Marketplace Issues

Marketplace Issues Subhead Be on the lookout for Cyber Money Flipping scams Mechele Mills Wed, 09/18/2024 - 06:12 Image

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  Marketplace Issues

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Money-flipping cons have long been 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. BBB is seeing many new reports in BBB Scam Tracker related to this money-flipping scam. Here’s what you need to know.

How the scam works

The creator of a TikTok video claims they earned an obscene amount money by investing in cryptocurrency. This “investor” also claims they can help you get the same kind of return… for a modest fee. And, they guarantee they can triple your money in less than a week.

Often communicating via platforms like WhatsApp, Telegram, or another messaging apps, they ask you to send money – usually a few hundred dollars – through a digital wallet service like PayPal, Zelle, or Venmo. In some cases, they may even ask you to purchase the cryptocurrency and send it to them. They then claim to invest the money which allegedly sees huge returns very quickly. However, in order for you to get your return on investment, they will attempt to collect “fees” from you for as long as possible. Your two hundred dollars is now several thousand dollars. Eventually, the scammer disappears… and so does your money. BBB provides the following tips to avoid money- flipping scams:

Use good judgment. Get-rich-quick schemes and investments 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. You’ll likely find complaints online about it if they have conned others.

Don’t give into scare tactics. If you are contacted by someone who claims to be an investor, they may try to convince you the investment will only work if you act right now. If you have already sent 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 you were scammed. Using these apps only with people you know and trust is best.

Speak with a licensed financial advisor. Financial consultants (also called financial planners and financial advisors) can help you create a plan to pursue and fulfill your financial goals, including investing, planning for college, and retirement planning. They can also review your financial portfolio, and help you strategize to make it stronger. Find a trustworthy Financial Services Consultant near you.

For more information

Learn more by reading BBB’s study on cryptocurrency scams. Read up on more investment scam techniques and money-flipping scams, and check out “Fighting Financial Fraud” from BBB Institute for Marketplace Trust and FINRA, the Financial Industry Regulatory Authority. If you spot a scam on TikTok or elsewhere, report it to BBB Scam Tracker, even if you didn’t lose any money. Your report helps boost consumer awareness about the issue. Check out more crypto tips and money advice on BBB.org.

Remember, great businesses are out there. Always look for the BBB seal; it’s the Sign of a Better BusinessSM. Start with companies you can trust by going to bbb.org.

About BBB: BBB is a nonprofit, business-supported organization that sets and upholds high standards for fair and honest business behavior. Most BBB services to consumers are free of charge. BBB provides objective advice, free BBB Business Profiles on more than 5.3 million companies, 11,000 charity reviews, dispute resolution services, alerts and educational information on topics affecting marketplace trust. Visit bbb.org for more information. BBB Serving Central East Texas was founded in 1985 and serves 19 counties.