Cryptocurrency scammers are increasingly exploiting US celebrities to target vulnerable consumers, new research revealed.
A cybersecurity firm highlighted the growing threat of unauthorised non-fungible tokens (NFTs) associated with popular US stars.
BrandShield Systems PLC (AIM:BRSD) identified the top 10 celebrities promoting NFTs, crypto wallets, and digital assets in the past year including Paris Hilton, who claims to have more than 150 NFTs, and Tom Brady, co-founder of NFT platform Autograph.
BrandShield then scanned popular NFT marketplace OpenSea for fraudulent listings to understand the breadth of NFT scams associated with the top impersonated celebrities and noted 41,500 NFTs with unauthorised use of likeness and image associated with popular celebrities.
NFL icon Tom Brady accounted for the highest percentage (75.53%) of fraudulent NFTs, followed by Mike Tyson at 16.65% and Kim Kardashian at 4.23%.
Scammers often impersonate celebrities or brands on social media and the profiles might direct fans to phishing sites or trick them into buying fake NFTs, said the cybersecurity company.
Based on existing data, the current US$3bn market for NFTs will grow to US$13.6bn by 2027, and BrandShield's findings underscore the seriousness of cryptocurrency scams that exploit celebrity influence to defraud consumers.
Tom Brady also tops the list (17.49%) of most impersonated celebrities across social media, followed by actor Matt Damon at 13.79%, former professional boxer Mike Tyson at 13.56%, Kim Kardashian at 12.05% and Paris Hilton at 10.92%.
Across Facebook, Twitter, Instagram, and Pinterest, the company found over 16,500 impersonators.
A majority of impersonations were found on Twitter, the report said - a problem emphasised by Elon Musk in his current bid to acquire the company.
In the past, fake Tesla CEO accounts have propagated crypto-related scams, while other fraudulent accounts have accessed users' crypto wallets or stolen log-in information.
"These fraudsters spread their scams over many different platforms to evade detection, and social media is often the first layer of the funnel. Frequently, without their knowledge or consent, endorsement of an NFT is weaponised against a celebrity's fandom," said Yoav Keren, chief executive of BrandShield.
"Whilst many brands and celebrities have seen NFTs as a positive way to create meaningful, digital touchpoints for fans, the unregulated, 'wild west' digital asset space can be dangerous."