Based on a recent report, the Federal Bureau of Investigation (FBI) has issued a warning against illicit players in the non-fungible token and crypto ecosystem who are taking control on social networking accounts and the accounts acting like legitimate individuals.
FBI Issues a Public Warning
The cautionary note emerges as the percentage of consumers whose funds have been stolen by each of these kinds of scamming schemes keeps on increasing.
The public announcement released on August 4, made people aware of “criminal actors posing as legitimate NFT developers in financial fraud schemes targeting active users within the NFT community.”
Fraudulent Posts Scam Investors
The FBI said: “Fraudulent posts often aim to create a sense of urgency, using phrases like ‘limited supply,’ and refer to the promotion as a ‘surprise’ or previously unannounced mint.”
According to the FBI, these fraudulent websites invite individuals to link their electronic wallets as a way to obtain or purchase NFTs, yet they instead link it to a fund drainer smart contract, which leads to a theft of their money or valuables.
People are Losing Money Without Connecting Wallets
Nevertheless, there are various more ways for people’s funds to be stolen. For instance, Twitter user @robbyhammz said that despite not connecting any hot wallet after accidentally clicking onto a fictitious Looking Rare NFT marketplace page, they ended up with a loss of more than $300,000 worth of NFTs.
FBI Provided Guidelines as well
In addition to the warning, the FBI provided a number of guidelines for consumers to follow in order to shield their finances from these sorts of frauds.
The cryptocurrency business continues to draw worldwide interest, drawing investors looking for rewarding prospects. In contrast, the crypto sector lost $656 million in the first half of 2023 as a result of hacks, frauds, and rug pulls. According to an analysis published by Web3 security company Beosin, 108 Protocol attacks resulted in $471.43 million damage.
However, when comparing H1 2023 to the previous year, the security firm observed a significant drop in overall loss from intrusions in Web3. In the second half of 2022, the losses were reduced to around $1.69 billion.