The world of cryptocurrencies, particularly the NFT sector, is no stranger to risks. A recent incident on the Blur Marketplace highlighted just how sophisticated scams can be in this space. One user lost NFTs worth $240,000 after falling victim to a phishing scheme. The news was revealed by a source on X (formerly known as Twitter).
The shot
The spoils of the theft were three Elementals, 40 Beanz and six Bored Ape Yacht Club NFTs. These digital goods were subsequently listed for only one $WEI each on the marketplace. To put things in perspective, the $WEI is the smallest unit of ether, making the list price practically nil.
Mechanism of the scam
This phishing scheme proved to be remarkably sophisticated. The scammers exploited a flaw in Blur’s listing procedure. By manipulating the copyright settings of high-value NFTs, they managed to divert the proceeds to their address. Using a rule that cancelled existing transactions, they kept their activities hidden. The owner was unaware that the NFTs had been put up for sale. In essence, this manoeuvre circumvented the platform’s security measures. By manipulating the NFTs’ royalty settings, the fraudster was able to bypass the platform’s restrictions on private sales. This allowed a private sale to be established, ensuring that the transaction could only be completed from their address.
PinkDrainer scam in May
This is not the first time a similar scam has come to light. A similar case was reported in May by Coinfomania, where a scammer called PinkDrainer stole three Bored Ape Yacht Club NFTs worth about $145,000 from user tatis.eth. This demonstrates a worrying trend of sophisticated scams in the NFT sector. Soliditydeveloper and auditor 0xQuitfurther revealed the scammers’ strategies. Using the bait-and-switch technique, the scam lured the victim by promising a free NFT mint event or airdrop, promoted on social media. The user, tricked, approved a transaction on a fake website.
Final considerations
The latest phishing case on Blur Marketplace underlines the risks in the cryptocurrency and NFT sector. Scammers are continuously finding new ways to exploit system flaws and deceive users. It is crucial to stay informed and take security measures to protect one’s digital assets.
Safety Recommendations:
- Verifying authenticity. Always check the legitimacy of websites before approving any transaction.
- Continuing education. Stay up-to-date on the latest scams and vulnerabilities.
- Security tools. Use wallets with advanced security features and enable two-factor authentication.
Security in the cryptocurrency world requires constant vigilance and an understanding of possible threats. Only through awareness and prevention can significant losses such as those recently suffered on Blur Marketplace be avoided.
Read More: Crypto scam, phishing on Blur Marketplace. NFTs worth $240,000 stolen
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