TikTok is grappling with a surge in fraudulent cryptocurrency giveaway schemes, primarily centered around themes related to Elon Musk, Tesla, or SpaceX.
TikTok is currently struggling with a significant problem as it deals with a surge in fraudulent cryptocurrency giveaway schemes on its platform, mainly centered around themes associated with Elon Musk, Tesla, or SpaceX.
Malicious individuals have been exploiting social media platforms like Instagram and Twitter for an extended period to carry out counterfeit cryptocurrency giveaways. These scams typically involve impersonating celebrities, cryptocurrency exchanges, and, most commonly, adopting the identity of Elon Musk or SpaceX.
Numerous online videos feature websites with names closely resembling each other, such as bitoxies[.]com, moonexio[.]com, altgetxio[.]com, and cratopex[.]com.
Within these videos, viewers are prompted to participate in a giveaway by creating an account and entering a special promo code shared in the TikTok video. Once the code is entered, the website creates the illusion of adding Bitcoin to the user’s digital wallet. For instance, a scam website might pretend to add 0.34 Bitcoin to the wallet, claiming it’s worth approximately $9,000.
However, to attempt withdrawing the purported free bitcoins, users must activate their accounts by depositing 0.005 Bitcoins, approximately $132. Since users never actually receive any bitcoins from the site, the scammers profit from these “activation” deposits.
These scams are increasingly common and pose significant risks. Scammers frequently demand personal information, including identity verification details (KYC), which they can then use to attempt unauthorized access to legitimate cryptocurrency accounts.
The Federal Trade Commission (FTC) released a report warning that people have lost $80 million to cryptocurrency investment scams since October 2020. Recently, the Better Business Bureau issued a cautionary statement regarding cryptocurrency scams on TikTok.
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