View source for NFT NYC Malicious QR Code Phishing

{{Case Study Under Construction}}[[File:Nycnfts.jpg|thumb|NYC NFTs Phishing Website]]NFT NYC is an annual event which happens in New York City, United States. There were widespread reports of malicious QR codes at the event in 2022. One reported scheme revolved around replacing QR codes on menus with alternative QR codes which directed the user to a malicious website promising a 25% discount if they hooked up their wallet. No specific documented cases of malicious QR codes on billboards have been recorded. There was one documented loss of a single NFT being transferred due to this attack.

== About NFT NYC ==

NFT NYC describes itself as "the leading annual non-fungible token event" and has been held annually in New York City<ref name="unnamed-10612" /> since 2019<ref name=":2" />. NFT.NYC has been a platform dedicated to amplifying the voices of the growing NFT community<ref name=":2" />. The events bring together a large community of attendees, including artists, speakers, sponsors, media representatives, and more<ref name="unnamed-10612" />. Their events are sometimes referred to as "The Superbowl of NFTs" and are designed to showcase the best ideas and projects in the NFT space<ref name=":2" />. They feature sessions covering topics such as art, music, sports, collectibles, fashion, film, brands, gaming, finance, and the legal aspects of NFTs<ref name="unnamed-10612" />. The event is supported by numerous partners, reporters, and brands, with over 100 partners, 200 reporters, and 500 brands participating<ref name="unnamed-10612" />. There are 1,500+ speakers, 2,000+ artists, and 6,000+ attendees<ref name="unnamed-10612" />. Notable brand speakers include representatives from Rarible, OpenSea, Salesforce, BNB Chain, PwC, EY, Ripple, Dapper Labs, and others<ref name="unnamed-10612" />. NFT NYC aims to provide a platform for the NFT community to share ideas, showcase art, and educate about the NFT ecosystem<ref name="unnamed-10612" />.

=== About The 2022 NFT Industry Event ===
The 2022 meet-up was the "4th Annual NFT Industry Event"<ref name=":2">[https://web.archive.org/web/20220308102339/https://www.nft.nyc/ NFT NYC Homepage Archive March 8th, 2022 3:23:39 AM MST] (Jun 29, 2023)</ref> to take place<ref name="unnamed-10602" />. The event,supported by Polygon, MoonPay, and Coinbase, was scheduled to take place from June 20th to June 23rd, 2022<ref name=":2">[https://web.archive.org/web/20220308102339/https://www.nft.nyc/ NFT NYC Homepage Archive March 8th, 2022 3:23:39 AM MST] (Jun 29, 2023)</ref>.  It also features various sponsors who play a crucial role in bringing the community together<ref name=":2">[https://web.archive.org/web/20220308102339/https://www.nft.nyc/ NFT NYC Homepage Archive March 8th, 2022 3:23:39 AM MST] (Jun 29, 2023)</ref>. Interested individuals could explore the list of speakers and sponsors on the NFT.NYC website<ref name=":2" />. The NFT.NYC website also featured media coverage and highlights from the previous year's event and over 200 satellite events<ref name=":2">[https://web.archive.org/web/20220308102339/https://www.nft.nyc/ NFT NYC Homepage Archive March 8th, 2022 3:23:39 AM MST] (Jun 29, 2023)</ref>.

== The Reality ==
With NFTs gaining widespread favourable media coverage, it's natural to think scammers would turn their sights on the plundering of incredibly fungible apes and other items of a digital nature<ref name="unnamed-10602" />.

