Money scams have long been popular on Instagram and Twitter. But as TikTok's popularity grows, so do scammers. Beware of this TikTok scam, which promises to turn a few hundred dollars in cryptocurrency into thousands in no time. BBB is seeing many new reports on the BBB Scam Tracker related to this money investment scam.
How the scam works
You're browsing TikTok when you see a video showing a bunch of cash. The creator says that he earned the amount of money in just a few days by investing in cryptocurrencies. You may not know much about cryptocurrencies, but this "investor" can help you earn the same type 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 communicating with the supposed investor, probably via WhatsApp, Telegram or another messaging app. They'll 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 buy the cryptocurrency and send it to them. They then โinvestโ the money in the stock market, which supposedly begins to multiply immediately.
As always, the scam is not what it seems. When you try to get your money back, the scammer will claim that you have to pay fees. At first, these amounts may seem harmless. Since your few hundred dollars have now turned into a few thousand, what's wrong with spending a couple hundred on fees, right?
Scammers try to extend this scam as long as possible to get as much money as possible. They may ask you for rates multiple times, always promising that you will get much more than you spend. If you question them, they may resort to scare tactics, telling you that if you don't pay you will miss out on the huge return or that they may take legal action. Unfortunately, any money you send will end up in the scammer's pockets. You will not get a return on your investment and you will not get your initial deposit back.
How to avoid money investment scams
Use good judgment. Get-rich-quick schemes and investments that guarantee big returns are almost always scams. If a deal seems too good to be true, it probably is.Do your research. Before contacting someone through TikTok or another social media platform, search for their name, phone number, and company name (if they have one) online. You will probably find complaints about it if others have been scammed.Don't give in to scare tactics. If an โinvestorโ contacts you, they may try to convince you that the investment will only work if you act now. Or, if he has already sent them funds, they may threaten him with legal action if he does not pay his fees. In any case, don't give in to scare tactics. Recognize these as the hallmarks of a scam.Understand how digital wallet services work. Treat any money you send through a digital wallet service as cash. Once you send the money, there is 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 the BBB study on cryptocurrency scams at bit.ly/BBBCryptoScamStudy. If you spot a scam on TikTok or elsewhere, report it at BBB.org/ScamTracker, even if you didn't lose any money. Your report helps increase consumer awareness on the issue. See more cryptocurrency tips at BBB.org/Crypto and money tips at BBB.org/Money.
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