Popular social media platforms deal with thousands of scammers that use their sites and apps to hawk fake diet pills, get-rich-quick, and multi-level marketing schemes, and even phony adult dating sites designed to part people from their money.
Now, TikTok is experiencing that same influx of scammers.
Better Business Bureau Serving Western Virginia warns consumers of scammers using TikTok targeting minors with new sophisticated schemes.
According to a recent report by cybersecurity firm Tenable, scammers have been lurking on the platform using TikTok’s advertising since its inception. But with its meteoric rise in popularity in February, a new wave of cons has plagued the social platform. And with a third of its users aged 14 and younger, it’s a perfect opportunity for scammers to exploit minors.
In its social platform infancy, scammers were already reaping the benefits of creating fake profiles to trick unsuspecting TikTok users into signing up for adult dating websites or pay for fraudulent “premium” Snapchat accounts.
Some common swindles early on TikTok were:
- Buy Likes & Followers – Increasing likes and followers to raise the popularity of a profile.
- Adult-dating & Impersonation – Gaming the cost-per-action networks of adult dating websites that pay for qualified leads.
- Award Money for App Installs – Taking advantage of cost-per-install networks that offer monetary rewards to users who drive other users to install apps.
“These social scammers have matured their deceptive ploys and use TikTok’s #ForYou page as their central hub for selling fake mobile apps, quick cash offers, fake celebrity endorsements of diet pills, overpriced drop-shipped goods, bogus gift cards, college tuition assistance scams, and more,” says Julie Wheeler, President, and CEO of BBB Serving Western Virginia.
A new study by digital safety app maker Qusodio on kids’ app usage and habits indicates children four to 14 in the United States, United Kingdom, and Spain now spend an average of 80 minutes per day using the app, putting it on par with YouTube. An April report from SensorTower, a mobile app market intelligence firm, found that TikTok has surpassed two billion downloads globally this year and one-third of the apps 100 million monthly users are under the age of 14.
“With the number of scams and social platform usage skyrocketing, parents should be aware of the likelihood of their kids being targeted by scammers,” says Wheeler. “These younger users likely don’t have disposable income and could be more susceptible to ads encouraging them to make easy money.”
Recent reports also investigated an advertising app called iMoney, which claims to pay users out for completing simple internet tasks like downloading other apps, playing games, or even spending money on an Amazon item and leaving a review. The app advertising on TikTok often disguises itself up to five different apps on the App Store in hopes to increase the exposure rate of these social schemes to young users. The app also requires users to download a certificate on to their phone or provide driver’s licenses or other ID to cash out, all of which is against Apple’s terms of service. On average, users only earn around 23 cents per task if they even ever get paid. Many users have complained about being unable to collect what little they’ve made.
Just as advertising on Facebook, Instagram, and Twitter has created a niche for digital marketing, TikTok’s advertising platform has enabled advertisers to target its 800 million monthly active users — and scammers are rushing to take advantage of the platform’s scope and reach. The number of users combined that with the susceptibility rate of minors and scammers see huge potential for financial gain with new #ForYou ad schemes. TikTok, which is currently owned by Chinese firm ByteDance, has not responded to requests for their advertising standards including the target audience or what can be advertised on their social platform.
Four Types of TikTok Advertisement Scams
- Easy money offers.These offers claim to help users earn money by downloading applications that are either deceiving or questionable in nature, including a series of iMoney applications. These ads are problematic because they promote fake apps, lure users into potential pyramid schemes, request personally identifiable information such as driver’s licenses, and, in extreme cases, encourage users to install mobile device management (MDM) tools, which could potentially compromise their devices.
- “Free” offers that come with a price.These scams offer everything from free diet pills and “performance enhancers” to video games, headsets, and gift cards. They are problematic because they use fake celebrity endorsements and fake news articles to dupe users into providing credit card details in exchange for “free” goods, subjecting unsuspecting users to recurring subscription fees or other types of unreimbursed charges.
- Dropshipping schemes involving price gouging and questionable goods.These ad scams typically are used to promote questionable or extremely overpriced goods offered by dropshipping. While dropshipping itself isn’t necessarily a scam, these offers are problematic when they involve price gouging, counterfeit or questionable goods, or duping buyers into paying for goods they never receive.
- Dishonest credit repair and tuition assistance offers.These ad scams prey on those who may be in dire financial straits by promising to repair credit card history or by promoting online classes to access financial aid that they could apply for directly on their own. In many cases, these ads are merely a ruse to entice users to pay for bogus services or share their personally identifiable information.
