Online scams have reached the lucrative world of non-fungible tokens—but a group of tech sleuths are fighting back against would-be scammers.
The collectible, digital assets are skyrocketing in popularity by providing a secure trading platform for collectors and investors.Spend enough time online, and you're sure to run into scammers who try to steal your money by asking you to confirm your credit card information or sign up for fake PC protection plans. Now, online scams have reached the lucrative world ofFinancial crime specialist and crypto expert Nik Horniacek fell for his first NFT scam in December.
MORE: Not just for artwork, NFTs are being used by political candidates to raise money, attract young supporters According to the report, last year sellers made $8.9 million from the sale of NFTs"to unsuspecting buyers who believe the NFT they're purchasing has been growing in value." In March, the DOJ brought its first NFT case when it charged two defendants with executing a million-dollar fraud scheme after they promised investors the benefits of an NFT collection called Frosties, then allegedly shut down the website and transferred away all the money they received from the sale of the tokens. According to the complaint, the defendants were preparing to launch a second set of NFTs that was anticipated to generate approximately $1.5 million in cryptocurrency proceeds.
Another reason that digital assets like NFTs make for dangerous scams is that there's no entity regulating transactions -- so funds can be instantly moved across borders, without any monitoring, a law enforcement official told ABC News.
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