Beware the Artist NFT Scam
ARTISTS: Have you received a message like this on Instagram too?
NFTs are an interesting new way to commercialise your art and worth investigating. However, be VERY suspicious of this message.
Don’t do it. It is a scam.
It appears to be a new variant of the 'Fake Check Scam'.
The fake check scam arises from many different situations (fake job scams, fake payment scams, etc), but the bottom line is always the same, you receive a check (online or in real life), you deposit a check and see the money in your account, and then you use the funds to give money to the scammer (usually through gift cards, Western Union, or cash). Sometimes the scammers will ask you to order things through a site, but that is just another way they get your money. The bank will take the initial deposit back , and any money you sent to the scammer will come out of your own personal funds. Usually the fake check deposit will be reversed in a few weeks, but it can also take several months. If you do not have the funds to cover the amount, your balance will go negative. Your bank will usually charge a fee for depositing a bad check, and your account may be closed depending on the severity of the scam.
How the Artist NFT Scam could play out
You could respond to the message and sell your work to the scammer [PLEASE DON'T DO THIS]
You could receive a check (online or in real life) for your art [THIS CHECK WILL BE REVERSED].
You deposit the check and see the money in your account.
Then you use the funds to give money to the scammer (usually paying NFT gas fees).
You go ahead and spend those funds thinking it was all legitimate [THIS IS WHERE IS GETS REALLY AWFUL].
The fake check is reversed by your bank (because they found out it is fake).
You are left with a HUGE DEBT to your bank and potentially a closed bank account.
If you have fallen victim to an Artist NFT Scam or Fake Check Scam, there are a few steps you could take as soon as possible:
1. Contact your bank and report the scam. Inform them that you have deposited a fraudulent check and request that they freeze your account.
2. Contact the company or person that the check was written from and inform them of the scam. They may be able to provide you with more information or take action to prevent others from falling victim.
3. File a complaint with your local police, Federal Trade Commission (FTC) and the Federal Bureau of Investigation (FBI).
4. If you sent money or provided personal information, take steps to protect yourself from identity theft. This may include monitoring your credit reports, placing a fraud alert on your credit file, and changing any passwords or account numbers that may have been compromised.
5. If you have any physical evidence of the scam, such as a check or envelope, keep them for the authorities.
It's important to act quickly to minimize the potential damage from a fake check scam.
Please note that we are not financial or legal advisors. We are providing this information to you after our own research efforts.
Here is an article from the FTC: https://www.consumer.ftc.gov/articles/how-spot-avoid-and-report-fake-check-scams, and here is an article from the New York Times: https://www.nytimes.com/2020/02/21/your-money/fake-check-scam.html
Remember that if something seems too good to be true, it probably is.
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