Current:Home > InvestAmericans reported $2.7 billion in losses from scams on social media, FTC says -Wealthify
Americans reported $2.7 billion in losses from scams on social media, FTC says
View
Date:2025-04-13 07:01:18
Online fraudsters have taken billions of dollars from Americans in recent years and they are using social media to do it.
Since 2021, Americans lost $2.7 billion in scams from social media, the Federal Trade Commission said in a scam report published Friday. And that figure is only a fraction of the actual harm, as most cases of fraud go unreported, the agency noted.
People continue to fall victim to social media scams in part because criminals have a trove of techniques they use for finding their prey, Emma Fletcher, a senior data researcher for the FTC, wrote in an analysis of the scam report.
"They can easily manufacture a fake persona, or hack into your profile, pretend to be you, and con your friends," Fletcher said. "They can learn to tailor their approach from what you share on social media."
Most money is lost to scams on social media
The FTC analysis draws on nearly 258,000 social media fraud instances reported directly to the federal agency as well as reports provided by Sentinel Data. One in four people who reported losing money to fraud since 2021 pointed to social media as the origin of the scam. Americans lose money to fraud on social media platforms more than any other method of communication, including websites, phone calls, e-mails, online advertising or mail, the FTC said.
Most cases of fraud on social media this year have stemmed from a user trying to buy clothes, electronics or other goods that had been marketed on Facebook, Instagram or Snapchat, the FTC report reveals. In such instances, a user would order the product, but the item would reportedly never be delivered.
Fletcher said more than half of money reported lost due to social media went to investment scammers. These scammers promote themselves as successful investors but are often just trying to trick people into investing in bogus apps or websites by promising huge returns, she said.
The FTC report said Americans also often fall for so-called "romance scams" via social media, in which case a stranger sends someone a friend request and soon starts asking for money.
More skilled at deceiving victims
Cybercriminals have become more creative and skilled at tricking victims through text messages, by phone and online. Cybersecurity experts say the first defense against scams is looking for telltale signs such as someone creating a sense of urgency while soliciting you for money.
Here are tips provided by the FTC on steering clear of scams on social media:
- Social media users can reduce their chances of getting scammed by limiting the number of people online who can view their posts. All platforms collect information about you from your activities on social media, but visit your privacy settings to set restrictions.
- If you get a message from a friend requesting money or letting you know about a financial opportunity, it may be that their account was hacked by a scammer. Call them up to verify the message, particularly if they ask you to make a payment by cryptocurrency, gift card, or wire transfer.
- Beware if someone reaches out to you on social media to start a friendship or romance. Read here about romance scams. Never send money to anyone you haven't met in person.
- Research any company found on social media before making a purchase. Search its name plus "scam" or "complaint."
You can learn more about how to spot scams, as well as how to recover money if you've been scammed, at ftc.gov/scams. To report a scam, contact the FTC at ReportFraud.ftc.gov.
- In:
- Federal Trade Commission
- Social Media
- Fraud
Khristopher J. Brooks is a reporter for CBS MoneyWatch covering business, consumer and financial stories that range from economic inequality and housing issues to bankruptcies and the business of sports.
TwitterveryGood! (37)
Related
- The FTC says 'gamified' online job scams by WhatsApp and text on the rise. What to know.
- FAA to investigate drone that delayed Ravens-Bengals game
- Virgin Galactic launches fifth commercial flight to sub-orbital space and back
- Escaped murderer back in court over crimes authorities say he committed while on the run
- Illinois Gov. Pritzker calls for sheriff to resign after Sonya Massey shooting
- Emma Chamberlain Details New Chapter After Breakup From Role Model
- Greek authorities conduct search and rescue operation after dinghy carrying migrants capsizes
- Brewers make tough decision to non-tender pitcher Brandon Woodruff
- Scoot flight from Singapore to Wuhan turns back after 'technical issue' detected
- Defeated Virginia candidate whose explicit videos surfaced says she may not be done with politics
Ranking
- A steeplechase record at the 2024 Paris Olympics. Then a proposal. (He said yes.)
- Godmother of A.I. Fei-Fei Li on technology development: The power lies within people
- West Virginia training program restores hope for jobless coal miners
- Death toll from floods in Kenya, Somalia and Ethiopia rises to 130
- 51-year-old Andy Macdonald puts on Tony Hawk-approved Olympic skateboard showing
- Virgin Galactic launches fifth commercial flight to sub-orbital space and back
- Mistrial declared for Texas officer in fatal shooting of unarmed man that sparked outcry
- World's first gene therapy for sickle cell and thalassemia approved in the U.K.
Recommendation
Are Instagram, Facebook and WhatsApp down? Meta says most issues resolved after outages
Madagascar’s incumbent President Rajoelina takes early lead in vote marked by boycott, low turnout
Prosecutors prep evidence for Alec Baldwin 'Rust' shooting grand jury: What you need to know
Sean 'Diddy' Combs and singer Cassie settle lawsuit alleging abuse
From bitter rivals to Olympic teammates, how Lebron and Steph Curry became friends
Brewers make tough decision to non-tender pitcher Brandon Woodruff
ChatGPT-maker Open AI pushes out co-founder and CEO Sam Altman, says he wasn’t ‘consistently candid’
George Brown, drummer and co-founder of Kool & The Gang, dead at 74