The Federal Bureau of Investigation (FBI) is issuing a warning to investors saying that criminals are posing as developers of non-fungible token (NFT) projects in crypto phishing scams.
In a new public service announcement, the FBI that bad actors are depicting themselves as legitimate NFT developers to run fraud schemes on social media.
According to the Bureau, fraudsters either gain access to a real NFT developer’s social media account or create an identical one in order to trick users into connecting their crypto wallets to spoofed websites. The victims subsequently get their funds stolen and then processed through crypto mixers in order to evade detection.
“Criminals either gain direct access to NFT developer social media accounts or create almost identical accounts to promote new NFT releases. 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.
Links provided in these announcements are phishing links directing victims to a spoofed website that appears to be a legitimate extension of a particular NFT project. The spoofed websites invite victims to connect their cryptocurrency wallets and purchase the NFT.
The victims unknowingly connect their cryptocurrency wallets to a drainer smart contract, resulting in the transfer of cryptocurrency and NFTs to wallets operated by criminals.
Contents stolen from victims’ wallets are often processed through a series of cryptocurrency mixers and exchanges to obfuscate the path and final destination of the stolen NFTs.”
The FBI recommends that Americans be skeptical if well-known NFT projects suddenly start announcing new opportunities or events. The Bureau also says to make sure social media accounts aren’t fake clones and confirm any website they connect their crypto wallet to is legitimate.
