In recent years, the booming NFT sector has also attracted the attention of hackers and scammers. One of the most common scams in the industry is the NFT giveaway scam, where hackers trick users into giving away their valuable NFT assets under the pretense of a free giveaway. These scams have become so widespread that even high-profile individuals like Ethereum founder Vitalik Buterin have fallen victim to them.
Last month, Buterin’s Twitter account was hacked, and the hackers tweeted out a link offering a free NFT. The tweet claimed that the NFT was a promotion for a commemorative drop from Consensys, a reputable company in the blockchain industry. However, in reality, it was a scam designed to steal NFT assets from unsuspecting users. Over $800,000 worth of NFTs, including the iconic CryptoPunk #3983, were stolen as a result.
The fact that these scams continue to be successful raises the question of why they still work in 2023. The answer lies in human psychology. People are naturally attracted to the idea of getting something for free, and scammers exploit this by offering free NFTs as bait. Even though these scams have been in existence for some time now, not everyone is aware of how they work. Additionally, when high-profile individuals like Vitalik Buterin promote these giveaways, it adds an air of credibility to the scams, making users more likely to fall for them.
So how can users protect themselves from falling victim to NFT giveaway scams? While scammers are constantly evolving their tactics to make their scams more effective, there are a few steps users can take to minimize the risk:
1. Verify: When a popular person or company tweets out a link promising a free giveaway, take a moment to verify its authenticity. Visit the official Twitter page and website of the person or company mentioned in the tweet to confirm if they are indeed running a giveaway. Hackers sometimes gain access to multiple accounts simultaneously to trick victims, so verification is crucial.
2. Separate Your Assets: The goal of NFT giveaway scams is to get users to link their NFT wallets so that the assets within them can be stolen. To protect yourself, consider keeping your NFT assets in separate wallets. Ideally, you should have a cold wallet for your most valuable NFTs and a separate wallet for giveaways and other less valuable assets. By keeping your assets separate, you reduce the risk of losing everything if you fall victim to a scam.
3. Embrace FOMO: The appeal of these scams lies in the fear of missing out on a free NFT. However, it’s important to be comfortable with the idea of missing out to protect your assets. If someone who doesn’t usually host giveaways tweets a link promising a free NFT, refer back to step 1 and verify its legitimacy. If you can’t find any evidence supporting the giveaway, it’s best to err on the side of caution and avoid clicking on the link.
In conclusion, while scammers will continue to target the NFT sector, users can take steps to protect themselves and their assets. By being vigilant, verifying the authenticity of giveaways, separating their NFT assets, and embracing the fear of missing out, users can greatly reduce the risk of falling victim to NFT giveaway scams. It’s important to stay informed and educated about the latest scam tactics to ensure the safety of your NFT investments.
