The Better Business Bureau (BBB) has warned TikTok users about cryptocurrency scammers. BBB says that any money you send will end up in the pockets of scammers.
BBB is a private nonprofit organization founded in 1912 that has linked people to brands, charities, and businesses they can trust for years.
TikTok is a popular video platform, which makes it an easy target for cryptocurrency fraud. BBB has observed new reports from its scam tracker, which tracks money-flipping scams. According to BBB,
How Cryptocurrency Scammers Target TikTok Users
As a TikTok user, you randomly scroll through TikTok and see a video showing a pile of cash. The creator says they earned the stack of money after a few days of investing in cryptocurrency. This attracts your attention because you need cash, are new to cryptocurrency, and have no idea where to start.
The scammer promises to help you turn your few hundred dollars into billions within a week. You get excited because you have seen your friends get rich from cryptocurrency and feel left out.
The scammers are very polite and professional. At first, they will request you to send money through digital payment services like Venmo, Zelle, or PayPal. After some time, you will ask for your cash.
When you request cash, the scammer will inform you that you must pay transaction fees. The amounts are minimal and insignificant at first. Therefore, you will send the payment several times to get back triple the money you send or are spending.
If your question further, the scammers resort to scare tactics. The scammer will tell you that if you do not pay the fees, you will miss out on wholesome profits, or they will take legal action. Because of fear of authorities, you will pay the fees.
Unfortunately, any money you send to a scammer will never return; you will not even get your initial deposit back. According to BBB, the scam happens not only on TikTok but is also standard on other social media sites. The scammers target users on WhatsApp, Telegram, and Instagram too.
BBB concludes by offering advice on how to avoid being victims of online scams.
- Do your research.
- Keep your sense of judgment on.
- Use popular and established crypto trading platforms like Binance.
- There is nothing like get-rich-quick in cryptocurrency. Nothing comes easy, not even in the cryptocurrency space. You have to work for it.
- Invest with only the amount you can afford to lose to avoid bankruptcy and homelessness.
Increasing Cryptocurrency Scams in 2022
2022 has seen an increase in online cryptocurrency fraud. Scammers are taking advantage of people’s little knowledge of cryptocurrency and conducting money laundering schemes. Recently, the US government arrested a 44-year-old man for promoting a $3.4 billion money laundering scheme, Bitconnect. There have been several hacks, too, like the Tornado Cash and ETWH hacks.
However, cryptocurrency and financial regulatory bodies are looking into ways of preventing fraud. Because hackers are using straightforward methods, governments like Canada have set apart a team of experts to ensure they are always ahead of the hackers.