Customers of a well-known NFT seller have recently been cautioned against falling victim to social media scams, following a security breach that resulted in the loss of millions of dollars worth of virtual assets.
The Bored Ape Yacht Club (BAYC) disclosed that its Instagram account was compromised by hackers, who used it to deceive users into transferring their NFTs. According to BAYC, the hackers posted a fraudulent link to a fake version of the BAYC website, offering a fake Airdrop that required users to sign a ‘safeTransferFrom’ transaction. This led to the unauthorized transfer of assets to the scammer’s wallet.
The lure for users was the promise of being able to mint “land” in BAYC’s Otherside metaverse project by clicking on the link. As soon as the hack was discovered, BAYC took immediate action to alert their community, remove links to the compromised Instagram account, and attempt to regain control of the account. Two-factor authentication was already in place, and security measures were being followed, raising questions about how the hackers gained access.
Reports suggest that over 50 NFTs were stolen in this fraudulent scheme. A spokesperson for Yuga Labs, the owner of BAYC, stated that the estimated losses included four Bored Apes, six Mutant Apes, three BAKC, and other assorted NFTs valued at approximately $3 million. Efforts are underway to reach out to affected users and address the situation.
The NFT industry has been increasingly targeted by scams and fraud attempts. A recent report highlighted a 400% surge in NFT-related fraud in 2021, underscoring the need for users to exercise caution and vigilance when engaging in NFT transactions.
As the popularity of NFTs continues to grow, it is essential for users to prioritize security measures and stay informed about potential risks in order to protect their valuable digital assets. Stay updated on the latest developments in the NFT space and be wary of suspicious links and offers on social media platforms to safeguard against falling victim to scams.