• The FBI is warning investors that criminals are posing as NFT developers in crypto phishing scams.
• Fraudsters use social media to create an urgency and invite victims to connect their wallets.
• Victims’ funds are stolen and processed through crypto mixers, making it hard to trace the path of the stolen tokens.
FBI Warns of Criminal Actors Posing as NFT Developers
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 says that bad actors are depicting themselves as legitimate NFT developers to run fraud schemes on social media.
What is a Crypto Phishing Scam?
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.
How Can Investors Be Protected?
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.
What Should Victims Do?
If you have been victimized by this crime, please report it at www.ic3.gov or call your local FBI office and file an online complaint with the Internet Crime Complaint Center (IC3).
It is important for investors and traders alike be aware of these types of scams so they can protect themselves against potential losses due financial fraudsters who use tactics such as these phishing scams when attempting steal funds from unsuspecting victims.