== What Happened ==
Reports surfaced of malicious QR codes that were tricking people into having their digital assets stolen. While details remain unclear, at least one NFT holder and event participant lost an NFT from a malicious QR code.
{| class="wikitable"
|+Key Event Timeline - NFT NYC Malicious QR Code Phishing
!Date
!Event
!Description
|-
|June 19th, 2022
|Malicious Domain Registered
|The nycnfts.xyz domain is registered<ref name="unnamed-10610" />.
|-
|June 20th, 2022 12:34:19 PM MDT
|Otherdeed #95904 NFT Stolen
|The Otherdeed #95904 NFT<ref name=":0">[https://opensea.io/assets/ethereum/0x34d85c9cdeb23fa97cb08333b511ac86e1c4e258/95904 Otherdeed #95904 - OpenSea] (Jun 6, 2023)</ref> is transferred from OpenSea user "MattyZ" to an unknown attacker<ref>[https://etherscan.io/tx/0xad3fabc6b79497f5cf83f281371fe1a28d4de6ced863ed0b59ebdb0a50eada53 Transfer of Otherdeed #95904 To The Attacker - Etherscan] (Jun 6, 2023)</ref>.
|-
|June 20th, 2022 12:54:35 PM MDT
|Otherdeed #95904 NFT Resold
|The Otherdeed #95904 NFT<ref name=":0" /> is resold by the attacker to OpenSea user pandooo for 2.660 ETH<ref name=":1">[https://etherscan.io/tx/0x747b4879dbf6b074b92b62854dc103472b39dfcc28fb85c7015e264910d0f6a3 Sale of Otherdeed #95904 NFT For 2.660 ETH]  (Jun 6, 2023)</ref>.
|-
|June 21st, 2022 7:01:00 AM MDT
|NFTNYC Billboard Takeover
|The NFT NYC event is well underway, with reports of a "Times Square Billboard Takeover" which is displaying NFTs on a large billboard in Times square<ref name="unnamed-10604" />. The main event of NFT NYC is reportedly not until 3 PM<ref>[https://twitter.com/MrMauriceFoggy/status/1539267907011723265 MrMauriceFoggy - "I'm NY now, who wants to chill until the event at 3" - Twitter] (Apr 5, 2023)</ref>.
|-
|June 21st, 2022 10:08:00 AM MDT
|GammaCounter Posts Warning
|A warning is shared to Twitter, with a screenshot from a Discord channel<ref name="unnamed-10603" />.
|-
|June 21st, 2022 7:07:00 PM MDT
|Several Reports Of Drained Wallets
|Twitter user PRD_ALPHA posts on Twitter about "several reports wallets being drained" and recommends not to "scan billboard QR codes or flyer QR codes"<ref name="unnamed-10609" />.
|-
|June 21st, 2022 9:53:00 PM MDT
|Peckshield Reports Phishing Site
|A Peckshield report is generated on a nycnfts phishing website. This Tweet also includes a reference to an NFT Otherdeed #95904 being transferred earlier, presumably by the attacker<ref name="unnamed-10608" /><ref name="unnamed-10611" />. TBD follow the blockchain trail on this.
|-
|June 23rd, 2022 12:12:00 PM MDT
|Black Alchemy Tweet Report
|The Black Alchemy Solutions Group posts on Twitter to warn about reports they are receiving of malicious QR codes "by the hour". They mention both key loggers and wallet draining applications<ref name="unnamed-10605" />. They include a photo of a QR code which is not malicious<ref>[https://twitter.com/1c4m3by/status/1540349836016361476 1c4m3by - "The one u posted a screenshot of doesn’t seem to contain any malicious coding I ran a dynamic analysis of it" - Twitter] (Apr 5, 2023)</ref>.
|-
|June 23rd, 2022
|MalwareBytes Labs Article
|A report by MalwareBytes highlights the emergence of "rogue cryptocurrency billboards" as a scam technique in the context of the NFT NYC event<ref name="unnamed-10602" />. These billboards are being used to "go phishing for wallets", or promote phishing websites through QR codes<ref name="unnamed-10602" />. The scam involves victims scanning the QR code, which then directs them to a phishing page where they are prompted to enter their details<ref name="unnamed-10602" />. The phishing attempts aim to steal cryptocurrency from unsuspecting users through methods such as airdrop phishing, bogus giveaways, or other deceptive techniques<ref name="unnamed-10602" />. The report suggests that this trend of rogue billboards targeting cryptocurrency users is not isolated to NFT NYC, and references [[Binance Tourist Billboards in Turkey|unrelated cryptocurrency exchange billboards in Turkey]] as another example<ref name="unnamed-10602" />. It advises caution when encountering cryptocurrency billboards and recommends verifying the authenticity of URLs and avoiding sharing sensitive information like seed or recovery phrases<ref name="unnamed-10602" />. The article references the Twitter post by GammaCounter<ref name="unnamed-10602" />.
|}

== Technical Details ==
https://twitter.com/search?q=(from%3Aharper)%20until%3A2022-06-25%20since%3A2022-06-20&src=typed_query


A report by MalwareBytes highlighted the emergence of "rogue cryptocurrency billboards" as a scam technique in the context of the NFT NYC event<ref name="unnamed-10602" />. According to the article, these billboards are being used to "go phishing for wallets", or promote phishing websites through QR codes<ref name="unnamed-10602" />. The scam involves victims scanning the QR code, which then directs them to a phishing page where they are prompted to enter their details<ref name="unnamed-10602" />. The phishing attempts aim to steal cryptocurrency from unsuspecting users through methods such as airdrop phishing, bogus giveaways, or other deceptive techniques<ref name="unnamed-10602" />. It advises caution when encountering cryptocurrency billboards and recommends verifying the authenticity of URLs and avoiding sharing sensitive information like seed or recovery phrases<ref name="unnamed-10602" />. The article references the Twitter post by GammaCounter<ref name="unnamed-10602" />.


