Scams are a common occurrence in the crypto ecosystem. NFTs are no different.

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After a non-fungible token (NFT) selling a cybersecurity exploit and a NFT marketplace getting hacked, another common specter of the cryptocurrency world has taken root in the NFT ecosystem – scams.

According to new research out today from Bolster, a deep learning-powered fraud prevention platform, five areas of scams or frauds are booming along with the NFT bubble. These include replica NFT stores, fake NFT stores, counterfeit or fraud NFTs, fake airdrops and NFT giveaways, and social media scams.

“Cryptocurrencies and NFTs have attracted the attention of cyber criminals,“ said Bolster CTO and co-founder Shashi Prakash in an email. “Anybody who is participating in these markets must be super vigilant because there are very few protections for people who get scammed.”

The NFT scams that mimic the real thing

The new research from Bolster highlights the explosion in volume and reach of scams alongside NFTs’ rapid rise to prominence.

For example, replica stores, a well-honed tactic in the world of online fraud, are regularly spun up to look exactly like legitimate websites. Scammers generally try to grab users’ login credentials or credit card details. In March, Bolster found the “number of suspicious-looking domain registrations with names of NFT stores like ‘rarible’, ‘opensea’, and ‘audius’ have increased nearly 300%” when compared to previous months, according to a blog post accompanying the research.

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