Digital Ownership or Digital Deception? Understanding Fraudulent Behaviour in NFT Markets through the Fraud Triangle Lens

Abstract

Abstract: The non-fungible token (NFT) marketplace has rapidly evolved into a transformative space, experiencing remarkable growth in recent years. NFTs serve as digital ownership certificates linked to unique assets such as art, collectibles, and digital media, exemplifying blockchain innovation. This paper employs an exploratory, systematic literature review of Scopus-indexed sources to examine the fraud-prone dimensions of the NFT ecosystem. Using the fraud triangle framework—pressure, opportunity, and rationalization—it investigates individual and organizational drivers of deceit. The study identifies major fraud types including rug pulls, wash trading, Ponzi schemes, whitelisting, and phishing, offering insights to guide policymakers and participants in mitigating NFT-related risks. Keywords: Non-Fungible Tokens, Blockchain, Digital Fraud Vulnerabilities, Three-Factor Fraud Framework, Risk Mitigation JEL Classification Number: G32, G18, K83, K24, O33