"Sadly, it seems nobody grabbed a photo of what these scam billboards look like. However, a "wallet drainer" is just another way of saying "phishing website"."

== Total Amount Lost ==
The only verified reported loss from this incident was an Otherdeed #95904<ref name=":0" />. This NFT had an immediate resale value of 2.660 ETH<ref name=":1" />.

While some sources seemed to suggest that QR codes were more prevalent, there has been no substantiated report of any other loss.

== Immediate Reactions ==
<ref>[https://twitter.com/BlackAlchemySo2/status/1539828433903144960 Black Alchemy Solutions - "So much more than that." - Twitter] (Accessed Apr 9, 2024)</ref>

https://twitter.com/BlackAlchemySo2 <-- TBD review this account.

https://twitter.com/search?q=(from%3ABlackAlchemySo2)%20until%3A2022-07-09%20since%3A2022-06-07&src=typed_query

=== PRD Alpha QR Codes Warning ===
Twitter user PRD Alpha claimed there were several reports of wallets being drained<ref name="unnamed-10609" />. No details were provided.<blockquote>If you are in NYC for @NFT_NYC don't scan billboard QR codes or flyer QR codes

There are several reports of wallets being drained</blockquote>

=== Other Twitter Community Warnings ===


Various reactions were received from the community<ref name="unnamed-10606" />.<blockquote>"Don’t tell me people actually got scammed with QR code’s at NFT NYC"</blockquote>

=== Black Alchemy Fraud Reports ===
On June 23rd, Black Alchemy reported that they were receiving "cases of this by the hour"<ref name="unnamed-10605" />.<blockquote>QR Code Warning NFT_NYC.

NFT_NYC, we highly urge you advise your audience.

We are getting cases of this by the hour.

QR Codes are being used to download various types of malware 

Drain Wallets

Keystroke Logging (Seed Phrases)</blockquote>

=== Example Story Shared Later ===
The following story was shared on June 24th, with no indication whether it was indicative of what was actually happening<ref name="unnamed-10607" />:<blockquote>attacker goes to a restaurant near NFT NYC with QR code menus. clones their website, adds a "25% discount for NFT NYC" that requires you sign with wallet to claim, and replaces the QR with their own. goodbye bored ape</blockquote>

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

=== NFT NYC 2023 ===
NFT.NYC took place again in April 2023 in Times Square and Hudson Yards<ref name=":3">[https://web.archive.org/web/20230628191023/https://www.nft.nyc/ NFT NYC Homepage Archive June 28th, 2023 1:10:23 PM MDT] (Jun 29, 2023)</ref>. Attendees reportedly praised the maturity and diversity of use cases, stories, and companies showcased at the event<ref name=":3">[https://web.archive.org/web/20230628191023/https://www.nft.nyc/ NFT NYC Homepage Archive June 28th, 2023 1:10:23 PM MDT] (Jun 29, 2023)</ref>. It attracted participants from around the world who appreciated the networking opportunities and the chance to connect with artists, projects, and creators in the Web3 space<ref name=":3">[https://web.archive.org/web/20230628191023/https://www.nft.nyc/ NFT NYC Homepage Archive June 28th, 2023 1:10:23 PM MDT] (Jun 29, 2023)</ref>. The event featured speakers, artists, DJs, and singers, creating a vibrant atmosphere<ref name=":3">[https://web.archive.org/web/20230628191023/https://www.nft.nyc/ NFT NYC Homepage Archive June 28th, 2023 1:10:23 PM MDT] (Jun 29, 2023)</ref>. Attendees described NFT.NYC as a valuable resource for gaining insights into blockchain applications and learning about the challenges and innovations in the industry<ref name=":3">[https://web.archive.org/web/20230628191023/https://www.nft.nyc/ NFT NYC Homepage Archive June 28th, 2023 1:10:23 PM MDT] (Jun 29, 2023)</ref>. The event received positive media coverage, highlighting its significance in the NFT community and its role in shaping the future of digital art and blockchain technology<ref name=":3">[https://web.archive.org/web/20230628191023/https://www.nft.nyc/ NFT NYC Homepage Archive June 28th, 2023 1:10:23 PM MDT] (Jun 29, 2023)</ref>.

