Common NFT Scams to Avoid: Protect Your Collectibles in 2025

Hackers, catfishers, and opportunists are a major problem in the NFT community.

Research shows that losses from crypto and NFT frauds soared over 45%, hitting $5.6 billion in 2023. This increase signals an alarming trend: insecurity, fraud, and scams are rising. This leaves many investors wondering, “Can we ever truly feel safe in the NFT space?” 

Here’s how to avoid the most common NFT scams and highlight strategies for protecting your digital collectibles in 2025.

But what are NFT scams?

NFT scams are deceptive schemes fashioned with one goal: to steal from NFT investors. They use various strategies to target individuals and steal their hard-earned money. 

The stats above indicate that NFT scams have been quite prevalent in recent years, with millions, perhaps billions, being lost. But why?

Unlike traditional markets, the NFT space operates without strict regulations and oversight. Without the eyes of regulators, bad actors can thrive in this space. The anonymous nature of blockchain transactions provides a route for scammers to thrive. Coupled with the high value of non-fungible tokens, these factors make NFT fertile ground for fraud. 

Key Takeaways: Common NFT Scams

• NFT rug pulls, phishing, counterfeits, and pump and dump are among the major scams associated with the NFT space.
• Spotting fake NFTs involves looking into the details associated with the asset in question
• Proper research, wallet security, and using trustworthy sites are among the best ways to avoid NFT scams.

Common NFT Scams to Watch Out For

The rapidly expanding NFT space has become a hotspot for innovation, but it has also attracted scammers eager to exploit unsuspecting investors. Here are the most common scams in the NFT ecosystem and how they work:

Fake NFT Projects (NFT Rug Pulls)

First among the most common NFT scams is fake NFT projects, popularly known as rug pulls. 

These projects are designed with one single goal: to lure investors with the promise of high returns. However, they often fail to deliver on these promises.

Fake NFT projects are often products of scammers who launch them with massive claims of future gain. They entice the average buyer to invest early and earn massive future gains. However, after accumulating large numbers of investors, fake NFT projects often abandon the project, leaving investors with worthless NFTs.

Frosties Freeze Rug Pull ($1.3M)

The Frosties NFT collection launched in January 2022 with 8,888 ice-cream-themed NFTs priced at 0.04 ETH each. Promising perks like merch and a longevity fund, the project sold out quickly, netting 335 ETH (~$1.3 million). Hours later, the website and Discord vanished, leaving buyers with nothing but digital art. In March 2022, the Department of Justice arrested the founders, marking the first NFT rug pull bust.

Avoid by: Look into the team behind the NFT collection or cryptocurrency. Are they doxxed? What is their track record? Do their promises seem believable? Are they honest, open and transparent with the community? Are their communications too focused on potential financial gains?

Imposter Websites and Links (Phishing Attacks)

Imposter websites and links primarily come under the umbrella of phishing attacks. These attacks are among the most pervasive scams in the realm of the internet.

So, how do they occur?

First and foremost, scammers/attackers develop web links mimicking the appearance or even URL of popular NFT marketplaces. In the NFT space, marketplaces like Rarible, Magic Eden, and OpenSea have already earned the respect of thousands of users. Now, the attacker creates a web page that completely mimics the appearance of such trusted marketplaces.

Secondly, the scammer sends their victim a link, perhaps via email or SMS, containing a malicious link. On clicking the link, the victim is directed to the fake web page, where they add their wallet details. This gives scammers complete access to the victim’s wallet. 

For instance, in July 2022, Axie Infinity was hit with a spear phishing attack that siphoned $540 million worth of assets. A user was sent an email containing a link, which included a PDF download. Upon download, malicious software was installed, granting attackers access to private keys.

Avoid by: Visiting the NFT website directly, using a known or trusted link. Fake versions of popular tools, services, and marketplaces are common – often with a misspelling that’s difficult to notice at a glance.

Pump-and-Dump Schemes

Another scam popular in the world of crypto and NFTs is pump-and-dump schemes. These involve coordinated efforts to inflate the prices of NFTs or collections. 

How does it happen?

A scammer or a group of scammers work together to create a token or even generate artificial demand for an existing NFT. Scammers often do this through massive social media hype or even fake news of sales. The general idea is to generate massive interest in the project, causing a sudden surge in demand. 

As the prices increase, the profits for the scammers who bought NFTs at very low prices increase. Eventually, the scammers dump all their tokens at peak prices, causing a massive price crash. 

So, what happens next?

Investors who purchase the tokens at inflated prices will eventually suffer massive losses as the prices of the asset plunge, leaving them with worthless tokens.

