The Better Business Bureau (BBB) warned of cryptocurrency scams on the popular video-hosting platform Tiktok Friday. Founded in 1912, the BBB is a private, nonprofit organization that empowered people to find businesses, brands, and charities they can trust for over 110 years.
The BBB explained that ‘as Tiktok’s popularity grows, so do the con artists.’ Noting that it is seeing many new reports from its ‘Scam Tracker related to this money-flipping scam,’ the BBB described:
You are scrolling through Tiktok when you come across 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.
Scammers on Tiktok may promise ‘to turn a few hundred dollars’ worth of cryptocurrency into thousands in no time at all,’ the BBB detailed, adding that they may even ‘have a 100% guarantee that they can triple your money in less than a week.’
The organization explained that ‘When you contact the supposed investor [scammer], likely through Whatsapp, Telegram, or another messaging app, they will be polite and professional,’ adding:
They will ask you to send money – usually, a few hundred dollars to start – through a digital wallet service like Paypal, Zelle or Venmo.
However, ‘When you try to get your money back, the scammer will claim you need to pay fees. At first, these amounts may seem harmless … They may ask for fees several times, always promising you will get much more back than what you are spending.’
‘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,’ the BBB further cautioned, elaborating:
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 be getting your initial deposit back either.
The BBB concluded by giving some advice on how to avoid money-flipping scams. Besides using good judgment and doing your research, the organization cautioned people not to give into scare tactics and understand how digital wallet services work.