In the current climate, job losses and financial worries have increased. Unfortunately, this has also led to a rise in the number of online scams in circulation, as desperate consumers search for ways to make money and pay their bills.
There’s certainly no shortage of scams targeting those in desperate need of income. The latest being the “money flipping” scam, which has appeared on various social media platforms in recent weeks and months.
What is the scam?
The latest scam on social media is something known as “money flipping”. The scam promises quick and easy returns on an investment with very little effort involved.
It entails a scammer using social media to “show” others about the scheme, which shows how to make cash on the stock market using simple techniques.
Then, the scammer will offer to invest the money on the victim’s behalf, and they ask for cash – typically between $300 and $800 – to be sent to them via a digital wallet like Cash App.
When victims ask for their money back, the scammer will then tell them the digital wallet will charge a fee to return it. Or, in some cases, they are told they must pay taxes on their profit, which means they are left with nothing.
How consumers can protect themselves
In this scam, the scammer has no intention of returning any of the money. And, the claims that they can make large profits are completely false.
The Better Business Bureau says that Cash App is aware that the scam is currently circulating and will aim to put measures in place to try and protect the public.
But, in the meantime, consumers should be aware of this and need to be extra vigilant online. When sending money using these types of apps, the money cannot be retrieved afterwards.
When using social media, consumers should always be skeptical of any “money making” offers that they see – if it seems too good to be true, it probably is!
In particular, it’s important to be skeptical of strangers offering to help you get rich when they’re claiming to want no payments in return. Remember, always look for red flags and if you see anything suspicious, report it to the relevant platform as soon as possible!