Crypto Scammers Are Targeting TikTok Shop Users With AI-Generated Videos, Report Says

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Scammers have been using social engineering techniques, artificial intelligence and malware to target TikTok users, according to cybersecurity firm CTM360.

CTM360 reported last week that scammers were stealing user data and cryptocurrencies using TikTok Shop clones, identifying over 15,000 websites linked to the scheme.

‘FraudOnTok'

The scheme, called "FraudOnTok," lures victims with AI-generated Facebook and TikTok ads mimicking real promotions with hard-to-pass-up offers, CTM360 said.

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Scammers may also approach victims on WhatsApp or Telegram, posing as TikTok affiliates, CTM360 said.

These ads or outreach can lead users to one of two interfaces—a TikTok Shop interface for impending shoppers or a TikTok Shop affiliate management platform clone.

On the shopping front, victims are hoodwinked into making cryptocurrency deposits for non-existent products through urgency tactics like offer countdowns, CTM360 said.

Unsuspecting affiliate hopefuls, on the other hand, are urged to deposit funds to a fraudulent wallet with promises of future commissions or bonuses that never materialize.

"The core motive is fraudulent financial gain, exploiting the trust in online shopping, affiliate earnings, and the irreversibility of certain payment methods," CTM360 said.

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In addition to the "advance fee scam," scammers also nudge victims to download an application loaded with a variant of the so-called SparkKitty malware, which steals sensitive data on the victim’s device.

Billions At Risk

While TikTok Shop is officially available in only 17 countries, the FraudOnTok scheme targets users worldwide, CTM360 said. This means the platform’s nearly 1.6 billion monthly active users are at risk of the scam.

But it remains unclear how many users have been affected and how much has been lost. It is also unclear whether any of the fraudulent domains or applications have been taken down since CTM360's report.

CTM360 did not immediately respond to a Benzinga request for comment.

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CTM360's FraudOnTok report comes as blockchain-focused security outfit Chainalysis has warned that losses to cryptocurrency hacks and scams could be on track to hit a record $4 billion this year. According to Chainalysis, over $2 billion was lost in the first half of the year alone.

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How To Stay Safe From The FraudOnTok Scheme

The FraudOnTok scheme is another instance highlighting the growing sophistication of cryptocurrency scams and the need for users to stay alert on popular social media platforms. Below are some tips to stay safe:

Be wary of offers that appear too good to be true; they likely are. Double-check and verify URLs before clicking. As highlighted by CTM360, clone TikTok Shop sites often use "free or low-cost top-level domains" such as .top, .shop and .icu. Only download applications from official sources and publishers. Avoid signing up for programs that require upfront payments. Avoid storing sensitive information such as your cryptocurrency wallet seed phrases on your phone or computer. Enable two-factor authentication wherever possible and monitor unusual logins. Always report suspicious social media ads and accounts.

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This article Crypto Scammers Are Targeting TikTok Shop Users With AI-Generated Videos, Report Says originally appeared on Benzinga.com

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