NFT Fraud: OpenSea Rethinks Its Verification Process

OpenSea, the most popular marketplace for selling NFTs, is also a mine for scammers. The platform has decided to change things.

A stricter system for makers

Faced with the wave of fraud raging on its platform, it was only a matter of time before OpenSea responded. The arrival of the Bored Ape Yacht Club collection, which is both popular and subject to an infinite number of scams, has constantly called into question the safety of the site and its seriousness.

In order not to tarnish its reputation, OpenSea eventually decided to address the issue by tweaking the verification process. The transformation takes place at two points: the verification of creators and the acquisition of badges, as well as the automatic detection of fraudulent copies.

The makers of unverified non-fungible tokens and their collections will thus be able to benefit from a badge, as the conditions of participation have been expanded. To take advantage of this, you should nevertheless offer quality content and above all wait until the marketplace invites you to sign up.

For starters, any account with a collection with a volume of at least 100 ETH will be asked to request verification. We plan to expand eligibility soon and introduce additional factors, such as presence and activity on Twitter and Discord, when determining eligibility for verification.

Excerpt from OpenSea’s press release on the change to the validation process

Source: OpenSea Twitter account

OpenSea hopes to soon be able to extend its badge system to all users, which means that every registrant will have to submit to verification.

Verification on Opensea: a double-edged sword for platforms

OpenSea’s large-scale authentication strategy is defined in the continuity of security that plays on the good faith of creators. Investors are advised to turn to a collection with a badge to avoid possible fraud and thanks to the extensive badge system, each maker will benefit from a quality guarantee that should enable them to sell. Buyers should be able to acquire their favorite work without fear of fraud.

However, badges can also be easily forged. The system could be further developed, for example by verifying the identity of creators as exchange sites do with their customers, as the authentication criteria remain light for the time being:

When users click on the banner, they are redirected to the “Profile Settings” page with the four account verification requirements:
– A profile picture
– A username
– A verified email address
– A linked Twitter account

Excerpt from OpenSea’s press release on the change to the validation process

Therefore, to discourage scammers and other less serious users, OpenSea relies on its creators’ funds and the volume of collections to flush out potential fraud: a passionate creator will have no qualms about spending Ethereum on publicity, while a scammer will be more reluctant. will be to grab the wallet to publish fake NFTs. The marketplace system should therefore work unless the scammers decide to graciously submit to it in hopes of making even more money off the backs of their victims.

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