Consumers Lost $2.1 Billion to Social Media Scams in 2025, FTC Reports

By Linda Park, Technology Editor

Social media has become the costliest frontier for consumer fraud, with reported losses skyrocketing to $2.1 billion in 2025—an eightfold increase since 2020, according to new data from the Federal Trade Commission (FTC). The agency’s latest report, released on April 27, 2026, reveals that nearly 30% of all fraud victims who reported financial losses last year traced the scam’s origin to a social media platform. The findings underscore how fraudsters are exploiting the reach, targeting tools, and perceived trustworthiness of platforms like Facebook, Instagram, and WhatsApp to deceive users at an unprecedented scale.

“Social media can be a great way to connect, but it can also make a scammer’s job easier,” the FTC wrote in its report. “They might hack into your account to scam your friends or even create entirely fake profiles. Or they might use what you post to figure out how to target you.” The agency’s data shows that social media scams now account for higher losses than any other method scammers use to contact consumers, including phone calls, emails, or text messages.

The Anatomy of a $2.1 Billion Problem

The FTC’s report highlights that Meta-owned platforms—Facebook, Instagram, and WhatsApp—were the most commonly cited in fraud reports. Facebook alone accounted for more reported losses than any other platform, surpassing even traditional scam vectors like email phishing or phone-based cons. The sheer scale of social media’s user base, combined with sophisticated ad-targeting algorithms, has given fraudsters a low-cost, high-reward playground to exploit.

Investment scams emerged as the leading category of fraud, responsible for approximately $1.1 billion in losses in 2025. These schemes often lure victims with promises of high returns on cryptocurrency, stocks, or other financial products, only to disappear with their money. Romance scams, where fraudsters build fake relationships to extract funds, were the second-most costly, followed by online shopping scams, where consumers pay for products that never arrive.

The FTC’s data also reveals a troubling trend: younger adults are increasingly falling victim to social media scams. Although older adults have historically been the primary targets of fraud, the report notes that consumers aged 18–34 were more likely to report losses from social media scams than any other age group. This shift reflects the growing reliance on social media for financial advice, shopping, and even dating among younger generations.

How Scammers Exploit Social Media’s Strengths

Social media platforms offer fraudsters several advantages that traditional scam methods cannot match. For one, the global reach of platforms like Facebook and Instagram allows scammers to target billions of users with minimal effort. Unlike cold calls or spam emails, which often rely on volume and luck, social media scams can be highly personalized. Fraudsters use the same ad-targeting tools as legitimate businesses to tailor their pitches based on users’ interests, age, location, and even past online behavior.

“Scammers can create fake profiles that gaze indistinguishable from real users,” said an FTC spokesperson in the report. “They can impersonate friends, family members, or even celebrities to gain trust. And given that social media is designed for sharing, a single compromised account can quickly spread a scam to hundreds of unsuspecting contacts.”

Another factor contributing to the rise of social media scams is the perceived legitimacy of the platforms themselves. Many users assume that ads or posts on Facebook or Instagram have been vetted for authenticity, making them more likely to trust offers that appear in their feeds. This false sense of security is compounded by the fact that scammers often use stolen images, fake testimonials, and even fabricated news articles to lend credibility to their schemes.

The Most Common Social Media Scams—and How to Spot Them

The FTC’s report outlines several red flags that consumers should watch for when engaging with content on social media:

• Investment Scams: Be wary of “get rich quick” schemes, especially those involving cryptocurrency or forex trading. Scammers often use fake celebrity endorsements or fabricated success stories to lure victims. Always verify the legitimacy of an investment opportunity by searching for the company’s name along with terms like “scam” or “complaint.”
• Romance Scams: If someone you’ve met online professes love quickly and then asks for money, it’s likely a scam. Never send money to someone you haven’t met in person, and be cautious of individuals who avoid video calls or in-person meetings.
• Online Shopping Scams: Fake online stores often advertise products at steep discounts, only to take your money and deliver nothing. Check for reviews from other customers, and be suspicious of sellers who only accept payment through wire transfers, gift cards, or cryptocurrency.
• Impersonation Scams: Scammers may hack into a friend’s account or create a fake profile to impersonate someone you understand. If a friend or family member suddenly asks for money or personal information, verify their identity through another channel before responding.
• Fake Giveaways and Contests: Legitimate companies rarely ask for payment or personal information to enter a contest. If a giveaway seems too good to be true, it probably is.

The FTC also recommends enabling two-factor authentication on social media accounts, limiting the amount of personal information shared publicly, and regularly reviewing privacy settings to reduce the risk of being targeted.

What Platforms and Regulators Are Doing to Combat the Problem

In response to the growing threat of social media scams, Meta and other platforms have introduced new tools to detect and remove fraudulent content. For example, Meta has expanded its use of artificial intelligence to identify and block fake accounts, and it has partnered with organizations like the Better Business Bureau to educate users about common scams. Yet, critics argue that these measures have not kept pace with the sophistication of fraudsters.

The FTC has also stepped up its efforts to hold platforms accountable. In 2025, the agency filed several lawsuits against companies accused of facilitating fraudulent activity, including cases involving fake investment schemes and deceptive advertising. The FTC’s report emphasizes the need for stronger collaboration between regulators, law enforcement, and social media companies to curb the spread of scams.

“Consumers need to be vigilant, but platforms also have a responsibility to protect their users,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, in a statement accompanying the report. “We’re calling on social media companies to do more to prevent scams from spreading on their platforms, and we’re committed to using all the tools at our disposal to hold bad actors accountable.”

What Consumers Can Do to Protect Themselves

The FTC’s report includes several practical steps consumers can take to reduce their risk of falling victim to a social media scam:

• Gradual Down: Scammers often create a sense of urgency to pressure victims into making quick decisions. Take your time to research any offer or request before acting.
• Verify Identities: If someone contacts you unexpectedly—even if they claim to be a friend or family member—verify their identity through another channel, such as a phone call or in-person meeting.
• Use Secure Payment Methods: Avoid sending money through wire transfers, gift cards, or cryptocurrency, as these methods are difficult to trace and recover. Use credit cards or payment services with fraud protection whenever possible.
• Report Suspicious Activity: If you encounter a scam on social media, report it to the platform and to the FTC at ReportFraud.ftc.gov. Reporting helps authorities track trends and take action against fraudsters.
• Educate Yourself: Stay informed about the latest scam tactics by following updates from the FTC, the Consumer Financial Protection Bureau (CFPB), and other trusted sources.

Key Takeaways

• Social media scams cost consumers $2.1 billion in 2025, an eightfold increase since 2020, according to the FTC.
• Nearly 30% of all fraud victims who reported losses in 2025 said the scam started on social media.
• Meta-owned platforms (Facebook, Instagram, WhatsApp) were the most commonly cited in fraud reports.
• Investment scams were the leading category, accounting for $1.1 billion in losses.
• Younger adults (18–34) were more likely to report losses from social media scams than older age groups.
• Consumers can reduce their risk by verifying identities, using secure payment methods, and reporting suspicious activity.

The Road Ahead

The FTC’s report serves as a stark reminder of the evolving threat posed by social media scams. As fraudsters continue to refine their tactics, consumers, platforms, and regulators must work together to stay one step ahead. The agency has pledged to release updated data on social media fraud trends later this year, with a focus on emerging threats like deepfake scams and AI-generated impersonations.

For now, the best defense remains vigilance. As the FTC’s report puts it: “If something seems too good to be true, it probably is.”

Have you or someone you know been targeted by a social media scam? Share your experience in the comments below, and help others stay informed.