The issue of cryptocurrency giveaway scam on TikTok has recently escalated, with numerous scams flooding the video-sharing platform. These scams often use themes related to Elon Musk, Tesla, or SpaceX. Moreover, it offers quick and easy cryptocurrency gains. However, this trend has been around for a while. For years, it was available on other social media platforms like Instagram and Twitter.
The scammers create fake websites that mimic legitimate crypto exchanges or giveaway hubs. This is where users are lured into creating accounts and promised free cryptocurrency rewards. Unfortunately, these scams are elaborate traps that steal deposited cryptocurrency, leaving victims empty-handed.
What is Elon Musk’s Fake Crypto Giveaway Scam?
The increasing popularity of TikTok has become a lucrative hunting ground for scammers. Fake cryptocurrency giveaways on the platform have become a common sight. They are often presented in the form of videos featuring deepfake clips of Elon Musk being interviewed on reputable networks.
These scams promise quick and easy cryptocurrency gains, but in reality, they are elaborate traps that steal deposited cryptocurrency, leaving victims empty-handed. It’s worth noting that although TikTok has taken measures to combat deepfake content, these scams continue to persist on the platform.
How does the Giveaway Scam Work?
Many of the fraudulent Elon Musk giveaway scams redirect users to websites that have domains that are very similar to legitimate ones, such as bitoxies[.]com, moonexio[.]com, altgetxio[.]com, and cratopex[.]com. To take part in the giveaway, users must create an account and enter a promo code available in the TikTok video.
Once the code is entered, the website displays that Bitcoin has been transferred to the user’s wallet, creating an illusion of instant wealth. However, to withdraw the “free” Bitcoins, users are pressured into activating their accounts by depositing a certain amount, such as .005 Bitcoins, which is worth roughly $132. Unfortunately, this is where the scammers disappear with the deposits, and victims are left with nothing.
Adding to the problem, victims share KYC information, it might compromise legitimate cryptocurrency accounts.
Tips to Avoid Giveaway Scam
Scams are common these days. Here are some tips which will help to keep businesses safe and avoid scams.
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Be Aware of Huge Returns
Usually, free money or high-return promises are scams. If an offer looks like it’s too good to be true, it might really be. Hence, always make good judgement and act accordingly.
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Research First
Always research a person if you meet them on TikTok. Check their name, contacts, and previous posts, and also check if it is a genuine account. If the account has scammed others before, you will find comments as such, and make informed decisions.
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Stay Away From Threats
It’s not uncommon for scammers to use scare tactics to convince their victims to act quickly or to pay additional fees. They may try to pressure you into making a hasty decision or threaten legal action if you don’t comply. It’s important to recognize these tactics as warning signs of a scam and not give in to them. Always take the time to research and verify any investment opportunity before making a decision.
Also Read- Cryptocurrency Intelligence and Analysis Tool (CIAT) Launched by India To Fight Cyber Fraud
Final Words
Despite attempts to combat giveaway scams, they are still widespread on social media platforms. Given the profits of such scams, it is likely to diminish anytime soon. The Federal Trade Commission (FTC) highlights the severity of the situation. Thereafter, revealing that crypto scams result in losses of around $80 million since October 2020.
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