Social Media's Dirty Secret: The Rise of Money Laundering Schemes

 

 Social media giants TikTok and Instagram are raising plenty of eyebrows after they were accused by a law enforcement agency of being involved in some unlawful activities. This includes helping criminals launder money, whether knowingly or unknowingly.

Anyone caught in the act faces prison sentences that could be up to 14 years and they might even be barred on social media from holding or opening accounts inside the bank. Meanwhile, ads put on social media and short video apps are also making the rounds. This is where they showcase people holding huge cash sums and offering great chances to produce funds quickly.

Anyone responding is put in touch with those offering to transfer funds into the account. They are told to do huge money transfers to different places while the rest stays in their pockets. In certain situations, the funds get transferred overseas. In such cases, they could be requested to withdraw that in cash form.

Now whether the apps realize it or not is a different question altogether. But what we can confirm by now is how it assists criminals in money laundering activities which is illegal and a huge criminal act.

As per reports from BBC News, the cases in the UK are on the rise while those taking part don’t realize what jeopardy they’re a part of. One individual had no idea he was involved.

People get ads that entice them to make quick bucks online. They fall into scams and Instagram accounts featuring images of cars, luxury homes, and travel are usual places where it begins. Everything shines at gold except for the fact that it’s not that.

Quick cash ads do lure people into doing some very crazy things and within no time, they’re a part of a conversation with money mules or their recruiters. After text exchanges, bank details get shared and money deposits and withdrawals begin.

As long as the victim follows the instructions they’re good to go but if not, ATMs swallow cards and other mishaps arise where whole accounts shut down immediately. One person shared how they were informed about not getting bank accounts for six years because of the acts they were once a part of. They enter the blacklisted domain. If you want a mortgage, loan, or credit card- you cannot get it.

As per a report from the British NCA regulator, social media is the main means for recruitment into this illegal activity. Both Instagram and TikTok are the common hiding places and that’s why these apps warrant an investigation.

The owner of Meta says it’s worked closely with banks in the country and other investigators to help tackle such crimes. The tech giant’s goal is to put an end to criminal activities, once and for all. During the Spring of 2024, it managed to delete 95% of videos that went against fraud policies. This was even before the incidents were reported. Meanwhile, Snapchat is also routinely called out for such scams. It’s working hard to save illegal material on the app and provide it to authorities, if and when they request it.

So what is the take-home message for all? Well, if the deal seems too good to be true, it’s probably not.