Chinese TikTok’s Dark Side: How Influencers Turned the Platform into a Scam Haven – What U.S. Users Must Know

Chinese TikTok Becomes a Fraudsters’ Playground: Lessons for the U.S. Amid TikTok's Explosive Growth

As TikTok continues its meteoric rise in the U.S. market, with the expansion of TikTok Shops and increasing numbers of users in 2024, the platform is also facing a troubling reality. Its Chinese counterpart, Douyin, along with other short-video platforms like Kuaishou, has become overrun with scammers and swindlers. These platforms, originally meant for entertainment and commerce, have turned into breeding grounds for fraudulent activities, raising serious concerns about how the U.S. can avoid the same fate. Influencers, or Key Opinion Leaders (KOLs), who once thrived as trustworthy sources of information and products, are now at the center of these scams. This article delves into these issues and outlines key lessons for U.S. users to protect themselves.

Fraud on the Rise: Douyin (Chinese Tiktok) and Kuaishou’s Scammer Crisis

In China, short-video platforms such as Douyin (Chinese Tiktok) and Kuaishou have become notorious for scams. The very influencers who once built their reputation on authenticity and trust have now become key players in fraudulent schemes. These platforms are plagued with:

Bogus product promotions: Influencers are luring followers with counterfeit goods or low-quality products, often sold at steep discounts through live streams or TikTok Shops. Many victims report receiving poor knockoffs or nothing at all after their purchase, with the scammers disappearing once sales are completed.
Investment fraud: KOLs have increasingly been posing as financial gurus, offering followers false stock tips, cryptocurrency scams, or fraudulent "get-rich-quick" schemes. These schemes have led to massive financial losses for unsuspecting followers. Some scams, such as fake crypto giveaways, are designed to steal personal information or siphon money from users.
Phishing scams: Fake accounts posing as celebrities or brands promote "giveaways" that are actually designed to steal login credentials or spread malware. These scams often look like legitimate promotions, fooling thousands of users into compromising their personal information.

With TikTok's rise as a major social media and e-commerce platform, it has become a fertile ground for scams. And as TikTok Shops grow in the U.S., the threat of such criminal activity spilling over from China is becoming more likely.

Scandals That Shook the Industry: The Rise and Fall of Influencers

Two of the most high-profile fraud cases on Chinese social platforms underscore the dangers users face.

Case 1: "Northeast Rain Sister" – From Fame to Fraud

"Northeast Rain Sister" became a prominent internet celebrity in late 2023, known for her high-energy videos showcasing rural life. In just 52 days, her follower count skyrocketed from 100,000 to 5 million, which rose further to more than 20 million followers recently. However, her rapid rise was followed by a series of scandals that exposed her fraudulent practices:

Sweet Potato Noodles Incident: Rain Sister was accused of selling cassava starch noodles while falsely marketing them as sweet potato noodles. The investigation, conducted by officials in Benxi County, Liaoning Province, concluded that the products were misrepresented. On October 12, 2023, she was fined 1.65 million yuan, and her business operations were suspended.
Oil Stain Remover Scandal: More recently, Rain Sister faced allegations of selling underweight oil stain remover products, with units being up to 20% lighter than advertised. If confirmed, this could result in compensation claims exceeding 100 million yuan, as the product sold over 1.86 million units.
Staged Content: She has also been accused of staging videos, including a crab-harvesting clip, and falsely advertising goose products back in 2022.

Her downfall serves as a cautionary tale about the risks of rapid internet fame, as well as the consequences of misleading consumers. Despite her efforts to apologize, her reputation has been permanently damaged, and legal consequences loom.

Case 2: Da Lan – Fitness Coach Turned Fraudulent Stock Guru, Harvesting more than $10 Million per Year

Lan Tianhang, better known as Da Lan, transitioned from a fitness coach to a financial KOL, amassing millions of followers on Douyin. His downfall began when he started posting stock market predictions that promised quick gains. Here’s how his story unfolded:

Stock Market Predictions: Around the National Day holiday in 2024, Da Lan posted multiple videos promoting specific stock picks and claiming to have predicted successful market movements. These videos gained him nearly 1 million new followers in just over a week. However, when the stock market took an unexpected turn, many of his followers faced significant financial losses.
Revenue Streams: Da Lan had built a thriving business by selling online courses on stock trading, ranging in price from 19.9 yuan to as much as 298,000 yuan. His "Private Board" membership, with fees as high as 98,000 yuan, alone garnered over 70 million yuan from more than 700 members.
Account Ban and Fallout: On October 11, 2024, Douyin permanently banned Da Lan’s account for violating its guidelines. Many of his previous videos were deleted, and the backlash from disgruntled followers who lost money under his guidance intensified. His story highlights the dangerous intersection of unregulated financial advice and influencer marketing, leading to devastating consequences for followers.

U.S. Users Beware: Protecting Yourself from TikTok Scams

As TikTok Shops continue to expand in the U.S. in 2024, it is crucial that users remain vigilant and learn from the fraud issues faced by Chinese users. Here are several ways to protect yourself from scams on TikTok:

1. Verify Sellers Before You Buy

Lesson: Not every seller on TikTok Shops is legitimate. Scammers frequently set up fake shops or sell counterfeit goods.
Action: Check for seller verification, read reviews, and conduct off-platform research. Verified sellers often have badges, and established brands will have a presence beyond TikTok.

2. Be Skeptical of Deep Discounts

Lesson: Scammers use enticing discounts or exclusive deals to sell fake products.
Action: If an offer seems too good to be true, it probably is. Be cautious of deeply discounted products and unverified influencer promotions.

3. Avoid Suspicious Links in Bios and Comments

Lesson: Scammers often place phishing links in TikTok bios or comments, disguised as promotions.
Action: Avoid clicking on unfamiliar or generic-looking links. Use link preview tools to check URLs before visiting them.

4. Watch for Imposter Accounts

Lesson: Scammers create fake accounts pretending to be celebrities or popular influencers to promote fraudulent giveaways.
Action: Verify the authenticity of any account by looking for a blue verification checkmark or by cross-checking their presence on other platforms.

5. Avoid Upfront Payments for Prizes or Giveaways

Lesson: Legitimate promotions don’t ask for payment upfront.
Action: Don’t fall for scams that request personal information or payments in exchange for giveaway entries. Report such requests immediately.

6. Don’t Trust Financial Advice from Influencers

Lesson: Financial scams are on the rise, with influencers promoting fake investments and stock tips.
Action: Seek financial advice only from licensed professionals. Avoid making investment decisions based on unregulated advice from influencers.

7. Use Secure Payment Methods

Lesson: Scammers often aim to steal your payment information.
Action: Use secure payment methods like credit cards or PayPal, which offer more protection and allow for disputes in case of fraud.

8. Report Suspicious Activity

Lesson: Scammers thrive when they go unreported.
Action: If you encounter a suspicious account, report it to TikTok through the "report a problem" feature. This helps prevent future victims from falling prey to scams.

Conclusion: Vigilance is Key Amid TikTok’s U.S. Growth

While TikTok is a powerful platform for social engagement and e-commerce, the growing number of scams and fraudulent activities is a cause for concern. As seen in China with influencers like Northeast Rain Sister and Da Lan, even seemingly trustworthy content creators can exploit their followers. U.S. users must remain cautious, verify sellers and influencers, and follow protective measures to avoid becoming victims of fraud. With TikTok's continued growth, safeguarding yourself has never been more crucial.