Enhancing Marketplace Safety Against NFT Frauds and Scams

The NFT space is the cherry on the blockchain cake at the moment. According to Nonfungible.com, sales of non-fungible tokens surged to $17.6 billion in 2021. A recent report by the NFT data company details the growth in NFT trading volumes from a mere US$82 million in 2020, representing an increase of about 21,400%.

NFT Scams

This level of growth, financial investment, and enthusiasm has attracted different classes of participants, including criminals. These bad actors target businesses because they are sure reservoirs for investor funds. These crimes are becoming more common, with another scam in excess of $1 million uncovered in March. 

In a different case, a leading online NFT marketplace reported that most of the NFTs minted with its free tools were not authentic. 

Another research by Bolster reported that copycats and replica stores often copy designs and graphic elements of legitimate NFT stores, and cloned domain registrations rose by nearly 300% in March 2021.

The evolution of security in the NFT space

Security infrastructures in the NFT marketplaces are evolving to combat the growing threats to projects in the NFT space. An innovation like REV3AL technology has the potential to impact the entire NFT sector by providing a solution that allows projects, creators, IP owners, and collectors to add secure authentication layers to their assets. 

Companies can now access REV3AL’s anti-counterfeit technology and digital copyright protection to secure their assets throughout the digital spectrum and in the real world. 

Security threats in the NFT space

The NFT industry, like any other financial system, has associated risks. However, NFT scams pose the most significant risk to any participant and are abundant in the digital space, including pump-and-dump schemes, phishing scams, fraudulent NFT influencers, duplicate websites, technical support scams, plagiarized NFTs, and outbidding scams. 

As the NFT sector grows, the number of scammers targeting businesses follows the same trend. Today, many companies, including major global brands, are entering the digital space and metaverse, with many looking to leverage NFT sales.

Securing your assets

Criminals are evolving and finding new ways to scam IP owners and projects in the NFT sector. With the level of financial investment in NFT projects, the stakes on funds and assets protection have never been higher. 

REV3AL technology offers a fresh perspective. Its multiple layers of overt, covert, and forensic encrypted protection provide the highest level of security for digital and real-world assets. 

NFT owners and collectors can self-verify by deploying efficient multi-factor authentication programs on their devices or via the REV3AL platform. REV3AL’s authentication layers are available for blockchain and non-blockchain-based assets through a physical decoder technology to interface and verify real-world assets. 

These anti-counterfeiting technologies help NFT projects to assure collectors and creators of safe and secure systems without expending substantial portions of their income on security. REV3AL’s API is also dynamic to allow NFT platforms to benefit from custom-made protection services for B2C and B2B applications.