NFT OTC Scams Surge as Trading Volumes Rise Globally

The NFT market is experiencing a resurgence, with trading activity increasing globally as buyers and sellers seek alternative avenues beyond public marketplaces. Over-the-counter (OTC) trades—private transactions where parties negotiate directly—have gained popularity for their flexibility in securing specific assets. However, this trend has coincided with a sharp rise in fraudulent activities. Scammers are exploiting the less regulated nature of OTC trading to manipulate users through tactics like phishing, fake platforms, and deceptive negotiations [1].

OTC trades allow buyers and sellers to bypass traditional marketplaces by setting custom prices or swapping assets. While this method offers advantages such as direct communication and tailored deals, it also introduces significant risks. Unlike public exchanges, OTC transactions lack transparency and are often negotiated in private channels like Discord or Telegram. This environment enables scammers to create fake listings or impersonate legitimate traders, luring victims into transactions on unverified platforms [1].

A common scam involves scammers infiltrating NFT communities by posing as credible participants. They gradually build trust with potential targets, offering slightly above-floor-price deals to avoid suspicion. Once a victim agrees to a trade, the scammer directs them to a malicious website or a newly created OTC platform. These sites often mimic legitimate marketplaces but are designed to drain users’ crypto wallets or steal NFTs. In 2025, similar strategies are resurfacing, echoing tactics used since 2021 that led to millions in losses [1].

To mitigate risks, experts recommend verifying all transactions through official NFT platforms rather than links provided by private messengers. Traders should confirm ownership of assets by directly logging into marketplaces and using OTC tools to ensure authenticity. Additionally, maintaining a dedicated wallet for OTC trades limits exposure; this wallet should only hold assets intended for sale, reducing the risk of losing other NFTs [1].

Red flags include urgent requests to use unfamiliar platforms or claims of technical issues with established services. Legitimate traders rarely pressure buyers to deviate from standard procedures. When in doubt, refusing suspicious offers and seeking verification through trusted channels is critical.

The growing prevalence of OTC scams underscores the need for heightened vigilance in the NFT space. As trading volumes rise, users must prioritize due diligence and leverage secure tools to navigate these high-risk transactions [1].

Source: [1] [title1NFT Scams Are Back – Here’s How To Avoid Scams In OTC Trades] [url1https://coinmarketcap.com/community/articles/688259a75a8d447a5f5325f6/]