Money Flipping

Welcome back to Fraud Fridays! Today, we will be covering money flipping!

We will be answering the burning question of: Can you turn $200 into $2000 by "flipping" it on social media sites?

No.

That's it for this week on Fraud Fridays! No, obviously not.

What is money flipping and where do you encounter it? This scam has become prevalent throughout social media sites. If you can name a social, I can guarantee that this scam has been perpetrated through that site. So, what is it?

The concept of money flipping is simple, a false promise. In this case, it starts with a post. These posts will endorse "money flipping." They will often contain a picture of cash (usually a substantial amount) while the text will boast about how little money can be "flipped" into such large amounts. The poster's profile will seem legitimate, often including pictures, followers, and even "thank you" posts from alleged "investors."

If a user does message one of these scammer's pages, they will respond, directing their new mark to send funds. The most common fashion for this scam is prepaid debit cards. The "investor" will ask for the card number and PIN of the debit card stating that this is how they accept your "investment." They will add the claim that the money will be flipped and ensure your returns. The card # and PIN you gave the scammer allows them to immediately withdraw the funds from the prepaid card. This step is usually promptly followed up with the scammer blocking their mark from future contact.

So, being out all that money is horrible. How do you avoid it? As with any scam, the regular red flags are there, so let's dive a bit deeper.

1.) Before blindly taking them at their word, do some research on the "investor." Search the web with their username and phone number. This will often bring up reviews and complaints from former victims.

2.) Prepaid debit cards are the same as cash!! Of course I don't mean that literally, but it is a good way to look at gift cards and prepaid cards. Remember to treat prepaid debit cards as if they were cash. Anyone with the card number and pin will be able to withdraw the money. If you wouldn’t give a stranger cash then don’t give them the account information.

3.) As with any scam, trust your gut/instinct. If it seems too good to be true, it is. Users should trust their instincts and use common sense when trying to supplement their income. Get rich quick schemes rarely have the payback they promise. You'd have better chances on the lottery. At least they won't steal your life savings.

4.) Be Aware of Hacker Hostages - While you may share similar interests with your online friends, you shouldn’t trust their online content as it may not actually be them liking and sharing the posts you see. Hackers may have taken over their accounts or they may be victim to clickjacking, a technique used by scammers to trick people into clicking something they normally wouldn’t. The person you're talking to may not be who you think it is.

If you believe that you or someone you know has become a victim of these scams, you can file a report and complaint here: https://coag.gov/file-complaint/

Thank you for stopping by and have a fantastic Friday!