US Treasury Warns of New Scam

US Treasury Warns of New Scam

( – The Treasury Department released a report on May 29 that appraised the risk associated with the use of non-fungible tokens (NFTs) in illegal finance. The results indicated a lack of appropriate obstacles to prevent their illegal use in scams or fraud.

The appraisal concludes that NFTs are highly susceptible to use in fraudulent financial scams. There is insufficient cybersecurity protection on the platforms used by NFTs, which makes it accessible for criminals to embezzle digital assets.

Scammers not only use NFTs for their illegal, fraudulent ventures, but they also have the ability to disappear with their ill-gotten gain once the scam has run its course. They also manipulate the market, engage in fraudulent chargebacks (a return of money to a payer of a transaction), and frequently engage in money laundering, according to the Treasury Department.

The Treasury added that the laundering is easier to perform because there are no customer ID requirements, which makes the illegal transactions easier.

It used to be assumed that larger organizations, such as narcotics professionals, terrorists, and underworld mob bosses, would also use the NFT platform for their illegal transactions because of its ability to hide those transactions. However, the Treasury determined that ordinary internet scammers are the primary users of this platform.

According to the report, scammers and thieves employ various fraudulent practices on the NFT platform to facilitate illegal transactions. The more organized and sophisticated terrorists or criminal enterprises tend to ignore NFTs. Even though the potential for them to use the NFT platform in their schemes remains, there have only been a few instances where the Treasury has found that they have been successful.

As a result of the report’s conclusion, the reality of using NFT platforms for illegal ventures doesn’t seem as dreadful as it could be. Despite this seemingly positive development, the Treasury Department has reiterated the need for action to prevent the potential escalation of use in illegal and fraudulent activities.

Copyright 2024,