NFT fraud: OpenSea revamps its verification process – BeinCrypto

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

A stricter system for creators

Faced with the wave of fraud raging on its platform, it was only a matter of time before OpenSea reacted. Indeed, the arrival of the Bored Ape Yacht Club collection, as popular as it is subject to an infinite number of scams, has constantly called into question the security of the site as well as its seriousness.

In order not to tarnish its reputation, OpenSea has finally decided to address the problem by modifying its verification process. The transformation will take place on two points: the verification of creators and the obtaining of badges as well as the automatic detection of fraudulent copies.

Thus, the creators of unauthenticated non-fungible tokens as well as their collections will be able to benefit from a badge since the eligibility conditions have been extended. To benefit from it, you must nevertheless offer quality content and above all wait for the marketplace to invite you to report.

To start, any account that has a collection with at least 100 ETH in volume will be prompted to request verification. We plan to expand eligibility soon and introduce additional factors, such as presence and activity on Twitter and Discord, when determining who is eligible for verification.

Excerpt from press release from OpenSea concerning the modification of its validation process

Source: OpenSea Twitter account

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

Verification on Opensea: a double-edged sword for platforms

The large-scale verification strategy adopted by OpenSea is defined in the continuity of security that plays on the good faith of creators. It is recommended that investors turn to a collection with a badge to avoid possible fraud and, thanks to the expanded badge system, each creator will be able to benefit from a guarantee of quality which should enable them to make sales. As for buyers, they should be able to acquire their favorite work without having to fear fraud.

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

When users click on the banner, they are directed to the “Profile Settings” page which lists the four requirements for account verification:
– A profile picture
– A username
– A verified email address
– A connected Twitter account

Excerpt from the OpenSea press release concerning the modification of its validation process

In order to dissuade scammers and other less serious users, OpenSea therefore relies on the funds of its creators and on the volume of collections to flush out possible fraud: a passionate creator will have no trouble spending Ethereum to publicize while a scammer will be more reluctant to get his hands on the wallet to publish fake NFTs. The marketplace system should therefore work, unless the scammers decide to submit to it graciously in the hope of making even more money on the backs of their victims.

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NFT fraud: OpenSea revamps its verification process – BeinCrypto


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