LAFAYETTE, La. (KLFY)– Cryptocurrency investment scams are taking over TikTok. Experts are warning users to beware of these money-flipping cons.
Money-flipping cons have been long 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.
“This type of scam is what we would call like a money-flipping scam where they’re wanting you to invest money,” Chris Babin of the Better Business Bureau of Acadiana said. “Of course, they promise a lot in return and they’re targeting a lot of people on social media which we know is risky. More specifically, TikTok.”
You’re scrolling through TikTok when you see a video showing a pile of cash. The creator said they earned the money by investing in cryptocurrency, and this investor can help you get the same kind of return for a fee.
“They want you to invest in cryptocurrency and they’re going to promise a large return,” Babin said. “Of course, they guarantee a huge warranty on the money, and they want you to invest and make a bunch of money with them.”
These scammers have a 100% guarantee they can triple your money in less than a week.
“They’re promising easy money,” Babin said. “They make it out to be no work involved, just send me a couple hundred dollars. A lot of times they actually want you to purchase the cryptocurrency, send them the cryptocurrency. They want you to use a digital wallet, Payal, Venmo, Zelle. There are ones where you send money and it’s just treated like cash. It’s actually gone at that point, and they’re going to invest it and give you a whole bunch of return on it. The problem is when you’re dealing with a scammer, you’re not getting any money in return.”
Here are some tips from the BBB on how you can avoid money-flipping scams:
- Use good judgment. Get-rich-quick schemes and investments guaranteed to give you a huge return are nearly always scams.
- Do your research. Before you contact someone through tiktok or another social media platform, look up their name, phone number, and company name online.
- Don’t give into scare tactics. If an investor contacts you, they may try to covince you the investment will only work 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.
- 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.
If you have a scam you’d like Sylvia Masters to investigate, email her at firstname.lastname@example.org.