The Federal Bureau of Investigation (FBI) is warning investors that criminals are posing as developers of non-fungible token (NFT) projects in cryptophishing scams.
In a new public service announcement, the FBI says bad actors are portraying themselves as legitimate NFT developers to carry out social media fraud.
According to the Bureau, fraudsters gain access to the social media account of a genuine NFT developer or create an identical account to trick users into connecting their crypto wallets to counterfeit websites. The victims then get their money stolen and then processed through cryptomixers to evade detection.
“Criminals gain direct access to social media accounts of NFT developers or create nearly identical accounts to promote new NFT releases. Fraudulent messages are often designed to create a sense of urgency, using phrases such as “limited supply,” and referring to the promotion as a “surprise” or previously unannounced coin.
Links in these announcements are phishing links that direct victims to a spoofed website that appears to be a legitimate extension of a particular NFT project. The spoofed websites invite victims to connect their cryptocurrency wallets and purchase the NFT.
The victims unknowingly connect their cryptocurrency wallets to a smart contract, which results in the transfer of cryptocurrency and NFTs to wallets controlled by criminals.
Content stolen from victims’ wallets is often processed through a series of cryptocurrency mixers and exchanges to obscure the path and ultimate destination of the stolen NFTs.
The FBI advises Americans to be skeptical if known NFT projects suddenly begin announcing new opportunities or events. The Bureau also says to ensure social media accounts are not fake clones and any website they connect their crypto wallet to is legit.
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