Social Media Fraud Accounts for One-Third of All Scam Victims

Social media has emerged as a hotbed for fraudulent activities, with nearly 30% of reported scams in 2025 originating on these platforms, according to a recent Federal Trade Commission (FTC) report. The financial toll of these scams has reached a staggering $2.1 billion, representing an eightfold increase since 2020.

Experts believe the actual figures could be substantially higher, as most scams go unreported to government agencies. The digital landscape provides ideal conditions for swindlers to operate, allowing them to create fake profiles, hack existing accounts, and target users’ friend networks with precision.

What makes social media particularly effective for scammers is their ability to exploit user data. Fraudsters can tailor their approaches based on personal information shared in posts and can utilize the same sophisticated targeting tools that legitimate businesses use to track demographics, interests, and consumer behaviors.

The FTC data reveals a concerning trend across age demographics. For nearly all age groups except those over 80, social media has become the primary channel through which people lose money to scams. Even among octogenarians, social media scams rank second only to telephone fraud.

Shopping scams represent the most commonly reported category, accounting for more than 40% of social media fraud cases. Victims typically encounter enticing advertisements that direct them to unfamiliar websites where they pay for products that either never arrive or turn out to be counterfeit items. Reports indicate many of these counterfeit goods are shipped from China, with return shipping costs often making returns impractical.

Internal documents from Meta, Facebook’s parent company, identified China as the top “scam exporting nation,” with approximately one-quarter of all fraudulent ads on Meta platforms originating from Chinese sources.

While shopping scams are most common, investment scams cause the most financial damage. These sophisticated operations accounted for over half of all reported losses—approximately $1.1 billion. The approach typically begins with advertisements promising to teach investment strategies or invitations to join WhatsApp groups supposedly filled with successful investors.

These investment scams operate as long-term confidence schemes. Victims are directed to fraudulent investment platforms where they initially see fabricated profits and may even be permitted to withdraw small amounts—all designed to build trust and encourage larger investments. When victims eventually lose money, secondary scammers often approach them with false promises to recover losses for additional fees.

Romance scams also continue to be a significant threat. Nearly 60% of romance scam victims in 2025 reported that the deception began on social media platforms. Fraudsters leverage personal information from user profiles to create targeted approaches, often fabricating emergencies requiring financial assistance or promoting fake investment opportunities. Some romance scammers request intimate photos and then extort victims by threatening to share the images with their social connections.

Housing scams represent another growing concern. A recent analysis found that approximately half of all fake rental listings were posted on Facebook, targeting people desperate for housing in competitive markets.

Americans appear particularly vulnerable to online fraud, facing nearly 100 scam attempts monthly—the highest rate globally. Facebook dominates the social media scam landscape, accounting for 85% of reported social media fraud cases, with WhatsApp and Instagram trailing far behind.

Financial incentives may be slowing platform response to these issues. Reuters previously reported that Meta projected earning $16 billion—approximately 10% of its revenue—from questionable advertisements. The company allegedly allows high-risk advertisers to continue operating in exchange for higher fees, a system that experts describe as essentially “pay to play” for bad actors.

To protect yourself from social media scams, the FTC recommends restricting who can view your posts and contacts through privacy settings, avoiding investment decisions directed by social media-only acquaintances, and researching companies before making purchases by searching their name plus “scam” or “complaint.”

For more information about identifying, avoiding, and reporting scams—or recovering funds lost to scammers—visit ftc.gov/scams or report incidents directly through ReportFraud.ftc.gov.