About cryptocurrencies and other digital assets like NFTs and other digital tokens, one common thing is their value and extent of reach. Not just their popularity, but their price is very much higher in the digital market. This is the reason many people find buying these assets beneficial and deal only with this service. You can simply think of a trade involving the exchange of funds, money, and other monetary excuses in turn for some service or token, but this is not this simple. There are many trading platforms, but no one is like the BitQT platform.
In the digital world, the number of scammers is very high compared to that in the physical world. Also, as the price of assets is high, so the risks are also high. As a result, one should be aware of methods that can prevent him from falling into the same trap. In this article, we are going to discuss various methods that can be sued to prevent one from various crypto frauds involving NFTs.
NFTs- An overview
The full form of an NFT is non-fungible tokens. These have become one of the most discussed and hot topics on the internet. Some people see NFTs as simple because of the entities involved in the word fungible. Now, if we want to technically describe an NFT, the definition will be an essentially defined token, unique in its entities involving either music, art, or anything related to the physical world, converted to digital media. The major entities of which one can make an NFT is the art, music, a video game, or any other media that you find associated with the digital world. These can also be referred to be some particular positions on the popular entity called blockchain that is the heart and soul of the entire NFT infrastructure.
Risks of NFTs and their prevention
The platform used by an NFT for transacting successfully is none other than blockchain and as a result, the risks that are associated with a cryptocurrency are by default in attachment to the NFT. attacks on NFTs are not new and earlier this year in February, a phishing attack cost around $1.7 million worth of NFTs. On one hand, security related to a blockchain is comparatively strong, but still, some risks find their place in this network. Some of the scams are compiled here.
- Fake market places
This is the foremost scam or fraud associated with the name of an NFT. you have seen various links on the websites claiming them from some particular firm or some organization. To make it clear, these are only fake marketplaces that will steal your data and use it against you. You should be cautious of the links you are clicking.
- Phishing attacks
Ever heard or read an email claiming you have won some amount of money in a lottery or some other lucrative offer then you are very well synced with a phishing attack. These emails have suspicious links in them which can lead you to some malicious websites. The link can be used to pour a virus or some other software that can steal your vitals and pose risk to your NFT digital wallet.
- Fake customer support
Some callers claim to be from some customer support and ask for your credentials. They are no more than scammers and you should never share your data or any kind of number with that so-called customer support executive. There are cases in which after stealing information, the attacker has clean access to the NFT wallet thereby making it easier for stealing.
- Providing fake security
Just like fake customer support, this risk is based on false claims from the opposite party. This is also called a rug pull scam and involves security offerings from some fake organizations that only need your sensitive information and have nothing to do with your security.
