Report on NFT Scams 2022: $100 Million Stolen

Report on NFT Scams 2022

Report on NFT Scams 2022: Over $100 Million Stolen

Probably the most concerning issue in the NFT community is the NFT Scams and thefts. Scammers use many ways to steal the NFTs from the Owners of NFTs. Additionally, In the year 2022 these scams are on their peak despite the bear crypto market. So, in this article we will be discussing report on NFT Scams and Thefts for the year 2022. This report is based on the NFT Report by Elliptic. 

 

Overview:

Popular collections such as Bored Apes, Mutant Apes, Azuki, Otherside, and CloneX make up the majority of the value lost to frauds. Over 2/3 of the NFT value that has been stolen since July 2021 is represented by these five collections. However, low value NFT frauds are likely to go unreported.

The majority of the cases are phishing scams. However, more complex variations are on the rise, such as phishing links spread through compromised accounts of social media sites.

According to Elliptic’s report- Total of $69.5 Million scams were identified. The breakdown of volume of NFT scams according to their types are as follows.

  • Generic Phishing- 51.5% – $35.7 Million
  • Social Media compromise- 28.6% – $19.8 Million
  • Scams while trading NFTs- 10.8% – $7.5 Million
  • Impersonation Scams- 7.2% – $5 Million
  • Other types- 1.9% – $1.3 Million

Report on NFT Scams based on their type:

Report on NFT Scams-Volume Chart
Report on NFT Scams-Volume Chart

Elliptic’s report provided a detailed statistics on NFT Scams. We will look through some of the major types of scams.

Scams/Frauds through Trading NFTs:

Trading NFTs is one of the most common ways through which Scams take place. In brief, Scammers trade their fake NFTs for your valuable NFTs. Furthermore, This type of scams are responsible for 10.8% of scams. In this year a total of $7.5 million took place in this form.  

One of the major incidents of Scam through NFT Trading was reported in April 2022. A user agreed to trade three bored apes for one bored ape and two mutant apes. However, the victim used a trusted trading service, which visually marks each collection with a green check mark and confirms its authenticity. Therefore, the victim agreed to the trade, thinking they were authentic NFTs. He lost NFTs worth $575,000 to the con artist.

 

Scams through Phishing Scams:

Phishing Scams are the most common of scams. It involves luring the victim into sharing his personal key for his wallet. Then, draining his wallet.

Taiwanese musician Jay Chou said on April 1st 2022 that a phishing link has caused the theft of his Bored Ape Yacht Club NFT. Chou lost other three NFTs, worth $560,000 combined. Soon, scammers sold the stolen Bored Ape for $535,000. Which is much more than its market value.

 

Scams through Social Media Impersonation:

Social media Impersonation scam involves scammers taking control of major brands. And also, they send phishing links or other traps throgh official social media pages.

A number of well-known NFT projects reported that their Discord accounts had been hacked. With messages asking users to mint “limited edition” NFTs that are linked to dangerous phishing sites. Doodles and Bored Ape Yacht Club were among the compromised projects. Scammers took two NFTs costing about $85,000.

About Report on NFT Scams and Thefts: Elliptic

Elliptic is the industry leader in managing the risk of crypto assets For crypto businesses and financial institutions worldwide. Elliptic’s Headquarter is in London. It also has offices in Newyork, Singapore and Japan.

Between July 2021 and July 2022, over $100 million worth of NFTs were officially reported as having been stolen through fraud, with criminals making an average of $300,000 each fraud. The largest month on record, July 2022, had over 4,600 NFTs stolen, showing that frauds have persisted despite the cryptocurrency down market.

Other Major NFT Scam Reported:

Opensea and BAYC Support Scam- August 2021:

Two impersonation support scam instances that happend on August 24 and 25 2021 stole $800,000 from the wallets of two victims. These scam involved Scammers impersonating Official staff. 

 

How to Avoid Scams and secure your NFTs:

Most basic way to Avoid and secure your NFTs is to not to share the key data. Also you should not click on any suspicious links. And also, make sure to do your research before proceeding with any NFT trade or purchase. To know more details- you must read our Editorial Article on “How to avoid NFT Scams”.

 

Use Hardware NFT Wallets to secure NFTs:

Using Hardware Crypto wallets will reduce chances of getting scammed significantly. UKISS Hugware Hardware Crypto wallets might be one of the best options for you. They have one of a kind features for the safety of your NFTs.

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