Scammers continue to use scam websites to target NFT token users who want to claim Blur token airdrops. TrustCheck data shows that more than $300K has been taken from unwitting victims who have linked their crypto wallets to malicious sites.
Blur’s platform is new to the NFT market. Its quickly climbing user numbers and trading volume are directly linked to its airdrop incentives. Blur distributed 10% of its total token supply, with the percentage being based on users’ trading activity during its second token airdrop, which began on February 15.
Retroactive tokens were awarded to anyone who traded NFTs on Ethereum during the six-month period leading up to October 2022’s platform launch. Tokens were awarded to NFT-listing users who posted their listings prior to December 6, 2022. In airdrop round three, tokens were awarded to those who had placed bids on the Blur platform after the bidding feature was made available.
Many are looking to receive free BLUR tokens within the NFT ecosystem, primarily due to the program’s mechanics. Scammers were able to capitalize on this, by sharing fake airdrop links to scam websites. TrustCheck data shows that more than $300K has been stolen from a total of 24 scam websites since February 15th. Only a few of these websites remain functional. Users are advised to be cautious when connecting wallets.
The scam websites use smart contracts to prompt automated transactions whenever someone connects their Ether wallet. TrustCheck is able to track the total amount of stolen funds by keeping tabs on all the ETH that is taken from a wallet. TrustCheck, a tool that flags suspect transactions and internet sites, warns Web3 users about scam websites and smart contract fraud.
An NFT wash trading scandal has also brought attention to the company. These reports were in relation to users potentially using wash trading to make a profit on Blur’s token incentive scheme. Hildebert Moulie, a data scientist, suggests that Blur’s NFT trading volumes may in fact be legitimate.
Phishing attacks and phony websites are all too common on the internet, with scammers continuing to try to steal funds via Web3 functionality. A URL claiming to be that of the ETHDenver conference website was linked to a notorious phishing wallet that has stolen over $300K to date.
Scammers also used phishing websites to target FTX investors who were looking to recoup their lost funds following the collapse of the now-bankrupt cryptocurrency exchange.