Money-flipping cons have long been popular on Instagram and Twitter. But as TikTok’s popularity continues to grow, con artists discover it. Watch out for this TikTok scam, which promises to turn a few hundred dollars worth of cryptocurrency into thousands in no time.
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.
They even offer a 100% guarantee they can 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 promise to “invest” the money in the stock market, which allegedly will start multiplying immediately.
As always, the scam isn’t what it seems. When you try to get your money back, the scammer will claim you must pay fees.
At first, these amounts 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 don’t pay, you’ll 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 won’t be getting a return on your investment and you won’t get your initial deposit back either.
The Better Business Bureau offers these tips for avoiding money-flipping scams:
• Use good judgment. Get-rich-quick schemes and investments guaranteed to give you a huge return are nearly 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’ll likely find complaints online about it if they have conned others.
• Don’t give into scare tactics. If an “investor” contacts you, they may try to convince you the investment will work only if you act right now. Or, if you’ve already sent them funds, they may threaten you with legal action if you don’t pay their fees. In any case, don’t 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. Using these apps only with people you know and trust is best.
If you spot a scam on TikTok or elsewhere, report it to BBB’s Scam Tracker at bbb.org/scamtracker.