TikTok is grappling with a deluge of fraudulent cryptocurrency giveaways that are inundating the platform, and these scams predominantly impersonate tech mogul Elon Musk and companies like Tesla and SpaceX. Historically, scammers have employed fake cryptocurrency giveaways across various social media platforms, but TikTok has recently become a hotspot for these scams.
Additionally, the modus operandi typically involves the creation of videos, some of which employ deep fake technology to make it appear as if Elon Musk is endorsing a cryptocurrency giveaway. These videos prompt users to visit specific websites, register accounts, and enter promo codes to claim free Bitcoin.
The scam becomes more sinister when users are coerced into making an “activation” deposit of approximately $132 in Bitcoin. Despite promises of Bitcoin rewards, victims receive nothing in return, and the scammers profit from these deposits. Furthermore, users are often prompted to input KYC (Know Your Customer) information, which poses a risk to their legitimate cryptocurrency accounts.
This surge in cryptocurrency scams on TikTok reflects their significant profitability, with reports stating that $80 million has been lost to cryptocurrency investment scams since October 2020. Even reputable sources like the Better Business Bureau have issued warnings about these scams, underscoring the need for extreme caution when encountering cryptocurrency giveaways on social media.
In light of the persistent threat, it is essential for users to exercise skepticism and vigilance when presented with cryptocurrency giveaways, especially those claiming to be endorsed by high-profile figures or organizations.
Most crypto giveaway sites, particularly those associated with Elon Musk, Tesla, SpaceX, and other renowned names, are fraudulent. The scammers behind these schemes are unlikely to relent, making it crucial for users to be cautious and refrain from sending any cryptocurrency to these fraudulent operations.