Everyone loves getting free stuff, and in the world of cryptocurrencies and NFTs, there often comes an opportunity to earn free tokens or digital collectibles when a new project is being launched. This is done as a marketing ploy to get more users on board and promote the project.
However, scammers make the most of such opportunities to lure unsuspecting victims into signing up for fake tokens or NFT airdrops. They promote a fake crypto project, with a fake website, and claim to offer more value in exchange for a certain value in major digital currencies like Bitcoin (BTC) and Ethereum (ETH).
The victims end up giving access to wallets to the bad actors and they take away all the funds, leaving the hopeful victim with nothing.
NFT and token airdrop scams are so prevalent that they are becoming a major issue in the industry with no clear way to stop them. As things stand, the only way to get around this is to have an understanding of how these scammers target their potential victims.
This guide aims to educate and protect you from the “airdrop scam” by helping you understand how these scams operate and taking preventive measures so that you can safeguard your investments and avoid falling victim to deceptive tactics.
What is an Airdrop Scam and How Does It Work?
The airdrop scam involves a scammer sending a fraudulent NFT to your wallet claiming to be an official collection on an existing blockchain. The scammers use bots to identify the most recent NFT transactions and send their scam tokens to those addresses.
The NFT’s image or metadata will contain instructions directing you towards a malicious website. In most cases, the victims are tempted by the promise of free tokens, high return on investment, or privileged access to allowlists for the NFT. This results in them checking out the website.
There are two methods by which Web3 hacks take place:
- Phishing: Scammers ask for the secret recovery phrase or private key to your crypto wallet
- Prompting: Asking you to sign a malicious transaction that would give them full access to your wallet. It could drain your entire wallet or balance in major assets like BTC or ETH.
How To Identify a Fraudulent NFT Airdrop?
The first way to identify whether an NFT airdrop is a scam is to ask yourself whether you were expecting a collectible in your wallet. If the answer is no, then you shouldn’t be interacting with the link or following its instructions.
The next question is whether the project is promising something that is too good to be true. If the answer is yes, then avoid the prospect at all costs because there is an extremely high chance that it is a scam.
Scammers could entice you with fraudulent temptations like:
Also note that if the link is to a website that you are not familiar with, then chances are that it is malicious and you should not follow what they say.
How to Secure My Wallet and Assets?
You must follow best practices to safeguard your crypto wallet and the assets contained within it. Some ways to go about this would be to revoke unnecessary app permissions on your device, create a new wallet if an old one is compromised, and utilize cold storage solutions to protect your most valuable crypto assets.
Avoid storing assets in hot wallets that are susceptible to attacks.
What to Do With Scam NFTs?
If you have received scam NFTs, you can easily dispose of them by burning them directly in your wallet. Most crypto wallets come with a mechanism to burn all tokens. You can do this by visiting your preferred wallet’s settings page and looking for the option to burn.
You will receive some tokens in exchange for burning the fraudulent NFTs.
Conclusion
Protecting yourself from NFT airdrop scams requires vigilance, caution, and staying informed at all times. Whichever NFT or token you are excited about, it is always recommended to take precautionary measures before collecting them.
You can minimize the risk of falling prey to these scams by recognizing the signs of fraudulent airdrops, refraining from clicking malicious links, and taking measures to protect your wallet and assets.
Always do your due diligence and prioritize the safety of your NFTs and crypto assets before making any investment decision in the crypto world.
More Articles: Top Cryptocurrencies On The Cardano Blockchain By Market Cap