Report A Scam
Users can report abuse, spam, or inappropriate content that doesn’t follow TikTok Community Guidelines.
Lafayette business receives cease and desist order for lack of credit repair bond
LAFAYETTE, La. (KLFY) – A Better Business Bureau Serving Acadiana complaint and subsequent investigation led to the Louisiana Office of the Attorney General issuing a “cease and desist” order to Lafayette-based Virtuous Business Consulting and owner Jessica Chaisson.
The business was ordered to immediately stop performing credit repair services at their 1003 Louisiana Ave. location. Virtuous Business Consulting currently has an F rating with BBB.
The AG order settles allegations the business performed credit repair services without the required $100,000 surety bond as required by state law under the Louisiana Credit Repair Services Organizations Act. Under terms of the order, the business was required to immediately stop performing credit repair services as well as provide the names and contact information for anyone who used their credit repair service. The order was for settlement purposes only and should not be considered as an admission of guilt.
According to BBB records, the company received a complaint from a consumer, alleging the company accepted an advance fee for credit repair then never performed the service. The business did not respond to the consumer complaint.
BBB sent correspondence to the business on Nov. 4, 2020, requesting a brief description of the products or services offered, copies of marketing materials provided to their customers, copies of any service agreements provided to customers and a copy of the required surety bond but BBB didn’t received a response.
“Hearing from consumer experiences help us keep the public informed with situations such as these,” said Jillian Dickerson, BBB Serving Acadiana President and CEO.
According to the U.S. Credit Repair Organizations Act, “No credit repair organization may charge or receive any money or other valuable consideration for the performance of any service which the credit repair organization has agreed to perform for any consumer before such service is fully performed.”
When looking for credit repair services or debt relief, consider the following:
- Understand the difference between credit repair services and debt relief. Credit repair companies repair credit reports for a fee; debt relief are typically programs that offer loans to consolidate debt.
- Carefully research companies on BBB.org before agreeing to any services and make sure the company can help resolve the situation.
- Before signing any contract, read and understand the terms and conditions, especially if it involves a loan.
This 7-Figure Wealth Coach Has Helped Countless People Repair Their Credit During the Pandemic
Coach Legend, as he is known, has been helping people struggling financially during the pandemic increase their credit scores and gain greater financial freedom. He has largely done so with the help of Instagram and Facebook. Through his genuine and authentic approach to social media marketing, Coach Legend has been able to help countless people turn their lives around.
What makes Coach Legend someone people turn to receive advice from is his authentic approach. For him, forging personal relationships is more important than making money. While it is definitely a nice perk of what he does, he isn not motivated by it.
Coach Legend’s primary motivation is helping others. It just so happens that he is great at relating with people and motivating them to improve their lives.
These days, this wealth coach is focused on helping with credit repair. That is because the pandemic cleaned out the accounts of many in 2020. With non-essential businesses closing across the country, many had been furloughed, have seen their hours reduced, or were simply let go. This led to financial hardships for millions of people.
Those who sought to buy homes and cars, or wanted to start their own businesses, came up against financial barriers. With a low credit score, it becomes incredibly challenging to get any sort of decent loan. Thankfully, Coach Legend knows what steps need to be taken to improve financial situations and credit scores.
Thanks to his helpful advice, countless people have been able to improve their credit scores and financial situations. His clients have been able to get the houses and cars they wanted, and are able to enjoy the financial freedom they thought was beyond them.
Coach Legend knows all too well how limiting it can be to work for someone else or be dependent on someone else for your livelihood. That is why he explored becoming an entrepreneur. He saw other mentors of his unlock financial abundance and sovereignty by becoming their own bosses. That is what he decided to do after learning everything he needed to know. It wasn’t long before Coach Legend was operating several different businesses.
By taking the entrepreneurial path, he was able to say goodbye to hard times and limits on what he could achieve. Becoming financially literate was also instrumental in him accessing the abundance that was waiting for him. Coach Legend now enthusiastically teaches others how to gain financial freedom as well, given his extensive experience with the steps needed to take to unlock it.
Social media has been a tremendous resource for Coach Legend, who has audiences on Instagram, Facebook, and YouTube. There, he dispenses sage advice and extends an invitation to anyone who is looking to improve their financial situation to receive advice and guidance from him.
You can watch some of Coach Legend’s keen insights when it comes to success and mindset by heading over to his Instagram Page.
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