More than 5.2 billion people worldwide use social media, a figure that has doubled since 2015. In 2024, the Federal Trade Commission estimates that $1.9 billion was lost to scams originating on social media. Online shopping, investment and romance were the most common social media scams in 2023.
Investment Scams
Fake investment scams prey on emotion, particularly the lure of easy money with very little risk. Cryptocurrency’s rise, paired with most people’s limited understanding and experience, has driven an increase in investment scams involving this financial vehicle.
Nearly half the people who reported losing crypto to a scam said it started with an ad, post or message on social media.
Romance Scams
Many romance scams begin on Facebook and Instagram by scammers who woo their targets with fake profiles using stolen photos or identities. The scammers fake common interests to build an emotional connection with their victim. Inevitably, the cyber courtship results in a request for money, whether for surgery, gambling debts or travel costs. Payment requests by gift card are common.
The FTC estimates losses to romance scams at $1.14 billion, with median losses per person of $2,000 – the highest of any imposter scam.
These bad romances found a soulmate with investment scams. The scammer builds trust and then impresses their amour with their sophistication about crypto investing. They help their beloved make investments, which really land in their own pocket.
Shopping Scams
Another favorite scam of cybercriminals is to create fake social media shopping profiles and accompanying internet pages. They locate their targets using social media algorithms and then spoof famous retailers or use high-end brands to entice shoppers looking for a good deal. The products offered are either counterfeit, poor quality or nonexistent. Once the payment is submitted, no matter the con, the money is gone, and credit card information is compromised.
The old adage applies: If it’s too good to be true, it probably is. Opting out of targeted advertising can help you avoid receiving these malicious posts in your feed.
Be Anti-Social with Scammers
Unfriend cybercriminals and keep them off your social media feed. Below are a few best practices to keep in mind:
- Review privacy settings to limit who can see your posts and information.
- Be wary of vendors requiring nontraditional payment methods like cryptocurrency, gift cards or wire transfer.
- Don’t send gift cards or cryptocurrency or wire money to someone you meet online.
- Don’t take investment advice from someone you meet online.
- Use the Federal Trade Commission’s online shopping tips, including checking out the company before making a purchase.
- Don’t click on promotional links; navigate directly to the retailer’s website.
Even savvy social media users can get tripped up by a scam. If you become a victim, be sure to file reports with the Federal Trade Commission and the FBI’s Internet Crime Complaint Center.
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