MASAK to Investigate Short Video Hosting Platform, TikTok Over Money Laundering Allegations

MASAK is investigating the scammers involved in money laundering on TikTok. Over the serious allegations of tricking people through virtual currency, authorities examined the case of monetary scams and financing terrorism.

Massively popular TikTok turned out to be a place of scam in Türkiye. MASAK, the Financial Crime Investigation Board reported transactions of approximately $82 million through this short video hosting platform. Since January 2021, TikTok users have transferred a huge amount. According to the reports, the acquired money was sourced through a small number of users. Scammers used some accounts to carry out fraud including money laundering and financing terrorism.

With about 29 million users, this video platform is in vogue in Türkiye. Unfortunately, it’s been used by scammers for money laundering and different frauds as they use other social media platforms for this purpose. MASAK is investigating TikTok over the allegations of money laundering as fraudsters created fake accounts for donations. According to the initial findings by the watchdog, some users asked for donations through fake accounts to dodge people and get funds to their original accounts. Scammers used TikTok to loot people through live streaming that involves nothing but a still photo or black screen. It dealt the confidence of people on such platforms a mighty blow as billions of people use it on a daily basis. 

As per the report by MASAK, the scams were done with stolen credit cards used in money laundering. Another report said that this fraud is somehow linked to a terrorist group directly or indirectly. The investigation reported that such scammers are affiliated with terrorist groups and use social media platforms to loot people online. They avoid surveillance and facilitate cash transfers while endeavouring to escape easily.

Different other social media platforms have been prey to such scams for a long. Twitch is another such example. Authorities detained suspects in an operation over serious fraud claims. Collaborating with Twitch users, such fraudsters with a huge number of followers endorse them with cash via stolen sources including credit and debit cards. Only the virtual currency “bits” for the users are accepted by Twitch in order to endorse steamers. The scammers give away the virtual currency payment through stolen cards, and in return, they receive cash from steamers. 

Suggested Read: SA Banks at High Risk of Money Laundering & Terrorist Financing, Says Prudential Authority Report