Hello and welcome to The Scam Logs, where we inform you of the newest scams that lurk around the cryptocurrency space. Today, we’ll talk about a scam that’s basically art forgery.
To explain, we must first talk about NFTs. A new way to create collectibles, NFTs are truly one-of-a-kind items, backed by the blockchain. Though the images involved in NFT art pieces might be easily copied, there’s only one original—and in a collector’s market, that’s huge.
But it’s that copying aspect used in the scam. They fake one enough to get money. The scam doesn’t stop there, though. Sometimes, the money paid for the fake NFT isn’t even the point or the goal of the scammer. What they might want is the transaction data. For the more malicious scammers, they can use this to steal much bigger amounts of money out of every connected account.
So, does this mean that NFTs are inherently risky? No, not more than buying most things online. Just like buying regular art, it’s a huge marketplace with plenty of legitimate actors. The answer is, as always, to be informed.
The defense is research. Scammers are always coming up with new ways to trick people. You can avoid some of this by sticking to reputable and popular sites. If the website feels sketchy, then stay far away. The other is to track where the NFT came from and who—if anyone—owned it before you.
The scammers might make fake lines of verification. In the art forgery world, this is called a “provenance trap.” So, the best option is to trace the lines of ownership as best you can. Find how it connects back to the creator and make sure it’s the real deal. This is both for your protection and so the creator gets the pay they deserve.
And that’s something I think everyone wants. NFTs are an exciting and expanding way for artists to create unique works and monetize their talents. We’re seeing more and more styles of art becoming NFTs or connecting with them. Video clips, digital paintings, even things related to movies are given forms on the blockchain. We here at the Scam Logs want to give you the means to explore this burgeoning artistic side of crypto more safely and enjoy its creations.