Online Scammer Returns £240,000 to Art Collector Duped in NFT Fraud
An art collector who fell victim to an online scam involving a non-fungible token (NFT) has had the £240,000 he spent returned by the fraudster, as reported by the BBC.
How the Scam Unfolded
The collector, who chose to remain anonymous, was lured into purchasing the NFT after receiving a tip from an anonymous individual in his Discord community. The tip led him to the website of renowned British street artist Banksy, which had recently launched an NFT page. On this page, a link directed him to an auction site selling an NFT titled “Great Redistribution of the Climate Change Disaster.”
Unbeknownst to the collector, the link he clicked on was maliciously inserted by the scammer. This led him to an auction site where he ended up bidding significantly higher than other participants to secure the token. After sending the funds via Ethereum, he realized that the transaction might have been a scam.
The Unexpected Turn of Events
In a surprising turn of events, the fraudster returned all the money to the collector, with the exception of a £5000 transaction fee, on the same evening of the incident. The collector expressed gratitude for the unexpected refund, attributing it to the press coverage of the hack and his efforts to track down the scammer on Twitter.
Reflecting on the experience, the collector stated, “I feel very lucky when a lot of others in a similar situation with less reach would not have had the same outcome.”
The Aftermath and Lessons Learned
It remains unclear how the scammer managed to hack Banksy’s website to insert the fraudulent link. A spokesperson for Banksy confirmed that the artist has not created any NFT artworks.
NFTs, which serve as proof of digital ownership stored on a blockchain, have become a target for cybercriminals seeking to exploit buyers. ESET cybersecurity specialist, Jake Moore, emphasized the importance of purchasing from verified sources and exercising caution when dealing with NFTs.
“Scammers are adept at manipulating individuals, and the unique nature of NFTs makes them susceptible to abuse. Buyers should remain cautious and skeptical, especially during the early stages of NFT adoption,” Moore cautioned.
As the world of NFTs continues to evolve, it is crucial for buyers to stay vigilant and informed to prevent falling victim to fraudulent schemes.