BitConnect Pump and Dump

BitConnect, a crypto lending platform, promised massive returns to investors, which it fueled through aggressive marketing and hype. The price of its token, BCC, skyrocketed as more people bought in, peaking at over $400 in late 2017. However, in January 2018, BitConnect abruptly shut down its lending platform and exchange, causing the token’s value to crash by over 90%. Investors lost millions, making it one of the largest pump-and-dump schemes in crypto history.

Avoid by: Checking the data of the NFT collection or cryptocurrency. Is a large amount of the supply held by just one, or a small number of wallets? Is there any news that would spurn trading activity or just vague positivity? Are the comments on the social media posts from real users, or from bots? Always verify with a second party or platform.

Counterfeit NFTs

NFTs are designed as unique digital certificates or works of art. However, in some cases, a creator may decide to create a counterfeit NFT, maybe plagiarized artwork. Despite being fake, this artwork is listed on marketplaces as an authentic piece.

How does it happen?

Scammers look for popular trends and artists in the NFT space. They create a piece of NFT that mimics the actual piece but is completely fake. 

The fake Non-fungible tokens are listed on popular NFT marketplaces with misleading metadata. The scammers continue aggressively marketing their pieces on social networking platforms to court investors’ attention.

In 2021, NFT auction platform Nifty Gateway tweeted a video promoting the House of Marcial, a room full of Ai Weiwei’s famous sculptures. The problem? The Chinese artist had not endorsed the video. 

What happens when buyers purchase counterfeit NFTs?

They end up with worthless duplicates, while artists suffer from intellectual property theft and diminished trust in their work.

Avoid by:

• Buying from verified and trusted NFT marketplaces.
• Researching the artist and cross-referencing their official channels.
• Examining metadata and transaction history for inconsistencies.

Malicious Smart Contracts

Behind every Non-fungible token are smart contracts, working to automate everything associated with these assets. But what happens when the smart contract is poorly written or fraudulent? SCAM!

Scammers create smart contracts with hidden vulnerabilities and malware, allowing them to steal funds. The scammer steals funds if and when users interact with the contracts when buying NFTs. 

So, what are the signs of a maliciously written code?

• The smart contract is completely unverified
• The creators of the project are anonymous
• There are overly complex transaction requests

Before using any NFT smart contract, perform thorough due diligence.

Avoid by:

• Only interacting with verified smart contracts.
• Avoiding projects with anonymous creators or unclear intentions.
• Using tools to analyze and audit the contract’s code before engaging.

Fake Discord / Telegram DMs

Direct messages that appear to be from brands, artists, influencers, or interested buyers.

Avoid by: Never click on links without verifying the sender, ideally via a second platform. Be wary of any DM – from friends or strangers – asking you to take immediate action by clicking a link, or to complete an action to “secure your NFTs”. Discord accounts and servers are regularly compromised, so be wary of unexpected announcements or messages that express urgent action.

Fake NFT Emails

Emails that compel you into urgent action, especially if they’re unexpected.

Avoid by: Verifying the contents of the email via a second platform. Verify that the sender is from an authentic source. Never click on a link within an email – even if it is from a trusted source – without first knowing that is it safe, and what is on the other side.

Fake Twitter Personas

Fake influencer and brand profiles.

Avoid by: Checking the @username of the account you’re interacting with. Only use links from official sources, such as a brand’s website. Many brands now post a “this is the final tweet” image below their posts on X to indicate that any other messages that appear (at first glance) to be from them are from fake accounts.

Fake NFT Artists

Stolen artwork.

Avoid by: Do a reverse-image search of any NFT art listed. Check if the artist has a track-record, is active on other platforms, or has an active presence in the NFT space. Always verify any information communicated, especially if it is emotive or invokes an urgent response.

Fake NFT Airdrops and Giveaways

Direct messages or social media posts from well-known projects or influencers discussing a free airdrop or giveaway.

Rarible Giveaway Scam

Scammers created a fake Rarible site promoting an airdrop, asking users to send 500–25,000 RARI with a promise of 5X returns. Victims sent funds but received nothing in return, losing their tokens to the scam.

Avoid by: Do not interact with any post that mentions a free airdrop or giveaway, especially if it originates from an account you would not expect. Recently, high-profile mainstream influencers and personalities have had their online profiles compromised to promote such scams. If in doubt, verify via a second platform. Do not be pressured into clicking on any link without knowing it is safe to do so.

Bidding Scams

Inauthentic bids or offers in an NFT auction. For example, an auction for a Bored Ape rises to 15 ETH. The scammer puts in an offer for 20 USDC – hoping that the seller accepts without checking the currency. A similar scam sees NFT listings taken down and immediately relisted with the decimal moved one place to the right, making the NFT 10x more expensive.

