The rise of social media platforms is a phenomenon that is a decade older. The success and popularity of Facebook enticed more organizations to think up new models for social media forums that are targeted to different demographics and regions. When a relatively new digital trend mixes and matches with the social media hype, it generates many issues in its wake.
The regulatory framework for digital currencies and crypto-related projects is almost non-existent in the present era. This makes it easier for the threat actors to commit organized crimes on various social media platforms without the fear of legal persecution. Crypto-related enterprise does not come under the radar of financial watchdogs if they fail to produce evidence of authenticity for advertising on social media forums.
TikTok Influencer Unknowingly Promoted Crypto-Related Scam
Matt Lorion is a well-known TikTok influencer with millions of followers. As an influencer appealing to Gen Z, Lorion took part in the promotion of a crypto-related scam. Mando’s new token was launched by a scam group posing to have ties with Disneyplus new show Mandalorian.
Lorion later apologized to his followers, and two weeks after the launch, the Mando coin website and Twitter account went offline without any warnings. Lorion revealed that the coin had no ties with Disney Corporation, and he had also invested $10,000 in the said project. He told his followers that his team would conduct thorough research on any new crypto-related projects in the future. In this manner, scammers are using unintelligible TikTok influencers to pump and dump fake coins.
These stories of unsuspecting victims losing money due to false social media advertisements keep on piling. Teresa Jackson, a 63 years old retired senior citizen, similarly lost 120,000 euros. She told the media that the Bitcoin investment scam was being advertised on Instagram, allowing her to establish trust in the scam business.
On the other hand, Telegram crypto groups regularly arrange pumping rounds for different crypto-related projects. The infamous WallStreetBets community behind the GameStop short also operates on the Telegram in the same manner. Erica Stanford, the founder of the crypto curry club, claims that most of these pumps are scam projects; however, it is not possible to distinguish them very easily.