Artificial Intelligence, AI Art & Finance

Scam Artists Scamming AI Artists: A Cautionary Tale in Crypto Commerce

My real-life story of nearly being scammed in the world of AI Art

So you’re an AI artist, and someone swoops into your DMs like they’re sliding into home plate at the World Series. They’re all, “Hey, I wanna buy your digital art as an NFT, and I want to pay in Ethereum!”

Is this your big break or just another scam to add to the “Why I Have Trust Issues” folder? 🤷‍♀️ 📁 NFTs are like the Wild West of digital art, where you’re not sure if you’re the cowboy or the prey 🤠 Well gather ‘round the digital campfire cowpoke, because I’ve got a tale about a recent close shave.

The Allure of Digital Compliments

So, there I was, scrolling through Facebook when I get this message from a famous golf course owner. He was from Scotland, a place near and dear to my heart. Mr. Golf — that’s what we’ll call him, to protect the real person he impersonated online — sent a heartfelt message praising my optical illusion pareidolia art. For those of you who just heard that term and went, “Parei-what now?”, pareidolia is a type of art that make you see things that aren’t there — like seeing faces in clouds or a creepy figure in your bedroom curtain. Irony alert: it’s all about shifting faces and perceptions.

Mr Golf seemed keen on buying the entire collection as NFTs, and I was all ears. I mean, who doesn’t like to hear that their work is “exceptional ✨😊”?

All that glitters?

I should add, I’ve had odder requests and offers that have turned out to be real. I’ve made custom AI art for a celebrity (no, I won’t say whom, but they paid as much as the scammer offered). I’ve been contracted to consult on AI prompts for a company I fanboyed over. In an upcoming article, I’m going to review some amazing luxury devices I was sent gratis by tech companies.

So my perhaps usually keen-eyes were a little blinded by oppportunies 😎

A Business Proposition with Strings Attached

We chatted. We were vibing. Mr Golf represented himself as a patron of AI arts. He offered to introduce me to “other friends who also love and collect artworks as Digital Arts”. The conversation led to a business proposition where Mr Golf agreed to buy four of my artworks for a whopping 25ETH.

That’s Ethereum, for the uninitiated. A cryptocurrency that’s as volatile as Kanye’s Twitter feed but, if you catch it on a good day, you won the lottery.

Then he asked me to upload my artworks on Rarible, a platform for buying and selling NFTs. Fair enough, right? Rarible is a legit site for NFT trading.

The important thing was, however, that I didn’t click on his link for Rarible.

It’s just second nature at this point to never click on a link you don’t trust. That’s internet 101. In hindsight, his link would’ve been for a mirror site.

That’s not the end of the scam, because Mr Golf had another few tricks up his sleeves that I want to make you aware of. But first, some background:

“What’s the Big Deal with NFTs?” and Other Millennial Mysteries 🎨

Let’s be clear, NFTs are not inherently scammy. It’s like saying all of Twitter is awful because of a few trolls — unfair, right? NFTs (Non-Fungible Tokens, for those who might not know and are pretending to nod and smile) are just a way to prove your ownership of a digital asset. Think of them as the fancy certificate of authenticity your grandma got with her prized porcelain dog.

But here’s where it gets interesting: Mr. Golf had a strong payment preference. Ethereum (ETH) was his currency of choice. As someone new to ETH — but not a total crypto novice — I was both intrigued and cautious. And as our transaction progressed, more red flags began to unfurl… 🚩 🚩 🚩

The Fools’ Gold of Ethereum 🏔️ ⛏️💰

Now, don’t get me wrong. I love cryptocurrencies. There’s gold in them thar’ hills! Ethereum is a prominent cryptocurrency and has become an accepted medium of exchange for digital art and other online goods, especially with the rise of NFTs. It’s not that ETH is all bad; it’s that Mr Golf was pressing hard for it — like, “No ETH, no deal”. But there are several reasons someone might prefer to pay with Ethereum (ETH) — and not all of them are negative:

1. Anonymity & Privacy: Cryptocurrency transactions can offer more privacy than traditional methods. Some buyers genuinely prefer this.
2. Asset Preference: Some individuals have a substantial amount of wealth in crypto and may find it convenient or financially beneficial to make purchases in ETH rather than converting it back to fiat currency.
3. Potential Red Flags: While some buyers may legitimately prefer crypto, it’s worth noting that cryptocurrency is also favored by bad actors and scammers due to its ability to facilitate fraudulent and illicit activities.

Are they all ETH-heads?

