FTC reveals alarming $2.7 billion losses by Americans in social media scams

Online fraudsters have swindled billions of dollars from Americans in recent years, and they are utilizing social media as their tool of choice. According to a report published by the Federal Trade Commission (FTC) on Friday, Americans have lost a staggering $2.7 billion to social media scams since 2021. However, this figure only represents a fraction of the actual harm caused, as most cases of fraud go unreported, as noted by the agency.

Emma Fletcher, a senior data researcher for the FTC, highlighted that people continue to fall victim to social media scams due to the wide array of techniques employed by criminals. “They can easily create a fake persona or hijack your profile, pretending to be you and deceiving your friends,” Fletcher explained. “They can tailor their approach based on the information you share on social media.”

According to the FTC analysis, one in four individuals who reported financial losses due to fraud since 2021 attributed the scam to social media. This makes social media platforms the primary method through which Americans lose money to fraud, surpassing websites, phone calls, emails, online advertising, and mail, according to the FTC.

The FTC report also revealed that the majority of social media fraud cases this year were related to the purchase of goods, such as clothes or electronics, advertised on platforms like Facebook, Instagram, and Snapchat. In these instances, individuals would place an order, only to never receive the product.

Fletcher further highlighted that over half of the money lost to social media scams went to investment scammers. These fraudsters often pose as successful investors, enticing people to invest in fake apps or websites by promising substantial returns.

Additionally, the FTC report emphasized the prevalence of “romance scams” on social media. In these scams, strangers send friend requests and eventually ask for money.

Cybercriminals have become increasingly skilled at deceiving victims through various channels, including text messages, phone calls, and online platforms. Cybersecurity experts stress the importance of looking for telltale signs of scams, such as creating a sense of urgency while soliciting money.

The FTC offers tips to avoid falling victim to social media scams:

• Limit the number of people who can view your posts on social media platforms by adjusting privacy settings.
• If you receive a message from a friend requesting money or informing you of a financial opportunity, verify the message by calling them, especially if they ask for payment through cryptocurrency, gift cards, or wire transfers.
• Exercise caution if someone on social media initiates a friendship or romance. Be skeptical and never send money to someone you haven’t met in person.
• Before making a purchase from a company found on social media, conduct thorough research and search for any reports of scams or complaints.

For more information on identifying scams and recovering money if you have been scammed, visit ftc.gov/scams. To report a scam, contact the FTC at ReportFraud.ftc.gov.