A senior student at Shanghai’s Tongji University fell victim to an NFT fraud, losing around $548,000 after a phishing scam took his non-fungible token.
Niq Chen told the South China Morning Post that the NFT artwork he purchased from the well-known Doodles Collectible NFT initiative, dubbed “LuckyCot 3D,” accounted for about half the value of his total NFT assets.
Chen fell for the trap and clicked on the bogus link, and now everything is gone.
After falling for the trap, the fraudster promptly sold the NFT to an unidentified private individual. Chen requested to repurchase the NFT that was obtained illegally, but the buyer claimed that it was a “good deal.”
The Chinese government has long prohibited the trading of cryptocurrencies and NFTs within the country. The OpenSea marketplace, from which Chen purchased the NFT, is currently unavailable to Chinese users.
This, however, has not stopped the mainland’s crypto community from flourishing, as residents continue to invest in offshore NFT platforms.
NFT Scam: Falling Into The Trap
Digital art treasures are currently being sold for millions of dollars as a result of media coverage and social media conversation.
This increased demand, however, has resulted in an increase in NFT frauds, which have deceived even the most seasoned professionals in the sector.
Phishing scams are one of the most common types. They include scammers sending malicious email links that, when clicked, can be exploited to steal personal data and passwords.
According to The Verge, approximately 17 OpenSea customers have recently fallen victim to phishing assaults, resulting in the theft of approximately 250 NFTs totaling approximately $1.7 million.
The wave of attacks occurred during an update to the website’s contract system.
Another sort of blockchain fraud is a rug pull, in which the authors forsake a proposed investment along with the investor’s money.
Unafraid Of The Fraudulent Scheme
Chen is a leader in the Chinese NFT community, having courageously chosen to pursue a career in “NFT.”
Despite the substantial financial loss caused by the phishing event, the industrial design student stated that he will continue to pursue a career in the blockchain area.
“Crypto art is still a job I wish to pursue,” he explained. “I am already unable to function without the community,” Chen continued.
Due to the increasing number of attacks on NFTs and cryptocurrency investors, platforms and regulators are warning the public to deal and trade cautiously, as a return on these assets is quite improbable.
“NFT communities deserve a safe and secure space to connect and develop,” Metalink co-founder Jake Udell told Blockwork in an interview.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.