It’s a significant issue related to social media.
According to the Federal Trade Commission, nearly 30% of those who reported scams in 2025 indicated that the initial contact occurred through social media platforms.
The projected losses from these scams are expected to hit $2.1 billion in 2025, which is eight times more than what was recorded in 2020.
Experts believe the actual figures could be even higher, as a lot of scams go unreported.
Social media provides an ideal environment for scammers. They can easily create fake profiles, hack into accounts, and target individuals within friend networks. Scammers exploit users’ postings and can also buy ads that allow them to track personal details like age, interests, and spending habits, just like legitimate businesses do.
Surprisingly, all age groups, apart from those over 80, report higher financial losses from social media scams compared to other types of scams. For those aged 80 and above, social media scams come in second, just after phone scams.
The most frequently reported type of scam on social media involves shopping. Over 40% of victims said they were scammed after ordering products that were advertised online.
These advertisements often lead to unfamiliar websites where users either never receive their items or end up with counterfeit products.
It appears that many of these fraudulent items are shipped from China, and returning them is complicated due to high shipping costs.
Meta has estimated that around 25% of all fraudulent ads on its platform originate from China, labeling it as the main “fraudulent exporter,” according to internal documents.
While shopping scams are the most common type of social media fraud, investment scams tend to be the most financially damaging. Reportedly, more than half of the losses—approximately $1.1 billion—are linked to investment fraud.
These investment scams typically start with adverts promising knowledge about investing or invitations to join groups of so-called “successful investors.” Victims are directed to fake platforms where they’re enticed to create accounts.
This kind of scam can involve a longer-term strategy. Users might see fake profits and even be allowed to withdraw small amounts, all designed to build trust and coax more money from them. Once people lose funds, secondary scammers often appear, claiming they can recover those losses for a fee.
Romance scams can also lead to significant financial losses.
The report indicates that nearly 60% of individuals who lost money through romance scams in 2025 said the initial contact happened on social media. In these cases, scammers exploit information gleaned from user profiles to manipulate victims, weaving elaborate tales of financial distress or enticing them with fake investment opportunities.
Some scams are particularly manipulative, demanding personal photos and threatening to share them with the victim’s social media connections if they fail to comply.
Individuals seeking housing also face risks. A recent analysis found that about half of reported cases of fake rental listings appeared on Facebook.
In fact, the U.S. has one of the highest rates of fraud globally, with an estimated 100 scams occurring each month.
As previously reported, Facebook is responsible for a large share of social media scams, according to data from a fraud reporting platform.
An overwhelming 85% of scam victims identified Facebook as the platform where they were targeted, with WhatsApp and Instagram following behind. Moreover, users reported losing significantly more to scams on Facebook than through text or email in 2025.
Reports have indicated that Meta anticipates earning around $16 billion, which is about 10% of its revenue, from running these fraudulent ads.
High-risk advertisers can continue to run ads by paying higher fees, a system that, while meant to deter misconduct, has been criticized as equivalent to “pay to play.”
To protect against social media scams, the FTC recommends several precautions:
- Limit the visibility of your posts and contacts. Adjusting your privacy settings can make it harder for scammers to exploit your information.
- Don’t allow connections on social media to influence your investment choices. Instead, take the time to understand the signs of investment fraud.
- Before making a purchase, verify the company. Look up its name along with terms like “scam” or “complaint.”
For more advice on spotting, avoiding, and reporting scams or how to recover lost money, visit ftc.gov/scam. If you encounter a scam, it’s important to report it to the FTC at ReportFraud.ftc.gov.
