Money-flipping cons have long been popular on Instagram and Twitter. But as TikTok’s popularity grows, so do the con artists. Watch out for this TikTok scam, which promises to turn a few hundred dollars’ worth of cryptocurrency into thousands in no time. BBB is seeing many new reports in BBB Scam Tracker related to this money-flipping scam.
How the scam works
You are scrolling through TikTok when you see a video showing a pile of cash. The creator says they earned the stack of money in just a few days by investing in cryptocurrency. You may not know much about cryptocurrency, but this “investor” can help you get the same kind of return for a modest fee. Better yet, they have a 100% guarantee that they will triple your money in less than a week.
They will be polite and professional when you contact the supposed investor, likely through WhatsApp, Telegram, or another messaging app. They will ask you to send money – usually a few hundred dollars – through a digital wallet service like PayPal, Zelle, or Venmo. They may even ask you to purchase the cryptocurrency and send it to them. Then, they “invest” the money in the stock market, which allegedly starts multiplying immediately.
As always, the scam is not what it seems. When you try to get your money back, the scammer will claim you must pay fees. At first, these amounts may seem harmless. Since your few hundred dollars now turned into a few thousand, what’s the harm in spending a couple hundred in fees, right?
Scammers try to extend this con for as long as possible to get as much money as possible. They may ask for fees several times, always promising you will get much more back than you spend. If you question them, they may resort to scare tactics, telling you that if you do not pay you will miss out on the giant return, or that they can take legal action. Unfortunately, any money you send will end up in the scammer’s pockets. You will not be getting a return on your investment, and you will not be getting your initial deposit back either.
How to avoid money-flipping scams
- Use good judgment. Get-rich-quick schemes and investments guaranteed to give you a huge return are almost always scams. If an offer sounds too good to be true, it probably is.
- Do your research. Before you contact someone through TikTok or another social media platform, look up their name, phone number, and company name (if they have one) online. You will likely find complaints about it if they have conned others.
- Do not give in to scare tactics. If an “investor” contacts you, they may try to convince you the investment will only work if you act right now. Or, if you have already sent them funds, they may threaten you with legal action if you do not pay their fees. In any case, do not give in to scare tactics. Recognize them as the hallmarks of a scam.
- Understand how digital wallet services work. Treat any money you send through a digital wallet service like cash. Once you send the money, there will be little you can do to get it back if you were scammed. Only use these apps with people you know and trust.
FOR MORE INFORMATION – Learn more by reading BBB’s study on cryptocurrency scams at bit.ly/BBBCryptoScamStudy. If you spot a scam on TikTok or elsewhere, report it to BBB.org/ScamTracker, even if you didn’t lose any money. Your report helps boost consumer awareness about the issue. Check out more crypto tips at BBB.org/Crypto and money advice at BBB.org/Money.
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