How to spot fake NFTs?

Since the popularity of NFTs has grown and everyone can profit from this kind of asset, plagiarism and scams have become a rising problem. So, people started to ask: how to spot fake NFTs?

According to research, between July 2021 and July 2022, over $100m worth of NFTs were publicly reported as having been stolen through scams; on average, the scammers made $300,000 per scam.

In NFT marketplaces, there are regrettably numerous phony NFTs every day, if not every minute. Scammers who try to sell customers false NFTs are always active. They just need to replicate an image that is freely available online. Thus, in this blog post, we will offer a useful advice on how to recognize a fake NFT and how to shield yourself.

Ways of spotting fake NFT collections

Check the NFT seller or artist’s legitimacy

If you believe you purchased an NFT directly from the artist, verify it by visiting their website and social media pages. Verify that the account you’re looking at is legitimate and not a scammer-created phony.

Checking the details on official websites and various social media channels is usually a smart idea. If you can’t find a trustworthy source of information, another option is to look for details in reliable NFT communities.

Avoid offers that are too good to be true

Simply put, don’t put any trust in this space. Always keep in mind that it is particularly suspicious if you receive NFT offers via Telegram or Discord. They don’t send DMs to their buyers because most NFT projects follow one common rule.

Some people might even claim that you got it onto a project’s whitelist. In that case, click the block button so that you can rescue yourself.

Be cautious of false websites

Scammers create bogus websites that appear to be the official NFT project website. To make it appear more authentic, they can create bogus Discord communities and imitate the design of the original website.

You should look closely because they can also be problematic. Some bogus websites just alter the URL by one letter or digit. If you’re not careful, “Supermetaplus.com” and “Supahmetaplus.com” are nearly identical. Check the URLs twice, always!

Also, never open any links to the web that are offered to you through direct messages. Almost all of them are phishing links that, when you click on them, steal your cryptocurrency wallet information. There is nothing else you can do but cry if they get access to your wallet.

Reverse-check Google images

If you’re buying an NFT with an image, you can double-check by using Google to see whether any images similar to the one you’re buying already exist. To do this, upload the image into the search engine if you’re on a desktop. You can carry out the same check by copying and pasting the image’s link into the search field on your mobile device.

Check the transaction history and NFT metadata

Any NFT seller or owner’s transaction history can also be looked up. Go to the NFT’s smart contract and click on “Details” to discover more about the token ID, metadata status (which should either be “edible” or “centralized”), the blockchain that the NFT is on, and the contract address of the collection.

Each NFT has a unique ID, which you may use to search the marketplace archives and check previous activities in order to look for any strange behavior originating from this address. You can check the marketplace archives to see if the owner and seller are trustworthy. However, keep in mind that you will only see the activity of the account linked to the NFT and not necessarily any specifics about the owner.

Assess whether the NFT is priced properly

You’re probably not getting a good deal, but rather a copy, if an NFT artwork is intended to be worth much more but is priced very low. Verify that the price is fair, and research market rates and previous work of the artist before making a buy.

To conclude, examine the NFT’s metadata, website, creator, or artist or double-check the NFT in the Google search in order to avoid buying a fake NFT. By doing all those things, you can successfully recognize bogus NFTs and exclude them from your list of potential investment opportunities. This will shield you from the numerous NFT scams and free you up to put money into interesting projects that will benefit society. Keep yourself hungry, but try not to make any stupid mistake.

Disclaimer: The information herein is for educational purposes only and should not be considered financial, investment, or trading advice. Please conduct your own research and due diligence before making investment decisions. You understand that you are using the Information provided at your own risk.