June 7, 2023

NFTs represent an entry on the blockchain certifying that someone owns a particular digital asset.The concept might seem inherently abstract, it boils down to this: being able to claim sole ownership of something collectible.

NFTs are a bubble that’s set to burst. Similar criticism has been leveled at the likes of bitcoin and other cryptocurrencies, with proponents saying they are the future of financial systems and critics deriding them as being little more than a Ponzi scheme in digital form.

Criminals are already on the hunt for ways to obtain the maximum possible amount of bitcoin, monero, ethereum and other valuable digital coins, as demonstrated in recent years by their love for ransomware, cryptomining and hacking into cryptocurrency exchanges and stealing all their funds.


Doppelgänger stores: Spinning up lookalike stores online is easy, perhaps backed by a domain name that looks legitimate, as a way to get users to enter legitimate credentials or payment card details. The same could happen for stores selling NFT merchandise, or for NFT-only sites. In March, Garimella says, “the number of suspicious-looking domain registrations with names of NFT stores like ‘rarible,’ ‘opensea’ and ‘audius’ increased nearly 300%” compared to prior months.

Counterfeits or knockoffs: On the internet, no one knows a seller’s digital certificate of ownership for a piece of artwork that looks as if it was done by Banksy isn’t legitimate. Buyers may get caught out by digital goods that suggest they’re one thing but turn out to be another. “Counterfeit and real-world ‘inspired’ artwork/content will become a problem shortly,”

Fake apps: Apple iOS user had downloaded a fake app named after the Trezor hardware wallet for storing bitcoins. But after he entered his 17.1 bitcoins to track their value – which was then $600,000 – the app siphoned them off. No doubt scammers will find ways to trick NFT users via similar means, for example, by sneaking fake versions of NFT marketplace apps into app stores.

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