Protecting your brand on NFT marketplaces
Every business will attract scammers as soon as it is profitable enough to deceive potential customers. NFT marketplaces make billions of dollars monthly, with up to 50,000 items sold weekly. This rise in NFT sales and exchanges led to a dangerous growth in unauthorized and malicious activity targeting NFT marketplace platforms such as OpenSea or Rarible. Customers are easily tricked into buying fake NFTs, new scam types show up all the time thus making it harder to navigate these marketplaces safely.
Common Use Cases:
- Trademark infringement
- Counterfeits sales
- Cryptocurrency scams
Common Platforms Used:
- NFT marketplaces
- NFT apps
- Social media
Common types of NFT scams
Trademark infringements
The unlawful creation of an NFT that represents a brand’s name, product, or logo protected by a registered trademark.
Counterfeit sales
Many huge brands are already selling their own genuine NFTs, which are very easy to counterfeit. Scammers do not need to create a physical product or worry about shipping.
Phishing attacks
When hackers send fake links through email or social media to access customers’ digital wallets and get their personal information without their knowledge.
Pump-and-dump scams
A two-step scam where scammers first inflate the price of an NFT by buying a large amount of it. Once the price has increased they sell it, or dump it, and disappear leaving the investors with a worthless asset.
Rug pull scams
A rug-pull refers to a scam where hackers promote an NFT but pull out after receiving enough funds from investors.
Bidding scams
Happens when scammers resell their NFT by being the highest bidder. Once they receive the highest bid beside theirs, they switch out the cryptocurrency for one of a lesser value.
NFT ShieldTM
Protection from copyright and trademark infringements in NFTs
3 months free
Get NFT Shield™ free for 3 months
Being scammed because of your favorite celebrity? Watch out, it’s possible!
Celebrities have been used as shortcuts for brands and products to expose themselves to bigger crowds for years and years. Got a new sporting equipment? Why not pay Tom Brady to promote it to his audience of millions? Why not harness Paris Hilton’s reputation to easily add value to a new brand?
It is not different when it comes to new technologies, specifically NFT. This hot trending market is no different when it comes to celebrities. There are quite a lot of celebrities involved in producing and selling their own NFT lines. From Kim Kardashian to Mike Tyson, everyone wants a piece of the action.
BrandShield scanned major NFT marketplaces searching for celebrity-related NFT scams, and the results are amazing. Who would be the most popular celebrity to use on NFT scams?
NFT Scam Damages
NFT scams hurt innocent NFT buyers and the brands themselves. Some of the consequences to the brands:
Revenue
loss
Buying fake NFTs creates a direct loss of a genuine product (NFT or not), and future deals by those scam victims.
Reputation
loss
When a brand is unknowingly used in a scam, it is associated with this bad experience and the brand will lose some of its reputation.
Customers
leaving
Unfortunately, if you leave your brand unprotected, you will lose some of your loyal customers, being afraid of being scammed again or just feeling insecure about it.
Stolen
assets
You might find your product or NFT asset stolen after suffering a phishing attack. Anything paid with cryptocurrency, once lost, is untraceable.
Unclear market
presence
When your logo, image, or slogan is found on different marketplaces, it makes it confusing for potential customers to know whether or not you actually a part of the NFT business.
NFT scams data you need to know
$21B
Made in NFT sales in 2021.
90%
Of NFT owners have experienced a scam.
$14B
Stolen by crypto scammers in 2021.
Be in Control
Gain full control by learning what is out there and what is harmful for your company.
Advanced Anti-Phishing
BrandShield’s Anti-phishing dashboard includes innovative features like Website Duplication Detector, automated takedown notices, blacklists and more.
Enforcement Experts
Experienced and knowledgeable enforcement managers analyze your company threats to determine efficient course of action.
Logo Recognition
Cutting edge technology developed by BrandShield locates logos within graphic items.
Marketplaces Monitoring
BrandShield monitors hundreds of marketplaces including major NFT trading platforms to efficiently detect and remove counterfeit goods.
Reports & Statistics
Periodic and other detailed reports with monitoring, detection and enforcement activities.
Some of the companies that work with us
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We’re always looking to stay on top of changes and trends happening with social commerce, and the increasing interest among consumers to own digital work and take part in the metaverse. BrandShield has been a key strategic partner for us as we look to secure our ecosystem of products and trademarks in the digital world and build another layer of protection for our brand from impersonators and ongoing copyright infringements.”
Morten Serup
Senior Director of Brand Protection
