Bansky NFT scam, which cost $336,000 or £242,000, might have happened because of the artist's negligence. The fraudulent activity occurred last Tuesday, Aug. 31. Security experts explained that the scammers advertised a blockchain artwork on the popular website, claiming that it is Banksy's first NFT or non-fungible token.  

Banksy Fake NFT Thousand-Dollar Scam Update: Cybersecurity Expert Claim Blockchain Website Ignores His Warning About a Vulnerability
(Photo : Photo by Patrick Lux/Getty Images)
Participant hold their laptops in front of an illuminated wall at the annual Chaos Computer Club (CCC) computer hackers' congress, called 29C3, on December 28, 2012 in Hamburg, Germany. The 29th Chaos Communication Congress (29C3) attracts hundreds of participants worldwide annually to engage in workshops and lectures discussing the role of technology in society and its future.

The fake blockchain masterpiece on the world-renowned graffiti artist's official website was sold to a British collector. However, it was later found out that the thousand-dollar NFT was actually counterfeited. 

On the other hand, Sam Curry, a cybersecurity expert, claimed that the scam took place because Banksy ignored his warning. He added that the official website of the English-based modern-day painter could have a weakness on the social network Discord. 

"I'd clicked one and immediately saw it was vulnerable, so I reached out to Banksy's team via email as I wasn't sure if anyone else had," said Palisade's founder and security consultant. 

Banksy's Negligence Leads To NFT Scam? 

According to BBC's latest report, NFTs are artworks that can be tokenized to create a digital certificate of ownership, which users receive when they buy or resell the blockchain product. 

Banksy Fake NFT Thousand-Dollar Scam Update: Cybersecurity Expert Claim Blockchain Website Ignores His Warning About a Vulnerability

(Photo : Photo by Sean Gallup/Getty Images)
A participant sits with a laptop computer as he attends the annual Chaos Communication Congress of the Chaos Computer Club at the Berlin Congress Center on December 28, 2010 in Berlin, Germany. The Chaos Computer Club is Europe's biggest network of computer hackers and its annual congress draws up to 3,000 participants.

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However, security experts claimed that non-fungible tokens are quite vulnerable to scams and other fraudulent schemes since they don't really provide the actual digital masterpiece or copyright. 

Now, with only one mistake of Banksy, a thousand-dollar NFT scam happened. Curry explained that the graffiti artist did not respond to his emails. The security experts even said that he tried other methods just to contact Banksy, including messaging the modern-day artist on his official Instagram account. 

Sources confirmed that the cybersecurity researcher already contacted Banksy way back on Aug. 25, which is roughly six days before the scam took place on the artist's official web page. 

In other news, CryptoPunk digital creators signed a contract with a major Hollywood agency. On the other hand, Steam received the new NFT game "MIR4".  

How To Avoid Fake NFTs

Since NFT is now becoming more popular than ever, many people are now digging deeper into this rising blockchain artwork. However, scammers are also becoming more interested in non-fungible tokens since they think that new fans are easy targets. 

If you don't want to be one of their victims, you can follow these simple tips provided by NFTCulture

  • If you are buying a bespoke edition of something, make sure it exists on the marketplace you are using before purchasing.
  • Be sure to know the accurate contract address of the piece you are buying.
  • Top-tier marketplaces do have some checks and balances in place that make it safer when purchasing art.

For more news updates about Banksy and other related topics, always keep your tabs open here at TechTimes.  

Related Article: Fake Banksy NFT Sells for £244k, Hacker Returns Money to British Collector After Sale

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Written by: Griffin Davis

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