Social media scams fuel $2.1 billion in losses, FTC warns
Fraud Watch: Investment schemes, fake ads, and romance cons drive surge
Reported losses hit $2.1 billion — an eightfold jump since 2020
New data from the Federal Trade Commission show that social media has become the dominant launchpad for scams, with billions of dollars in consumer losses tied to platforms like Facebook, Instagram, and WhatsApp.
According to the agency’s latest Data Spotlight, nearly 30% of people who reported losing money to a scam in 2025 said it began on social media — totaling a staggering $2.1 billion in reported losses. That figure represents an eightfold increase since 2020 and far exceeds losses tied to any other method scammers use to contact consumers.
Why social media is a scammer’s dream
The FTC says social platforms give fraudsters unprecedented reach at minimal cost. Scammers can:
Hijack existing accounts to exploit trusted relationships
Mine user posts to tailor highly personalized pitches
Buy targeted ads using the same tools as legitimate businesses
“Social media creates easy access to billions of people from anywhere in the world,” the report notes, making it easier than ever to find and manipulate potential victims.
Among platforms, Facebook generated the highest reported losses by a wide margin in 2025 — more than all text and email scams combined. Instagram and WhatsApp ranked a distant second and third.
Who’s being targeted
The data show that social media scams now affect nearly every age group.
Consumers under 80 reported losing more money to scams that started on social platforms than through any other contact method. For those 80 and older, social media ranked second only to phone-based scams.
The findings underscore how fraud tactics have evolved beyond traditional robocalls and phishing emails into more immersive, relationship-based schemes.
The biggest social media scams
Investment scams dominate losses
Consumers reported losing $1.1 billion to investment scams that originated on social media — more than half of all social media-related losses.
These scams often begin with:
Ads promising to teach investing strategies
Messages from “friendly” financial advisers
Invitations to group chats filled with fake success stories
Victims are typically lured onto fraudulent investment platforms that appear legitimate but ultimately steal deposits.
Shopping scams are most common
More than 40% of victims who lost money to a social media scam said it involved a purchase.
Typical patterns include:
Ads for steeply discounted products
Links to unfamiliar or lookalike websites
Impersonations of well-known brands
Consumers reported ordering everything from clothing and cosmetics to auto parts — and even pets — only to receive nothing or counterfeit goods.
Romance scams blend emotion and money
Romance scams remain a major threat, with nearly 60% of reported losses in this category starting on social media.
Scammers often:
Build relationships using tailored profiles and shared interests
Create emotional bonds over time
Invent emergencies or steer victims into fake investment opportunities
These schemes can lead to devastating financial and emotional harm.
What this means for consumers
The FTC’s data highlight a major shift: scams are no longer just random messages — they’re increasingly personalized, persistent, and embedded in everyday online activity.
For consumers, that means:
Higher exposure: Simply using social media increases scam risk
More convincing tactics: Fraudsters exploit personal data and social connections
Greater financial stakes: Losses are rising rapidly, especially in investment schemes
The agency warns that the same tools that make social media convenient — targeted ads, messaging, and algorithmic recommendations — are also being weaponized by scammers.
How to protect yourself
The FTC recommends several steps to reduce risk:
Lock down privacy settings: Limit who can see your posts and contact you
Avoid investment advice from strangers: Especially those met only online
Research before buying: Search a company’s name with terms like “scam” or “complaint”
Be skeptical of urgency: High-pressure tactics are a common red flag
Consumers can learn more and report fraud at the FTC’s official site, including its ReportFraud portal.
The bottom line
Social media has become the front door for modern scams — combining global reach, detailed personal data, and low-cost targeting into a powerful tool for fraud.
With losses now in the billions and rising sharply, regulators say awareness and vigilance are critical. But the scale of the problem also raises broader questions about platform accountability — and whether stronger safeguards are needed to protect users from an increasingly sophisticated fraud economy.