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The FBI Issued a Warning to Criminals Impersonating NFT Developers Who Steal Crypto and NFT Assets

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ByMarcel Bich

Aug 31, 2023
FBI Warns NFT Impersonators Stealing Assets
Marcel Bich
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This dupes NFT fans into making rash decisions without conducting adequate due research. Be careful and double-check before engaging in any transactions.

Scammers develop phishing websites that appear to be legitimate NFT platforms, tricking victims into connecting their wallets in order to make NFT purchases. This move, however, activates a smart contract that drains their crypto and NFT assets into the scammers’ wallets. 

Cyber Security Measures

Thieves use bitcoin mixers and exchanges to mask their tracks, making it difficult for law authorities to track down stolen assets. The FBI recommends NFT aficionados to use caution when engaging in NFT activities such as:

  • Before taking any action, verify NFT developers and promotions.
  • Verify the authenticity of social media profiles utilized for promotions.
  • Double-check website URLs twice to avoid clones of real websites.
  • Be wary of NFT incentive offers that appear to be too good to be true.
  • Submit any fraudulent or suspect NFT actions to the Internet Crime Complaint Center as soon as possible. 
  • Include critical information as well as the NFTHack keyword for better tracking. 

Previously, the FBI warned bitcoin owners against wallet-targeting schemes. The law enforcement organization issued a warning in March about an increase in “pig butchering” bitcoin investment scams, which resulted in losses of over $2 billion in cryptocurrencies in 2017. The FBI also issued a warning in October about an increase in schemes that steal growing sums of bitcoin from unwary investors.

Previous cautions warned of bogus prizes in phony “play-to-earn” games and shady cryptocurrency investing applications that aid scammers in stealing millions of dollars’ worth of cryptocurrencies. The FBI also reported that Americans lost more than $3 billion to investment fraud in 2022 in its 2022 Internet Crime Report. The U.S. Department of Justice seized six cryptocurrency accounts in April that included more than $112 million in bitcoin investment fraud.

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Marcel Bich

Marcel ‘s passion for the world of cryptocurrencies and his comprehensive knowledge of blockchain technology make him an invaluable asset to our team. He stays updated on the latest trends, regulations, and emerging technologies in the crypto space, ensuring that our audience receives accurate and up-to-date information.