Source: Forbes.com
URL: https://www.forbes.com/sites/lcarrel/2022/01/28/as-nft-scams-grow-in-number-nft-insurance-hits-the-market/?sh=624c33a77bcb
Title: As NFT Scams Grow In Number, NFT Insurance Hits The Market

The crypto art industry hit a market cap $2.3 billion this month across different platforms, according Finacepr.com, up from $409 million on Dec. 1, a 460% surge in just two months.

“NFT scams are becoming increasingly common in line with increased ownership and the sophistication of technology making it easier for scammers to target investors,” said Adam Morris, co-founder of NFT Club, an NFT educational site.

The scammers adapt to the changing technology and create updated versions of old grifts. A major danger is the complex world of copyright.

There’s been a surge in replica and fake assets made to look like originals, said Morris

Investors need to verify the assets because scammers copy collections and try to sell counterfeit NFTs. Prominent NFT marketplaces have reported tales of rampant counterfeiting and art theft. But even verification isn’t 100% guaranteed as the Big Daddy Ape Club investors found out.

While there are tools you can use to verify websites, the best recommendation is to stay on legitimate sites, such as NFT marketplace OpenSea.

Even so, scammers impersonate support staff at OpenSea and Metamask, a crypto wallet site, or contact users on the social media platforms Twitter and Discord. They want people to expose security phrases or send links to fake customer service websites.

#NFT #NFT Scams #OpensSea

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