The FBI has issued a warning about the growing threat of criminal actors exploiting social media platforms to deceive users in the nonfungible token (NFT) and cryptocurrency space.
The scams involve hijacking legitimate NFT developer accounts or creating fake accounts that closely resemble authentic ones to promote fraudulent NFT releases.
The fraudulent posts often utilize phrases like “limited supply” and present promotions as “surprise” or unannounced mint events, aiming to create a sense of urgency among potential victims.
The scammers include phishing links in these announcements, directing unsuspecting users to spoofed websites that appear to be genuine extensions of particular NFT projects.
Upon visiting these scam websites, victims are prompted to connect their wallets to claim or purchase NFTs.
However, the wallets are connected to drainer smart contracts, leading to a loss of funds or assets for the individuals.
While this is one common method of scamming, there are other ways in which people can fall victim to such attacks even without directly connecting their wallets to suspicious websites.
In one incident, a user mistakenly clicked on a spoof LooksRare NFT marketplace website and did not connect their hot wallet, yet they lost over $300,000 worth of NFTs.
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The fake website was even promoted as a paid ad at the top of Google’s search results, highlighting the ongoing issue with such scams on the search engine.
There have been reports of other significant losses, including someone losing $446,000 worth of Bitcoin, Ether, and Pepe tokens to a phishing link.
The scams appear to be orchestrated through a Pink drainer address, and two fake airdrop links promoted by hijacked accounts on Avalanche and QwQiao.
To protect themselves from these scams, the FBI has outlined several tips for individuals in the NFT and crypto community.
It advises users to thoroughly research and vet any opportunities, especially surprise NFT drops or giveaways, before clicking on links.
Additionally, people should double-check website URLs and account names for any discrepancies to avoid falling prey to impersonators.
In conclusion, the FBI has issued a cautionary statement to raise awareness of the growing threat posed by criminals exploiting social media to deceive NFT and cryptocurrency users.
By staying vigilant and following the recommended precautions, individuals can protect themselves from falling victim to these sophisticated scams.
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