United States’ Federal Bureau of Investigation (FBI) has alerted on presence of criminals in social media. These individuals act as authorised parties in the non-fungible token (NFT) and crypto domain, as stated by Cointelegraph.
According to Cointelegraph, the existence of spoof websites has also been raised around bad actors stealing NFTs and crypto. Reportedly, these two stealing mechanisms’ usage has been on the rise which has affected many victims. Through an August 4, 2023, public service announcement, FBI highlighted “criminal actors posing as legitimate NFT developers in financial fraud schemes targeting active users within the NFT community.”
“Criminals either gain direct access to NFT developer social media accounts or create almost identical accounts to promote new NFT releases. Fraudulent posts often aim to create a sense of urgency, using phrases like ‘limited supply,’ and refer to the promotion as a ‘surprise’ or previously unannounced mint. Links provided in these announcements are phishing links directing victims to a spoofed website that appears to be a legitimate extension of a particular NFT project,” the announcement stated.
Based on Cointelegraph’s data, these scam websites ask users to give details on their wallets to conduct NFT-based transactions. However, the connection gets established with a drainer smart contract, which causes fund or asset losses. From what it’s understood, there are other methods which can cause fund losses even when there aren’t connections with an unknown website.
Moreover, Cointelegraph noted that FBI should emphasise on research and “vet any opportunity,” with regard to anonymous links around NFT drops or giveaways. Suggestions have also been laid on proper inspection of website URLs or account names to prevent impersonators.
(With insights from Cointelegraph)