This isn’t to say that someone preferring ETH is attempting a scam, but it’s essential to be aware and take precautions. Some checks to consider are:

• Verification: Can you can verify the identity of the buyer? If they’re not willing to provide verification or become aggressive, that’s a red flag 🚩
• Research the Buyer: While it’s not foolproof, a little online detective work can give you more insight into who you’re dealing with. Look for a professional presence, an art collection, or any other credentials that validate a genuine interest in art. (Sadly, Mr Golf passed this check!)
• Contact the buyer another way. Daddy Warbucks offering to buy your AI art? Okay, contact him through his business email. Don’t ask the buyer for the email address; find it externally, on a professional website like LinkedIn, and continue your conversation through official channels.
• Transaction Method: Use a registered, trusted platform. This can help to avoid potential scams and keep your digital wallet safe. But if the buyer recommends a preferred site, don’t click on a link! It could be a mirror.
• Consider a Middleman Service: There are reputable escrow services for cryptocurrency transactions. These middleman services can act as an unbiased third party to ensure both sides fulfill their end of the deal.
• Communicate: Open communication lines. If the buyer is genuine, they should be willing to discuss and find a middle ground for both parties.

Is It All a Scam?

Hold up! Time to sprinkle in some positivity. Not all NFT offers are scams.

Remember the artist Beeple? His NFT artwork sold for like, oh, just $69 million! Crazy, right? But Beeple was established in his field, understood the crypto scene, and didn’t just randomly receive a DM from a sketchy account. So there are legit opportunities, but you need to tread carefully.

Real Buyers Don’t Make You Feel Like You’re in a Spy Movie 🕵️‍♀️

Legit buyers will not make you jump through digital hoops or offer you a deal too good to be true. If they’re sending you fishy links and making you feel like you’re trading state secrets, or in a race against time, GET OUT.

Trust your gut instincts. If something feels off, it’s okay to say NO. While the prospect of a sale is enticing, your peace of mind and safety are paramount.

The Plot Thickens: A Twisted Web of ETH and NFTs 🕸️

I told you that Mr Golf had some extra tricks up his sleeve, right? Even though I didn’t click on his links and used a legit marketplace, he tried to tighten the screws by having me pay for the costs involved in minting NFTs.

Minting can cost $1000 and that can put an artist between a rock and hard place. Once a victim shells out crypto, there’s added pressure to close the ‘deal’. You might make mistakes, because you want that investment back.

Thankfully, you can enable “free minting” on the real Rarible, which means the buyer of your NFT covers the fees at the point of purchase. Just make sure you’re not launching a collection, or you’ll be left holding the bag!

Transaction Troubles and Sketchy Emails

Even with the precautions in place (listing my AI art on a real site, not paying for minting fees, etc.) Mr Golf tried again. He says his Ethereum transaction was declined and needs me to email the help desk address to approve it.

He even gives me the email: “[email protected]”. Really?

Whatever you do, DON’T email that shady address.

I’m only including it to warn others, so that if anyone searches it, they’ll find this warning: Here be dragons 🐉

The Reddit Confirmation: This Isn’t Just My Story

No siree! Artists being targeted isn’t something new. Just hop on over to Reddit, and you’ll see this scamming strategy is not an isolated episode.

A quick tour of Reddit’s r/NFT and r/ArtScams sections reveals numerous accounts of artists being targetted by this scam. It’s affected traditional artists for years, and budding AI artists need to be made aware of it too.

At this point, if you’re a prominent AI artist, you should expect to encounter the NFT scam eventually. It’s a rite of passage—let’s call it a badge of honor. Hopefully this blog post will help you to avoid it too, and get by unscathed.

Please share this article with your AI artist friends to spread the warning.

How to Spot a Scammer 101

1. Unusual Urgency: “You have to do this now!” Nah, fam, I don’t. 🚫
2. Asking for Personal Info: If they want to know your grandma’s middle name, run. 🏃‍♀️
3. Directing You to External Links: Don’t click! They’re the digital equivalent of a dark alley or going to a second location. 🚷
4. Too Good to Be True Offers: No one’s going to offer you a gazillion dollars for your AI art of a Persian cat in an Abraham Lincoln hat. 🎩
5. Consult With Trusted Peeps: If in doubt, ask a friend! 🤓

What Now?

I came out unscathed, but with a wealth of knowledge and a story to tell. The whole experience served as a reality check. Don’t let the sparkle of cryptocurrency blind you from seeing the reality of a potential scam.

How About You?

Ever found yourself in a crypto pickle? Or maybe you’ve dodged a scam? Got any intriguing tales from the digital frontier? I’d love to hear them! Share your hard earned wisdom in comments! Let’s all protect each other.

Till next time, keep your pixels sharp and your wallets sharper!

Who is Jim the AI Whisperer?

Jim the AI Whisperer offers private coaching on how to write original and compelling content, as well as how to use AI generators to create stunning visuals. If you’re interested in discovering more, feel free to contact me.

I’m also available for podcasts, interviews, fine-tuning AI prompts, and creating prompt libraries and professional AI images for companies.

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