Scam NFT - don't be fooled by scammers! [NFT scam]

The disappearing influencers, and with them the NFT and the millions of dollars paid for them, are a problem not only of the distant and rich world. The Office of Competition and Consumer Protection in Poland is also starting to be interested in this market, or rather in the frauds that have started to accompany it as well.

- We are looking at "teddy bears" and their online promotion as part of the activities already carried out against influencers. We are in the course of both investigations in which we investigate both the scam and the method of labeling messages on social media - admits Małgorzata Cieloch, press spokesman of the Office of Competition and Consumer Protection.

What is the reason for this? The novelty that NFTs are still in Poland and the fact that the misunderstanding of the market increases the possibilities of fraudsters: unknown technology is easier to fall for, because even if we know what NFTs are, many of us do not fully understand it. So let's start from the beginning:

What is the NFT token

NFT it is a digital confirmation that we have a thing, a work of art or anything else that has real value. It can even be an online picture: a monkey, a teddy bear or a horse, or a collection of photos of NBA stars - importantly: it can be real, e.g. printed, or only digital. The non-exchangeable NFT token is therefore a kind of certificate of authenticity, most often of Internet creativity. What does it give us? Blockchain security means that even the best counterfeiter will not fake it, as he could do with a painting with the famous Mona Lisa. 

An NFT token can be a ticket to an elite club, or simply make a dream come true to having something others can only dream of. How much is it worth? This only values ​​the market. And it is this valuation that raises the greatest emotions, because NFTs reach millions of USD, and this - as everywhere - attracts fraudsters.

UOKiK: we will x-ray the advertisements and creators of NFT

NFT is already recommended on the Polish Internet by virtually all well-known influencers. From fitness bloggers, through fashion instagramers, and ending with automotive youtubers. Nobody is saying that all of them are scams, but the scale of the phenomenon makes him interested UOKiK. 

The supervisor will check the rules of cooperation with an emphasis on whether all materials are reliably marked as sponsored or advertising. Some internet creators limit themselves only to hashtags #adthat say little to those who don't spend a lot of time on the Internet. According to UOKiK, such activities are surreptitious advertising, i.e. unfair practices.

Scam at NFT - don't be fooled

Unfair competition and masking sponsored entries are one risk, but the classic NFT scams are much worse. A few days ago, the British customs and tax office took over three NFTs with a value of approx. 27 thousand. PLN, which were used for fraud in the amount of over PLN 7,5 million. 

This is the first NFT activity in the UK, but it will definitely not be the last. It is in this country that the NFT fraud is particularly intensifying. Their scenario, however, is not particularly sophisticated. It is based on methods known also in Poland: most often the victim is called by a person impersonating a bank employee, Cryptocurrency exchanges or just a financial intermediary and urges you to buy NFT. It is supposed to be a great investment, deposit of funds, or even a prize in a competition - even if we did not participate in any of them ...

How not to get fooled by the NFT:

• Do not talk about investments with strangers in chat rooms, most of them are hustlers,
• Watch out for fake websites pretending to be official websites of banks or exchanges, especially those with links that you have to click to "proceed" or receive something,
• Never share your screen with strangers, especially if they persuade you to collect rewards, funds, etc.,
• Never give anyone your recovery phrase (those dozen or so random words that are worth writing down to have access to your digital assets in case of emergency), because it is not needed for any actions: stock exchange employees, intermediaries, etc. Only you and ... fraudsters. Also, do not save it in files on your computer, especially those called "passwords", "codes", etc. Fraudsters who gain access to your computer will definitely review them carefully. And they will have all electronic funds on the tray.

We warn against using the services of unlicensed companies. Before opening an account, always make sure it is correct the broker has the appropriate regulations and permits at the indicated financial market supervisory institution.