The Federal Trade Commission (FTC) has said that since 2021, individuals have lost over US $2.7 billion to fraud through social networks.
The primary method scammers use to reach their victims are social media networks. The most common scams reported on social media during the first half of 2023 were related to online shopping, specifically clothing and electronics. In these cases, victims purchase items advertised on platforms like Facebook, Instagram, or Snapchat but never get the products.
People also lost money to fake investment opportunities and romance cons. Scammers often entice victims with promises of financial success using cryptocurrency but ultimately leave victims empty-handed and with empty wallets. During the first half of 2023, reported losses from these scams amounted to $658 million, with 8% attributed to online shopping trickery, 53% to investment scams, 14% to romance scams, and 27% classified as “other.” It’s important to note that the reported losses represent only a fraction of the actual harm caused by online fraud. Additionally, the FTC found that younger individuals, particularly those aged 20-29, are more susceptible to social media fraud and more likely to report it.
The FTC has urged users to be wary of social media scams, as they had resulted in losses of at least $650 million this year alone.
