NFT NYC Malicious QR Code Phishing

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NYC NFTs Phishing Website

Based on an initial analysis, it seems that the 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 QR codes were ever recorded on billboards. There was only one report of a single NFT being transferred due to this attack.

This exchange or platform is based in United States, or the incident targeted people primarily in United States.

About NFT NYC

NFT NYC describes itself as "the leading annual non-fungible token event". The 2022 meet-up is the fourth such event to take place. With NFTs hitting boiling point in the media, it's natural to think scammers would turn their sights on the plundering of incredibly fungible apes and other items of a digital nature.

"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"."

This exchange or platform is based in United States, or the incident targeted people primarily in United States.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

• Known history of when and how the service was started.
• What problems does the company or service claim to solve?
• What marketing materials were used by the firm or business?
• Audits performed, and excerpts that may have been included.
• Business registration documents shown (fake or legitimate).
• How were people recruited to participate?
• Public warnings and announcements prior to the event.

Don't Include:

• Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
• Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

• When the service was actually started (if different than the "official story").
• Who actually ran a service and their own personal history.
• How the service was structured behind the scenes. (For example, there was no "trading bot".)
• Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - NFT NYC Malicious QR Code Phishing

Date	Event	Description
June 19th, 2022	Malicious Domain Registered	The nycnfts.xyz domain is registered.
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. The main event of NFT NYC is reportedly not until 3 PM.
June 21st, 2022 10:08:00 AM MDT	GammaCounter Posts Warning	A warning is shared to Twitter, with a screenshot from a Discord channel.
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".
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. 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. They include a photo of a QR code which is not malicious.
June 23rd, 2022	MalwareBytes Labs Article	An article by MalwareBytes Labs warns about the presence of "rogue cryptocurrency billboards" that "go phishing for wallets". The article references the Twitter post by GammaCounter. TBD more details.

Total Amount Lost

The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Various reactions were received from the community.

"Don’t tell me people actually got scammed with QR code’s at NFT NYC"

On June 23rd, Black Alchemy reported that they were receiving "cases of this by the hour".

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)

The following story was shared on June 24th, with no indication whether it was indicative of what was actually happening:

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

Ultimate Outcome

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

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

What parts of this case are still remaining to be concluded?

NFT NYC is open for their next event in April 2023.

Individual Prevention Policies

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.