Investment Scam on TikTok
GREEN BAY, Wis. (WBAY) – People are losing money to a new investment scam. The Wisconsin Better Business Bureau (BBB) has reported an increase in the number of individuals falling victim to this scam, which is being spread on the popular social media network TikTok.
Scammers on TikTok are enticing users with photos or videos of large piles of cash, making it very intriguing for viewers. They promise to triple or double the invested money and claim that only a small amount is required to get a substantial return. However, Lisa Schiller from the BBB warns that this is a significant red flag, as legitimate investments do not guarantee such high returns.
A Victim’s Story
A Wisconsin man shared his experience of losing thousands of dollars to this scam. He was contacted on TikTok by a woman who claimed to work for a trading company in New York. She convinced him that he could make huge profits in cryptocurrency like she did. The man invested $15,000, which he believed turned into over $400,000 in just a month. However, when he tried to withdraw his funds, he was informed that he needed to pay $40,000 in taxes or face tax evasion charges. Unfortunately, he realized he had been scammed.
How the Scam Works
The scam starts with a small investment, usually a couple of hundred dollars. The scammer then continues to ask for more money, using various excuses and promises of higher returns.
The BBB advises everyone to be cautious and aware of the following red flags:
- Any promise of high returns with minimal investment
- Pressure to invest quickly without proper research
- Requests for additional funds with various excuses
It is important to spread awareness about this scam among friends and family to prevent more people from falling victim to these get-rich-quick schemes.
Investment scams on TikTok are on the rise, with scammers luring users with promises of huge returns. The BBB urges everyone to stay vigilant, recognize the red flags, and avoid falling for these fraudulent schemes. Remember, if it sounds too good to be true, it probably is.
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