How to Avoid Solana NFT Scams: 7 Fraud Patterns

As the NFT market has grown, scammers have increased alongside it. Every year, countless people lose assets to NFT scams. This guide explores the 7 most common scam types and explains in detail how to identify and avoid them.

Why Scams Are Prevalent

The NFT market is an attractive environment for scammers. Transactions are anonymous, and blockchain transactions cannot be reversed. Additionally, many participants are vulnerable due to unfamiliarity with the technology.

The best way to avoid scams is education. Knowing common scam patterns helps avoid most fraud.

Type 1: Phishing Sites

Phishing is the most common and effective scam method.

Scammers create fake sites that look identical to famous marketplaces like Magic Eden and Tensor. They’re nearly indistinguishable except for slightly different URLs. For example, they make magiceden.io look like maglceden.io.

When you connect your wallet on a fake site, it requests approval for malicious transactions. Approving this drains all assets from your wallet.

Prevention methods include always accessing sites through bookmarks. Avoid access through search engines or links. Double-check URLs when connecting wallets. Reject unfamiliar transaction requests.

Type 2: Fake Minting Sites

Scams disguised as new project minting.

Scammers create fake projects with names or art similar to famous projects. They spread minting links on social media, prompting visitors to send SOL.

Or they distribute fake minting links before actual project minting. If you access without verification in a hurry, you lose assets.

Prevention methods include always verifying minting links on official Discord or Twitter. Minting links coming via DM are 100% scams. Research project information thoroughly before minting.

Type 3: Rug Pulls

A rug pull is when project teams disappear with investment funds.

After the project team collects funds through minting, they disappear without fulfilling promised roadmaps. They close Discord, delete Twitter, and go silent.

Soft rug pulls also exist. Teams don’t completely disappear but abandon projects or make minimal effort. They maintain formal activity to avoid legal issues.

Prevention methods include avoiding anonymous team projects. Verify team members’ identities and backgrounds. Be wary of projects making unrealistic promises. Only invest amounts you can afford to lose.

Type 4: Fake Airdrops

Scams using unknown NFTs or tokens that appear in wallets.

Suddenly, an NFT appears in your wallet with metadata containing a specific website address. It says to claim the airdrop. When you access that site, it requests malicious transaction approval.

Even trying to sell or transfer that NFT can make you interact with malicious contracts.

Prevention methods include ignoring unrequested NFTs or tokens. Never access those links. Don’t interact with those NFTs. If truly concerned, check from a separate empty wallet.

Type 5: Impersonation DMs

DM scams impersonating project teams or support teams.

On Discord or Twitter, they send DMs impersonating project officials. They request link clicks or seed phrase provision under pretexts like wallet problems, available rewards, verification needed, etc.

They use identical profile pictures and names as official team members, making them hard to distinguish.

Prevention methods include knowing official teams never DM first. 100% scam if they request seed phrases or private keys. Use official support channels if you need help. Utilize settings to restrict DM reception.

Type 6: Fake Collections

Fake NFT collections imitating popular collections.

They create fake collections with names or art similar to famous collections and list them on marketplaces. Unverified collections are disguised to look like official collections.

When beginners purchase thinking it’s a real collection, they receive worthless NFTs.

Prevention methods include checking marketplace verified badges. Access through official collection page links. Also check other indicators like holder count, trading volume. Suspect abnormally cheap prices.

Type 7: Social Engineering

Sophisticated scams through psychological manipulation.

After building trust on Discord servers or Twitter, they attempt scams. They act like friends, then recommend scam projects disguised as investment advice.

Or they propose fake trade deals. They suggest direct trades bypassing marketplaces, requesting advance payment or using fake trading sites.

Prevention methods include not easily trusting people met online. Avoid P2P trades and use marketplaces. Verify investment advice and DYOR (Do Your Own Research).

Response to Scam Damage

If you’ve been scammed, respond quickly.

Immediately disconnect wallet connections, and if possible, move remaining assets to a new wallet.

Perform Revoke. Revoke malicious contract permissions you’ve approved.

Warn the community. Share information so others don’t suffer the same damage.

Report the scam. Report scams to marketplaces or relevant authorities.

Unfortunately, in most cases, recovering lost assets is difficult. Prevention is the best defense.

Security Rules Summary

Never share seed phrases. It’s a scam if requested for any reason.

Always use official channels and URLs. Utilize bookmarks.

Be wary of DMs. Official teams don’t DM first.

Carefully review transaction contents. Reject if anything seems strange.

Suspect opportunities that are too good. There’s no free lunch.

Diversify assets. Don’t keep all assets in one wallet.

In the next guide, we’ll learn about Solana NFT royalty structures.