Avoid by: Verify all parts of a potential transaction. Do not be pressured into making quick decisions without checking all of the information involved. If in doubt, back out.

How to Spot A Fake NFT Project

You have read of popular NFT scams and are probably wondering how to spot a scam or fake NFT project. Below are some major considerations:

• Step one is checking the legitimacy of the creator or collection— Proper verification, for instance, a blue badge in platforms like Opensea and Rarible, is a sign of legitimacy. You also must research the creator’s name, social media and reputation. 
• Verify Metadata on Trusted Platforms— Metadata includes name, description, and attributes. Inspect this metadata with trusted platforms to determine its legitimacy. 
• Analyze the smart contract address and transaction history— Verify the smart contract associated with the NFT. Use explorers like Etherscan to check the validity. Review the transaction history to ensure it completely aligns with claims made by the project. Suspiciously low activity or irregular transactions may indicate foul play.
• Assess social media and community engagement— A strong NFT project will always have a good and engaged community. Look into the communities on Telegram, Discord and even X. How active and engaged is the community? However, it is worth noting that some projects will inflate follower counts.

Strategies to Avoid Falling Prey To NFT Scams

Here are a few high-end tips you must employ to avoid falling prey to NFT scams:

Use Trusted Marketplaces

The only secure way to avoid phishing, particularly when it comes to phishing, is to use a trusted NFT marketplace. Popular NFT marketplaces like OpenSea and Rarible have implemented strict measures to vet collections and creators. As such, you will enjoy more safety from scams. 

Furthermore, do not click on links directing you to any web pages. If, for instance, you receive an email purportedly from OpenSea, instead of clicking the link, just type the official OpenSea URL on the search page. This will protect you from phishing attacks.

Research Projects Thoroughly

Research is a critical component of securing your wallet. Before buying an NFT from any collection, you must thoroughly examine the project’s details. In your research, review the roadmap, whitepaper and background of the team behind the project.

If information such as the creator is unavailable, that is enough reason to doubt the legitimacy of an NFT collection. Look into projects that are more transparent with a proven track record. 

Enable Wallet Security

The storage of your NFT should also be very secure. Use wallets that provide strong security features to protect your high-value assets. Consider using wallets with multiple-factor authentication (2FA). 

Others opt for hardware wallets like Ledger or Trezor to bring maximum security. These security features combined will assure strong security for your assets when in storage. 

Beware of Unrealistic Offers

What about the offers that seem too good to be true? Avoid them!

If you spot promotions of NFTs trading significantly below the market value but promising high returns, stay away from them. Before entering any NFT purchase, validate the offers by doing some thorough scrutiny.

Don’t Share  Wallet Credentials

Your private keys and seed phrases are the lifeblood of your wallet. Never share them with anyone, even if the request seems legitimate. Scammers often impersonate customer support to gain access to sensitive information.

Tips To Follow if You Fall Victim to An NFT Scam

If you get scammed even after following the tips above, you must act fast to prevent more severe losses. Here are some things to do:

• Report the incident to the NFT platform
• Notify your wallet service provider
• Publicly share your experience using social networks. 

Conclusion

Our guide has explored the world of Non-fungible tokens, focusing on scams associated with these digital assets. Despite their immense potential, these assets are exposed to threats like phishing, rug pulls, pump-and-dumps, counterfeiting, and malicious smart contracts. 

Our guide has shown that researching and enabling more security features in your wallets are good strategies to protect yourself from NFT scams. 

Frequently Asked Questions

What risks do NFT investors need to understand?

NFT investors face risks such as market volatility, where the value of assets can fluctuate dramatically within short periods. Scams, including counterfeit NFTs, phishing attacks, and rug pulls, pose significant threats. Additionally, the lack of regulation in the NFT space can lead to disputes and difficulties in recovering lost funds.

What is the biggest problem with NFTs?

The biggest problem with NFTs is the prevalence of fraud and lack of accountability due to the pseudonymous nature of blockchain transactions. Issues like copyright infringement, counterfeit assets, and rug-pulls undermine trust in the market. Furthermore, the energy-intensive process of minting NFTs on certain blockchains raises environmental concerns.

What makes an NFT authentic?

An NFT’s authenticity is verified through its metadata and smart contract address, which can be cross-checked on the blockchain. Authentic NFTs are minted by legitimate creators or collections, often verified by trusted platforms or marketplaces. Buyers should ensure they purchase from the original creator or a credible source to avoid counterfeits.

Why is NFT high-risk?

NFTs are at high risk due to their speculative nature and the rapid price fluctuations in the market. The lack of regulation exposes investors to fraud and scams, while the decentralized nature of transactions often makes recovery difficult. Additionally, the market’s reliance on hype and trends can result in overvalued assets and potential buyer losses.