Money laundering on TikTok can take several forms, but the primary methods involve the use of TikTok’s virtual gifts and payment systems. Here’s a brief overview of how it works:
- Virtual Gifts: TikTok allows users to purchase coins with real money, which can then be used to buy virtual gifts for their favorite influencers. These gifts can range from a simple rose for a few coins to a virtual yacht for thousands of coins. Criminals exploit this system by purchasing coins with illicit funds and then sending virtual gifts to their own accounts or to accounts controlled by other criminals. This creates the appearance of legitimate income for the criminals, who can then cash out the diamonds for real money.
- Paying Influencers Directly: TikTok has a system where influencers can receive direct payments from their followers. Criminals can use this to their advantage by sending payments to influencers who are in on the scheme. The payments are made with illicit funds, and the influencers can then send a portion of the money back to the criminals after taking a cut.
- Fake Account Verification: Scammers may send direct messages to TikTok users, posing as the platform’s official account, claiming that users need to verify their accounts to get benefits like verification badges or increased visibility. They then ask for payment for this “verification,” which can be a form of money laundering.
- Recruiting Money Mules: Criminals can use TikTok to recruit people to act as money mules. They may advertise fake job opportunities or offer other incentives to people who are willing to transfer money on their behalf. The money that’s transferred is often the proceeds of illegal activities, and the mules are used to make it harder for law enforcement to trace the money back to the criminals.
These methods exploit the social and financial aspects of TikTok to create a system that can be used for money laundering. It’s important for TikTok users to be aware of these scams and to report any suspicious activity to the platform.