More money is reported lost to fraud that originated on social media than any other outlet, the Federal Trade Commission (FTC) reports.
From January 2021 to July 2023, social media scams led to $2.7 billion in losses.
The most frequent social media fraud happens when people are trying to make purchases on these platforms. These claims comprise 44% of all kniwn social-media fraud loss, with most claimants reporting undelivered goods, especially clothing and electronics.
However, the largest monetary loss attributed to social-media scams comes from schemes that promote fake investment opportunities. These scammers tout fictional investment success online and then lure others to make bogus "investments."
Fraudsters are often able to appeal to victims by using faux online banking and account applications that make it appear that their investments are growing, though they will never actually receive a penny of those returns.
Romance scams are also a common tactic of social media fiends: posing behind fake identities and photos to draw in unsuspecting victims and then trick them into believing they have a genuine relationship. These scams often begin with a simple friend request, then escalate to love bombing before the perpetrator eventually begins to ask for money.
In the slideshow above, we’ll look at several red flags that could indicate a social media scam.
What can you do if you have paid a scammer?
For those who paid with a credit or debit card, the FTC recommends contacting the company or bank that issued the card to tell them the charge is fraudulent and needs to be reversed. The same steps should be taken if a scammer made an unauthorized transfer from your bank account.
If the payment was made via gift card, call the company that issued the card and let them know it was used in an online scam and ask if they can refund your money. You should hang onto the actual gift card and receipt.
For those who have sent money to a scammer through a money transfer app, their best bet is to contact the company behind the app to explain the situation and ask them to reverse the payment. If the app is linked to your credit card, debit card or bank account, you should report the fraud to your bank, as well.
If you sent cash through the U.S. Postal Service, you can contact the U.S. Postal Inspection Service and ask them to intercept the package. More information about package interception can be found here.
No matter the exact circumstances of your situation, consider making a report about the fraud you've experienced to the FBI's Internet Crime Complaint Center.
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