=== NFT NYC 2024 ===
According to the website, NFT NYC is scheduled again for April 3rd-5th in 2024<ref name=":3" />.

== Total Amount Recovered ==
There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
NFT NYC ran their next event in April 2023<ref name="unnamed-10612" /><ref name=":3" />, and continues to run annually. According to the website, NFT NYC is scheduled again for April 3rd-5th in 2024<ref name=":3" />.
== Individual Prevention Policies ==
There is limited visibility into exactly how this QR code scheme operated, so the advice covers over multiple possibilities.

=== Smart Contract and Website Analysis ===
{{Prevention:Individual:Safe Smart Contract Usage}}

{{Prevention:Individual:Always Verify Executables}}

=== Never Ever Share Your Seed Phrase ===
Many websites operate based on requesting users to share seed phrases in order to connect a wallet or debug an initial failure of their wallet to connect. This is always a bad idea to enter your seed phrase into a website.

{{Prevention:Individual:Never Share Private Keys}}

=== Reduction of Risk Through Offline Storage ===
{{Prevention:Individual:Store Funds Offline}}

{{Prevention:Individuals:End}}

== Platform Prevention Policies ==
{{Prevention:Platforms:No Platform Funds Lost}} None-the-less, platforms may play an important role in user education.

{{Prevention:Platforms:Cryptocurrency Safety Quiz}}

{{Prevention:Platforms:End}}

== Regulatory Prevention Policies ==
The primary reason for any loss (and the panic which happened) was due to a lack of knowledge by event participants in how to properly secure their assets.

{{Prevention:Regulators:Cryptocurrency Education Mandate}}

{{Prevention:Regulators:End}}

== References ==
<references>
<ref name="unnamed-10602">[https://www.malwarebytes.com/blog/news/2022/06/rogue-cryptocurrency-billboards-go-phishing-for-wallets Rogue cryptocurrency billboards go phishing for wallets - MalwareBytes Labs] (Aug 30, 2022)</ref>
<ref name="unnamed-10603">[https://twitter.com/GammaCounter/status/1539279163802148867 GammaCounter - ""Wallet Drainer" sites." - Twitter] (Mar 24, 2023)</ref>
<ref name="unnamed-10604">[https://twitter.com/warpsound_ai/status/1539232021368684553 warpsound - "Times Square Billboard Takeover" - Twitter] (Mar 24, 2023)</ref>
<ref name="unnamed-10605">[https://twitter.com/BlackAlchemySo2/status/1540034957426532352 BlackAlchemySo2 - "We are getting cases of this by the hour. QR Codes are being used to download various types of malware." - Twitter] (Mar 24, 2023)</ref>
<ref name="unnamed-10606">[https://twitter.com/NFTGUYY/status/1539216224282091520 NFTGUYY - "Don’t tell me people actually got scammed with QR code’s at NFT NYC" - Twitter] (Mar 24, 2023)</ref>
<ref name="unnamed-10607">[https://twitter.com/nnnnicholas/status/1540424120499900416 nnnnicholas - "attacker goes to a restaurant near NFT NYC with QR code menus" - Twitter] (Mar 24, 2023)</ref>
<ref name="unnamed-10608">[https://twitter.com/PeckShieldAlert/status/1539456601303941122 <nowiki>PeckShieldAlert - "PeckShield has detected nycnfts[.]xyz is a phishing site. Seems like" - Twitter</nowiki>] (Mar 24, 2023)</ref>
<ref name="unnamed-10609">[https://twitter.com/PRD_ALPHA/status/1539414858600529925 PRD_ALPHA - "There are several reports of wallets being drained" - Twitter] (Mar 24, 2023)</ref>
<ref name="unnamed-10610">[https://www.cubdomain.com/domains-registered-by-date/2022-06-19/14 Domains Registered By Date (2022-06-19) - Page 14 - CubDomain] (Mar 24, 2023)</ref>
<ref name="unnamed-10611">[https://www.qiwv.com/kx/249549.html <nowiki>Paidun: nycnfts[.]xyz is a phishing website | Ethereum Price</nowiki>] (Mar 24, 2023)</ref>
<ref name="unnamed-10612">[https://web.archive.org/web/20230324210833/https://www.nft.nyc/ NFTNYC2023  The Leading Annual Non-Fungible Token Event - Homepage Archive March 24th, 2023 3:08:33 PM MDT] (Mar 24, 2023)</ref>
</references>