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Technology
01 February 2025

TikTok Ban Sparks Wild Resale Market For Devices

Pre-installed phones listed at exorbitant prices raise security concerns for desperate consumers.

Following the ban on TikTok imposed by the United States government, several pre-installed phones with the app are hitting the resale market at astonishing prices, stirring up concerns about both digital security and market ethics.

The legislation, which formally took effect on January 19, 2025, bans the popular social media app due to security risks tied to its Chinese ownership. This has created what can only be described as the TikTok 'black market,' with used devices featuring the app listed on various online platforms like eBay, Facebook Marketplace, and Etsy for sums resembling the cost of luxury vehicles.

According to the BBC, one eBay seller, who wished to remain anonymous, has put their Samsung Galaxy Note9, typically worth around $250, up for sale at the staggering price of $50,000. "The lowest I'll go is $15,000," the seller stated, reflecting the sense of desperation and opportunism permeated by the TikTok ban.

Some sellers appear to have been inspired by videos circulating on TikTok itself, encouraging the resale of such devices. An individual listing an older iPhone also at the mouthwatering price of $50,000 said, "I did it to see if I get lucky." While these asking prices might seem unreal, they are indicative of inflated expectations within the market.

Though many devices with TikTok pre-installed are listed at outrageous prices, the market reality presents different figures. A variety of completed sales show devices fetched closer to several hundred to just over $1,000, depending on the model. Despite the humor found within these listings, significant risks linger for buyers and sellers alike.

Ryan McGrady, a computer scientist at the University of Massachusetts, Amherst, warns about the potential dangers hidden behind these transactions. He relates the situation to the earlier craze surrounding the mobile game Flappy Bird, which was abruptly pulled by its creator. "It's a bad actor's dream to sell someone a phone... without wiping it first," McGrady explained. Potentially malicious software could come pre-installed on any device being sold, as desperate users chase after the connectedness provided by apps like TikTok.

McGrady's insights underline the growing risks of online fraud, particularly as sellers and buyers navigate this unregulated market. He cautions, "You just have to go back to the lesson of Flappy Bird. Where there's desperation, you're sure to find criminals taking advantage." This could mean opportunistic resellers could implant harmful software on phones, keeping users from realizing until it’s too late.

The ramifications extend beyond individual users to the broader concern about security and privacy data. Since the beginning of the ban, sellers have been attempting to lure TikTok users wary of the ban and seeking to reconnect with their online communities. Unfortunately, this has paved the way for numerous scams, misguiding uninformed buyers down dangerous paths.

With the legal framework concerning data privacy filtering through the United States is often cluttered and ineffective, the TikTok situation highlights systemic issues tied to algorithmic transparency and consumer rights. Legislative action surrounding digital privacy remains fragmented, leaving many consumers vulnerable to market forces.

Interestingly, as the TikTok ecosystem faces turmoil, discussions around potential interventions linger. Just days after the ban was enforced, news emerged indicating Microsoft was engaged in talks to navigate the political repercussions and possibly keep the app alive within American borders. Whether these negotiations will yield tangible outcomes remains uncertain.

While buyers might impulsively pursue these listed devices with the hope of re-accessing TikTok, they should definitely exercise due diligence. Rather than breaking the bank for these exorbitantly priced phones, individuals need to critically analyze the risks associated with such purchases.

For the moment, TikTok may be banned, but its cultural influence remains. The app has developed a loyal following since its rise to fame and its absence is felt deeply among users. Nevertheless, desperate pleas for reconnection to the app, whether through dubious online purchases or alternative methods, could lead to greater predicaments.

The relentless demand for connection amid uncertainty presents troubling scenarios as users grapple with the loss of their digital lifeline. Rather than yielding to impulsive buying decisions, TikTok's fervent followers would do well to exercise caution, considering their digital security.), and recognizing the fleeting nature of such transactions.