Nonfungible token (NFT) marketplaces should commit to combat fraudulent NFTs, but brands are far more responsible for protecting NFT investors, according to one industry executive.

Although marketplaces should not be negligent of the reality of NFT fraud, it’s still a must for brands to keep their audience publicly and transparently updated about any NFT offerings, Keren hinted, stating: “Brands should understand the legal implications of misuse of their image, and should take action to protect their customers across all platforms, websites and marketplaces.”

Counterfeit NFT fraud implies unauthorized replicas that are sold despite the existence and sale of an original NFT drop by its creator or authorized party.

In these cases, fraudsters utilized copyright or trademark infringements to defraud consumers, he added.

It is important to not only double-check the website of the NFT marketplace’s domain but also go for only verified NFT sellers and avoid suspicious shortened links.

The rise of NFTs and metaverse has created yet another way for fraudsters to mislead investors into falling for scams and counterfeits.
Source: Cointelegraph
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