What is an NFT swap order scam and how to avoid it?
NFT swap order scams involve deceiving individuals into exchanging valuable NFTs for ones of little or no value.
These scams exploit the popularity of NFTs and the lack of knowledge among some participants.
To avoid becoming a victim, it's crucial to verify the identity of the seller, use marketplaces that have implemented security measures, and double-check the details of the swap order.
Understanding NFTs and Swap Orders
Non-Fungible Tokens (NFTs) are unique digital assets that establish ownership or verify the authenticity of specific items or content through blockchain technology. They have gained popularity, leading to the development of various exchange mechanisms, including swap orders.
A swap order is a personalized exchange option that anyone can generate for the purpose of exchanging NFTs. By endorsing a swap order, you grant authorization for the specified instructions within it, allowing the transfer of a designated NFT from your wallet.
This approach facilitates direct NFT exchanges between users’ wallets, providing the option to exchange for another NFT, cryptocurrency, or a combination of both.
What is an NFT Swap Order Scam?
NFT swap order scams are schemes where an individual deceives someone into exchanging their valuable digital item for one of little or no value.
The scam typically unfolds with the scammer fabricating a false contract, claiming it represents a high-value digital item and proposing an exchange for a less valuable counterpart. The scammer disappears once the victim sends their prized digital possession, leaving the victim empty-handed.
Scammers employ various tactics to carry out these schemes. One common strategy is to create a counterfeit contract that mimics the appearance of a trustworthy source, using logos or branding from well-known digital platforms.
How to Avoid NFT Swap Order Scams
There are a couple of ways to protect yourself from NFT swap scams.
Always verify the identity of the seller and use marketplaces that have implemented security measures.
Avoid making quick decisions under pressure and take your time to research and verify the authenticity of NFTs and offers. If an escrow service is involved, verify its legitimacy.
Always double-check the details of the swap order, including the smart contract specifics on Etherscan.
Look out for red flags such as a brand new smart contract or spelling errors in the NFT contract name.
Case Studies: NFT Swap Order Scams
In one case, an individual who frequently participated in NFT exchanges fell victim to an NFT swap order scam. The individual participated in an NFT exchange but was deceived into agreeing to receive a fake token, losing their valuable NFT in the process.
The scammer had contacted the individual directly via a private message, proposing an exchange and creating the swap order. The individual failed to cross-check the token using Etherscan, missing key opportunities to detect the scam.
Tips to Avoid NFT Swap Order Scams
To avoid falling victim to NFT swap order scams, always verify the identity of the seller and use marketplaces that have implemented security measures. Don't rush into making decisions and take your time to research and verify the authenticity of NFTs and offers. If an escrow service is involved, verify its legitimacy. Always double-check the details of the swap order, including the smart contract specifics on Etherscan. Look out for red flags such as a brand new smart contract or spelling errors in the NFT contract name.
