NFT market taking off and many NFTs quickly increasing in value, some people made a lot of money. This contributes to many people quickly wanting to enter without doing research, which creates a gold mine for scammers who try to steal your NFTs and cryptocurrencies. NFT security is therefore something you should learn.
If scammers get hold of your private key you will lose all the assets the private key gives access to. To help you keep your NFTs safe, we will here walk you through common scams and security measures to avoid them.
When you own NFTs and cryptocurrencies what you really own is a private key. This gives you access to your NFTs and cryptocurrencies. You must be the only one in control of this key which must be kept safe at all times.
A hardware wallet greatly improves the security of your NFTs and cryptocurrencies. Unlike software wallets, which are vulnerable to hackers, hardware wallets were developed so that you don't have to rely on a software on your computer to manage your private keys. Hardware wallets store your private keys on a physical device that prevents unauthorized access to your private keys.
Your computer communicates with the hardware wallet, sends transactions to the hardware wallet for physical signing, and then these are returned to your computer as signed transactions. In this way, your private keys are never exposed on your computer, which increases security.
The most common scams happen when people click on malicious links. When you click on a malicious link, it can take you to several different places, for example a fake website where you are offered free NFTs in exchange for signing a transaction. Upon signing the transaction, the scammers can gain access to your private key and thus transfer your NFTs and cryptocurrencies to their own crypto wallet.
Use official links
Always use official links for NFT projects and not links someone sends you. Messages, emails and text messages containing links should be treated with great caution, they may be phishing attempts.
Do your research before clicking on links
Do your research before opening a link sent to you and always assume that it may be a scam. If you unexpectedly see a pop-up window on your computer where you are given the choice to sign a random transaction in MetaMask, it may be a sign that you previously have clicked on a malicious link. Do not sign the transaction until you have ensured that it is legitimate.
If you receive notifications or see in your Twitter feed that an NFT collection is being launched without prior warning, you should be careful. If the comment field at at the same time is turned off, it is basically always a scam. Both creators' and NFT projects' Twitter accounts have been hacked, which have resulted in hackers being able to steal NFTs and cryptocurrencies equivalent to hundreds of thousands of dollars as followers of the hacked accounts clicked on the phishing links that were shared.
In many cases, Discord messages or tweets are also sent stating that time is short, that it will soon be sold out, or offers to buy some of the last editions of the collection.
Several legitimate NFT collections have been launched where you only had to pay the transaction fee to get an NFT. However, there have also been several scams where free NFTs have lured people in, resulting in people being hacked after signing a transaction regarding free NFTs. If you intend to sign a transaction to get a free NFT, you should carefully check that you are really signing a transaction that will get you what you are looking for and nothing else.
Pause if you are uncertain
It easily happens that you want to seize the opportunity and quickly sign the transaction as it is free and thus likely several others who want to get their hands on an NFT before the collection is sold out. However, it is important to always check what you are signing to ensure that everything is legitimate.
NFTs that randomly appear in your crypto wallet are very, very often scams. The exception may be if you previously purchased an NFT where the creator later distributes additional NFTs to collectors.
Do not interact with unknown NFTs
You should not interact with NFTs in your wallet you are not familiar with. There have been scams draining your wallet if you interact (sell or transfer) with them.
Too good to be true
Another phenomenon you should watch out for is when an NFT appears in your crypto wallet and someone offers you an attractive price for that NFT. If you accept that price by signing a transaction, you risk losing your other assets that wallet gives you access to. If something is too good to be true, it probably is.
When a Discord bot that normally is used for verification sends a message without prior notice, you should be careful.
To avoid scams in Discord you can right-click on the bots you know are legitimate and make a note about it to always be able to quickly check if the bots are legitimate.
Always stay vigilant when it comes to unexpected Discord messages.
There are tons of fake verified Twitter accounts posing as official accounts for various projects.
Always assume that NFT projects never publish a link or launched an NFT collection on Twitter without prior notice. Comments in the comment field on Twitter regarding MetaMask, free NFTs, hype regarding launch of an NFT collection or similar are basically always scams.
Never download anything unknown. There have been scams where downloading files or fake browser extensions run malware that results in your crypto wallet being hacked if you have ever used your seed phrase digitally. Always make sure you are on the official site before downloading anything.
If you get something sent to you from someone you don't know that directs you to download an EXE file, it is likely a scam. EXE files are designed to launch computer programs when opened which can result in your software wallet being hacked immediately after download.
If you agree to trade with someone outside of an NFT marketplace, you should carefully research the platform you agree to trade on.
Be careful, do your research and talk to others who have used the platform before going through with the transaction. Pause if you are uncertain.
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