NFT Scams are on the Rise: How to Spot and Avoid Them?

The popularity of cryptocurrencies gave rise to NFTs. Although launched in 2014, it was relatively new to the market; it saw a huge demand and popularity in 2021. Regardless, it saw a massive decline in early 2022 and continued well into 2023.

One of the many reasons for its downfall was due to rampant NFT scams. Scammers sold several fake NFT projects, stealing several million. Since then, many have lost interest in it.

As of 2025, NFTs are gaining popularity, and it is in your best interest to understand how to spot NFT scams and what the NFT scam warnings are. Since a single NFT is worth thousands of dollars, deciphering an authentic one from a fake one is important.

There are several fake NFTs flooding the crypto market, and if you intend to come across an NTF investment opportunity, then this article will prove useful.

Table of Contents

What are NFTs?

NFTs, or non-fungible tokens, are a digitized version of art. They can exist in several forms, such as audio, video, or digital portrait. Some games also sell virtual goods or in-game items. These are also in the form of NFTs.

What is an NFT Scam?

Scammers create worthless NFTs or steal original NFTs and sell them on fake websites, phishing links, or fake promises. Such fake NFT projects have flooded the market, and the chances of finding a fake are higher than those of finding a genuine one.

The Mutant Ape Planet NFT project turned out to be another rug pull. Developer Aurelien Michel was charged for allegedly stealing over $2.9 million from buyers, abandoning the project and its promised perks once the NFTs sold out.

NFT Fraud Alert Signs to Watch Out For

If you are interested in buying NFTs and want to avoid NFT scams, then follow these precautions:

  • Most scammers do not have English as their primary language, so when they write a white paper for a fake NFT project, they are bound to make mistakes. Go through the entire white paper carefully.
  • A genuine NFT creator will have a digital footprint all over the internet. They are active on their social media platforms. If an NFT creator remains anonymous, then there is a high chance that a scammer is involved.
  • Ensure you buy NFTs from NFT marketplace pages like OpenSea, Rarible, and so forth. Scammers sell NFTs on a fake marketplace with an altered URL.
  • Go through the transactional history; every subsequent seller will have their username in it.
  • Use the blockchain explorer and paste the contract address. Verify if it is authentic. Each NFT has a specific ID.
  • Reverse image Search the NFT on Google to check for theft. If it sells at a cheap price, you can be sure it's a scam.

How to Avoid NFT Scams?

You can take these NFT fraud prevention tips while you wish to invest in NFTs.

  • Do your own research before you wish to invest in NFTs. Check the authenticity of the seller and also the product they have to offer.
  • Buy the NFT directly from the official website, and if the same product is being sold on a different website, then check the contract address on a blockchain explorer.
  • Cross-check the price of the NFT you are interested in, and if the price is comparatively cheap, then you can be sure it's either stolen or a fake one.

Where to Report NFT Scam?

When you realize that you have fallen victim to an NFT scam, you need to act quickly. Take these steps before you report to the higher authorities.

  • You make a report that includes the hashtag, screenshot, and all the other correspondence shared by the scammer. Write down the URL and the marketplace from which you bought the NFT from the scammer.
  • Contact your local law enforcement agency and attorney to file a case against the scammer. Do not forget to contact your financial institutions, like banks and credit rating agencies, and file a report.

The above-mentioned steps remain the same for all countries. We have mentioned country-specific steps below:

  • For US Citizens: Contact the Internet Crime Complaint Center, the Federal Trade Commission, and reputable and trusted NFT marketplaces, and file a report.
     
  • For UK Citizens: Contact Action Fraud, National Cyber Security Center, and Advertising Standards Authority, and file a report
     
  • For Canadian Citizens: Contact the Canadian Anti-Fraud Centre and file a complaint.
     
  • For Australian Citizens: Contact the Australian Cyber Security Centre and National Anti-Scam Centre -Scamwatch, and file a report.
     
  • For the Rest of the Western Countries: Contact Europol's European Cybercrime Centre and file a report. 

Alternatively, you can always seek professional and trusted help from Financial Options Recovery, a crypto recovery expert with the sole aim of recovering victims' stolen NFTs. We help you recover digital assets from crypto scams by evaluating your case and analyzing it efficiently.

Be Aware, Be Safe: NFT Scams Are Evolving

The objective of this article is to raise awareness about NFT scams, including what they are, how to avoid them, and where to report them. Visit us to learn more about several scams involving cryptocurrency. By 2025, online games are using NFTs more and more, which encourages players to purchase, invest in, and sell them, a process known as NFT tokenomics.

FAQs (Frequently Asked Questions)

NFTs (non-fungible tokens) are unique digital assets that represent ownership of digital art, music, video, or in-game items. People invest in them as collectibles or speculative assets, hoping their value will grow over time.

NFTs, or non-fungible tokens, are digital assets that represent ownership of unique items such as artwork, music, or in-game collectibles. Their popularity skyrocketed in 2021 due to the crypto boom, celebrity endorsements, and digital art sales.

Not all NFT marketplaces are secure. To reduce risk, stick to reputable platforms like OpenSea, Rarible, or Foundation. Always double-check the URL, contract address, and creator information before making a purchase.

No, never trust NFT links from ads or DMs. Always verify the official website or use trusted marketplaces.

Yes, but with caution. While the NFT market is recovering in 2025 and evolving through gaming and digital ownership models, scams still exist. Do your research, verify contracts, and always double-check before investing.

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