NFT fraud protection falls on brands and not marketplaces: explain industry execs


  • Industry executives say brands hold responsibility for NFT fraud protection.
  • NFT investors became victims of millions worth of NFT scams.
  • French police employ Twitter sleuth’s research to grab hold of scammers.

Brands that issue NFTs should hold the greatest responsibility to protect themselves and their potential investors from fraud, an NFT security executive suggested. 

In these cases, fraudsters utilized copyright or trademark infringements to defraud consumers, he added. 

One of the ways to eliminate NFT fraud is for platforms to encourage more reporting of fake listings when a suspicious listing is discovered. “Ideally, brands and marketplaces should work together on solutions,” Keren said, “attacking a problem from multiple angles is the fastest way to an effective solution” he added. 

For instance, the French police use Crypto Twitter sleuth’s research to catch scammers.

Despite encouraging brands and marketplaces to do their best to protect NFT investors, BrandShield’s CEO emphasized that it’s still important for consumers to do their own research while investing in NFTs. It is important to invest and then invest in verified NFT sellers and avoid suspicious shortened links. 

Work to verify an NFT before purchasing because by the time marketplaces catch on to these abuses, it’s oftentimes too late, Keren added. 

According to data from crypto risk management firm Elliptic, NFT investors became victims of more than $100 million worth of NFT scams and thefts related to NFTs in a period from July 2021 to July 2022.