The Better Business Bureau has issued a warning about a money-flipping scam that’s gaining popularity on TikTok.
According to the oganization, the scam promises to turn a few hundred dollars worth of cryptocurrency into thousands in no time at all.
How the scam works:
People are scrolling through TikTok when they see a video showing a pile of cash. The creator said they earned the money in just a few days by investing in cryptocurrency, and said they can help others do the same for a small fee. The creators even promise they can triple people’s money in less than a week.
When people contact the creator, they ask them to send money through a service like PayPal, Venmo or Zelle. The BBB said they claim to invest the money in the stock market, where they said it starts multiplying right away.
According to the BB, when people ask for their money back, the creators claim they need to pay fees. Unfortunately, people will never see any of that money again.
Tips from the BBB to avoid money-flipping scams:
- Use good judgment. Get-rich-quick schemes and investments that are 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. If they have conned others, you’ll likely find complaints online about it.
- Don’t give in to scare tactics. If an “investor” contacts you, they may try to convince 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. 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 it turns out you were scammed. It’s best to use these apps only with people you know and trust.
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