Last month, the nft sector experienced an all-too-familiar situation; ethereum founder Vitalik Buterin had his Twitter account hacked and those responsible tweeted a link offering a free nft. This “free” nft was supposedly intended to promote a commemorative Consensys drop, but it was actually one of the many nft giveaway scams that have flooded the industry.
<img decoding="async" class="aligncenter wp-image-60800 size-full lazyload" src="https://nftplazas.com/wp-content/uploads/2023/09/Why-Are-We-Still-Falling-for-nft-Giveaway-Scams-And-How-Can-We-Not-3.png” alt=”Why Do We (Still) Fall for nft Giveaway Scams (and How Not to)?” width=”894″ height=”1024″/><img decoding="async" class="aligncenter wp-image-60800 size-full lazyload" src="https://nftplazas.com/wp-content/uploads/2023/09/Why-Are-We-Still-Falling-for-nft-Giveaway-Scams-And-How-Can-We-Not-3.png” alt=”Why Do We (Still) Fall for nft Giveaway Scams (and How Not to)?” width=”894″ height=”1024″ srcset=”https://nftplazas.com/wp-content/uploads/2023/09/Why-Are-We-Still-Falling-for-nft-Giveaway-Scams-And-How-Can-We-Not-3.png 894w, https://nftplazas.com/wp-content/uploads/2023/09/Why-Are-We-Still-Falling-for-nft-Giveaway-Scams-And-How-Can-We-Not-3-262×300.png 262w, https://nftplazas.com/wp-content/uploads/2023/09/Why-Are-We-Still-Falling-for-nft-Giveaway-Scams-And-How-Can-We-Not-3-768×880.png 768w, https://nftplazas.com/wp-content/uploads/2023/09/Why-Are-We-Still-Falling-for-nft-Giveaway-Scams-And-How-Can-We-Not-3-370×424.png 370w, https://nftplazas.com/wp-content/uploads/2023/09/Why-Are-We-Still-Falling-for-nft-Giveaway-Scams-And-How-Can-We-Not-3-760×871.png 760w” sizes=”(max-width: 894px) 100vw, 894px”/>
Vitalik’s millions of followers were asked to link their nft wallets to claim this free “prize,” but instead those who clicked had their assets stolen. In total, over $800,000 worth of NFTs were stolen and this included the iconic CryptoPunk #3983 which was sold shortly after. Eventually, Buterin got his account back and those affected have been scrambling to find ways to get their NFTs back, if anything. Unfortunately, we know from all the previous nft thefts that this will be an uphill battle.
Some, like Hollywood actor Seth Green, have been able to buy back their stolen assets, while others have finally given up. This is just the latest in a long line of nft giveaway scams that have stripped consumers of their valuable assets. But why will this tactic still work in 2023 and how can we make sure we don’t fall victim?
Why do nft giveaway scams work?
Typically, we would assume that after dozens (if not hundreds) of giveaway scams have been used to steal from nft holders in the past, we would no longer fall for them, but the truth is that these hackers are playing on the human psychology.
On some level, we all like the lure of free things. Although they probably have lower success rates these days, the ‘free iPhone giveaway’ scam is still going strong because at least some people fall for it. It’s sad but true, and nft giveaway scams haven’t been around that long, so not everyone knows how they work.
It is also very telling that hackers target reputable people with a large following, such as Vitalik Buterin. You’re less likely to click on a random giveaway link online, but if the founder of ethereum says he’s legit, you’re more likely to believe it.
<img decoding="async" class="aligncenter wp-image-60799 size-full lazyload" src="https://nftplazas.com/wp-content/uploads/2023/09/Why-Are-We-Still-Falling-for-nft-Giveaway-Scams-And-How-Can-We-Not-2.png” alt=”Why Do We (Still) Fall for nft Giveaway Scams (and How Not to)?” width=”800″ height=”380″/><img decoding="async" class="aligncenter wp-image-60799 size-full lazyload" src="https://nftplazas.com/wp-content/uploads/2023/09/Why-Are-We-Still-Falling-for-nft-Giveaway-Scams-And-How-Can-We-Not-2.png” alt=”Why Do We (Still) Fall for nft Giveaway Scams (and How Not to)?” width=”800″ height=”380″ srcset=”https://nftplazas.com/wp-content/uploads/2023/09/Why-Are-We-Still-Falling-for-nft-Giveaway-Scams-And-How-Can-We-Not-2.png 800w, https://nftplazas.com/wp-content/uploads/2023/09/Why-Are-We-Still-Falling-for-nft-Giveaway-Scams-And-How-Can-We-Not-2-300×143.png 300w, https://nftplazas.com/wp-content/uploads/2023/09/Why-Are-We-Still-Falling-for-nft-Giveaway-Scams-And-How-Can-We-Not-2-768×365.png 768w, https://nftplazas.com/wp-content/uploads/2023/09/Why-Are-We-Still-Falling-for-nft-Giveaway-Scams-And-How-Can-We-Not-2-370×176.png 370w, https://nftplazas.com/wp-content/uploads/2023/09/Why-Are-We-Still-Falling-for-nft-Giveaway-Scams-And-How-Can-We-Not-2-760×361.png 760w” sizes=”(max-width: 800px) 100vw, 800px”/>
How can we avoid them?
While these scams are ultimately designed to be as effective as possible, there are some ways to avoid becoming a victim.
- Verify: When a popular person tweets a link promising a free gift, try to confirm if it’s real. One of the main features of these scams is that they say there is only a limited time to claim the assets, leading victims to rush to click on links without investigating. Still, take a minute to check it out. Buterin’s account said that Consensys was involved in the nft crash, for example. It would be best to visit the Consensys Twitter page and website to confirm if this is true. Sometimes hackers gain access to multiple accounts simultaneously to trick victims, but this could still help.
- Separate your assets: The goal of this scam was to get people to link their nft wallets so they could steal the assets inside. One way to fix this is to have all your nft assets in a separate wallet. Ideally, you should keep your most valuable NFTs in a cold wallet and have a separate wallet exclusively for gifts and such. After all, hackers can’t steal assets from your wallets that aren’t there. As a general rule, the wallet you connect to an online link to get free NFTs should only have NFTs that you are willing to lose. Keep this risk at the forefront and you’ll be less likely to click.
- Embrace FOMO: The appeal of these scams is that everyone wants free stuff and doesn’t want to miss out on any freebies. But to protect your assets, you better be comfortable missing out on some of these so-called free NFTs. If a person who doesn’t usually host giveaways tweets a link promising a free nft, go back to step 1 and verify it’s legitimate. If you don’t find any supporting evidence, get comfortable with the idea that you might be missing something. It may be difficult, but it will be even more difficult if you end up losing your precious NFTs.
Final thoughts
We can’t stop scammers from trying to steal our NFTs, but we can take steps to prevent them from doing so. The incident with Vitalik Buterin shows how much can be lost, but also how much we can save if we take some practical steps to protect ourselves and our assets.
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*All financial/investment opinions expressed by nft Plazas come from the personal research and experience of our site moderators and are intended to be educational material only. People should thoroughly research any product before making any type of investment.
Tokoni Uti has written extensively about blockchain and cryptocurrencies for years. Her work has appeared on sites such as BTCmanager and Blockchain Reporter. She has a degree in Corporate Communication.
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