Millions of consumers use Instagram to look through their friends\u2019 vacation photos and post selfies. Unfortunately, scammers follow social media trends too and they\u2019ve made Instagram another tool in their arsenal of tricks to try to defraud consumers. Over the past few months, we’ve received a number of complaints from consumers describing a new variation of the so-called \u201cflipping money\u201d scam on Instagram.<\/p>\n
<\/p>\n
In a typical flipping money scam of this type, a consumer sees an Instagram account featuring photos of other users, often holding large amounts of cash captioned with a description of how easy it is to make turn a small investment into large amounts of money. All the consumer has to do is text or instant message the Instagram account holder and send a small initial \u201cinvestment\u201d (typically a few hundred dollars). Unfortunately for the consumer, the ploy is all a scam. The fraudster quickly breaks contact (after getting the cash in hand) and the consumer loses her initial investment. This a widespread scam. For example, there are more than 45,000 photos on Instagram tagged #flippingmoney. In practically every photo we reviewed, the pitch was a scam.<\/p>\n
There\u2019s a new variation on the flipping money scam, however. In the past, the scammers asked to send the initial \u201cinvestment\u201d via wire transfers or a prepaid debit card. However, in a number of recent complaints, the consumers\/victim is not asked to send money. Instead, they are being asked to mail their physical debit card to the scammer as well as their account PIN, so that a check can be deposited in the account. The consumer\/victim is told by the scammer that she will receive a percentage of the proceeds from the check to compensate her for her trouble.<\/p>\n
If a consumer follows these instructions and sends a debit card, they often quickly see a large deposit in their account. The is almost as quickly followed by a large withdrawal, usually in the full amount of the deposit. and sometimes even more. The deposited check is, in fact, a fake, and the consumer is then left owing their bank money when the check comes back as a fraud.<\/p>\n
A 20 year old consumer from Missouri shared her experience with one scammer on Instagram:<\/p>\n
\u201cI saw an ad on Instagram saying I could make money so I texted the number. The girl\u2019s name was Alexis. She asked me to send her my debit card and she could make me $4,000. Shortly after, her Instagram [account] was deleted. She kept my card for about a week. Today I went into the bank and I owe $6,000. She (Alexis) will not contact me back.\u201d<\/em><\/p>\n To avoid this scam, here are some helpful tips consumers should keep in mind:<\/strong><\/p>\n If you suspect that you might be a victim of this scam, file a complaint with us.<\/p>\n We asked our friends at Instagram what they are seeing, and here’s what they said:<\/p>\n\n