NFT scams

Frequently asked questions

• How do these scams work?

  The scams work by hackers and scammers stealing your cryptocurrency wallet login details, or sophisticated scammers can trick you into believing that you have successfully purchased or sold a legitimate NFT. Many of these cybercriminals are attracted to the monetary value that is attached to digital assets, which is why they are continuing to adapt and expand on their typical hacking methods, such as phishing, to access user accounts.

  This type of fraud is on the rise and it is affecting thousands of people worldwide. If you are looking at buying NFTs, then our team of legal experts here at Wealth Recovery Solicitors are on hand to provide you with further information and how they work if you believe you may have been the victim of fraud.

• How do you buy NFTs?

  NFTs are purchased through a variety of different methods and differs based on the platform you use, of which there are thousands. Most use waitlists, so once you reach the top of this waitlist, you are randomly chosen to buy an asset. Some platforms accept USD and cryptocurrencies, however some platforms only accept the OpenSea cryptocurrency.

  The first step to buying NFTs is to purchase your currency on a crypto exchange platform, then transfer your crypto to a secure crypto wallet. Some exchanges, such as Coinbase, have built-in wallet features which are usually offered when you open an account. Then, you connect your wallet to your chosen NFT marketplace. Once it is connected, you can start browsing the marketplace’s NFTs and look to make your NFT investments.

• What are the risks of NFTs?

  NFTs can simply be categorised as a high-risk and high-reward investment type, as they have become a very popular and well-talked-about market as many are becoming rich, and everyone wants a piece of the pie.

  Like sharks to blood, scammers are taking advantage of others’ success and are a huge risk when trading within this market. Therefore, keep educated and buy only NFTs that you know of.

• What does a scam look like?

  Scams can look like a range of things, but the most common we’ve found is scammers stealing the identities of government officials or posing as a member of an NFT service in an attempt to gain access to your accounts and private information, such as your passwords or wallet keys, and give them the opportunity to take it all away from you.

  They can even look as simple as pop-up ads, emails, or phone calls from new numbers; just make sure you reach out to the original numbers you’ve contacted or are visible on our website to protect yourself from any further issues.

• What steps should I take after falling victim?

  It may seem hard at first, but sit back and ensure you take a record of everything, such as dates, account numbers, statements and all of your information. This will make it easier when you come to us.

  You can book a free consultation where we will talk through your case and give you the next steps you should take during this process.

  Ensure you only contact and communicate with the number we have given you to avoid any further issues down the line. To be even more sure, make sure you keep a record of who you spoke to and never share any personal information, such as passwords.

• Who owns NFTs?

  Who owns NFTs is a valid question that many investors find themselves asking, but in reality, anyone can own an NFT. An NFT can only have one owner at a time, but when exchanging on platforms, there may be NFT scams in play which aim to steal your NFT investments. Due to them being stored on the public blockchain, it makes it easy to verify ownership of the exchange.

  Data and specific information may be stored in the NFTs metadata, which is why there is a lot of NFT fraud as people are after their personal key information etc. If you have had your NFTs stolen due to fraud or have lost them through regulated brokers, we may be able to offer an NFT recovery service to recover your lost assets. Contact us today for more information.