After being tricked into exchanging valuable coins for worthless PNGs in a fraudulent exchange transaction, a Bored Ape Yacht Club (BAYC) Non-Fungible Token (NFT) holder lost many NFTs, including a “bubble gum ape”. After swapping their NFTs in an exchange called “swapkiwi”, the holder known as “s27” lost the “bubble gum ape” and matching mutants worth $5.67,000 (approximately Rs 4.29 crore). Direct NFT swaps between collectors are possible on this platform, with lower transaction fees. According to the handle 0xQuit, who shared details of the scam on Twitter, “s27” lost BAYC #1584 and two Mutant Ape variants – #13168 and #13169 – to the scammer.
0xQuit also shared a thread about how the fraud happened and ways to prevent something similar from happening to you.
Today, bored monkey holder “s27” lost his bubble gum monkey and matching mutants ($567,000 on current floors) in an instant. This is a thread on how it happened and how to prevent something similar from happening to you. 1/????
— quit.pcc.eth (@0xQuit) April 5, 2022
BAYC #1584 has a rarity score of 111.99 out of 10,000, indicating that it is relatively unusual, according to Rarity Tools.
The victim used swapkiwi to engage in a direct swap deal with the scammer. Swapkiwi, unlike traditional marketplaces such as OpenSea, allows direct NFT exchanges between collectors, thereby reducing transaction fees. But unbeknownst to s27, the other trader has been setting up counterfeit NFTs in exchange for s27’s genuine Bored Ape and Mutant Apes. The scammer created fake replicas using photographs of real Bored Apes and posted them on OpenSea.
The attacker took advantage of how swapkiwi showed validated NFTs, according to 0xQuit. Since the checkmark appears in the image, scammers can easily fake this verification by simply altering a checkmark on an image of a Bored Ape.
In response to the fraud, Swapkiwi tweeted that it was working on improvements to its platform.
“Please be careful when redeeming. Scammers Photoshopped a verification badge into an NFT. Always verify on opensean or etherscan. We are working on improvements,” the tweet said.
?????????? Please be careful when exchanging. Scammers photoshopped a verification badge into an NFT.
Always check on opensean or etherscan. We are working on improvements. ??????? https://t.co/awyW70SyFh
— swapkiwi (@swapkiwi) April 5, 2022
This is not the first time a BAYC NFT collector has been scammed. Due to the high value of their assets, BAYC holders and other NFT bluechip collectors are targets of such scams.