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Home » TikTok Breeds Ad Scams, Pyramid Schemes, Fraudulent Celebrity Endorsements, Study Shows

TikTok Breeds Ad Scams, Pyramid Schemes, Fraudulent Celebrity Endorsements, Study Shows

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TikTok’s #ForYou page has become a haven for scammers and TikTok ad scams, selling fake mobile applications, diet pills, drop-shipped goods, fake gift cards and more, according to data released Thursday.

Satnam Narang, research engineer focusing on security at Tenable, has identified four types of threats on the TikTok platform, ranging from easy-money offers and free offers that come with a price to manipulative drop-ship schemes and outright fraud, quick-cash ad scams that prey on those who may be in dire financial straits.

Children between the ages of four to 14 in the United States, the United Kingdom and Spain now spend an average of 80 minutes per day using the app, putting it on par with YouTube.

Narang says the scams running across the app prey on Gen Z interests with fraudulent celebrity promotions, and false ads for college tuition assistance programs by promising to repair credit card history or by promote online classes as a way to access financial aid.

In July 2020, TikTok became the seventh-most popular social app, behind Facebook, YouTube, WhatsApp, Facebook Messenger, WeChat, and Instagram. The ranking is based on monthly active users, accounts and addressable advertising.

Narang points to two parts of the app that are especially worrisome: the Following page and the For You page.

The Following page contains a feed of videos from the TikTok user that can be followed.

The For You page is populated with videos curated for each user based on TikTok’s algorithm, which takes into consideration several factors such as interests, user interactions, information and device and account settings.

Algorithmically generated, the For You page presents a greater opportunity than the Following page for advertisers to reach users based on their interests.

TikTok ads, from AppleTV+ to Experian, are only seen on the For You Page.

Fake ads also exist. In fact, scammers use the For You Page to run ads.

“One of the shadiest tactics I’ve encountered is…

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