Current:Home > InvestAmericans reported $2.7 billion in losses from scams on social media, FTC says-DB Wealth Institute B2 Expert Reviews
Americans reported $2.7 billion in losses from scams on social media, FTC says
View Date:2024-12-23 14:25:29
Online fraudsters have taken billions of dollars from Americans in recent years and they are using social media to do it.
Since 2021, Americans lost $2.7 billion in scams from social media, the Federal Trade Commission said in a scam report published Friday. And that figure is only a fraction of the actual harm, as most cases of fraud go unreported, the agency noted.
People continue to fall victim to social media scams in part because criminals have a trove of techniques they use for finding their prey, Emma Fletcher, a senior data researcher for the FTC, wrote in an analysis of the scam report.
"They can easily manufacture a fake persona, or hack into your profile, pretend to be you, and con your friends," Fletcher said. "They can learn to tailor their approach from what you share on social media."
Most money is lost to scams on social media
The FTC analysis draws on nearly 258,000 social media fraud instances reported directly to the federal agency as well as reports provided by Sentinel Data. One in four people who reported losing money to fraud since 2021 pointed to social media as the origin of the scam. Americans lose money to fraud on social media platforms more than any other method of communication, including websites, phone calls, e-mails, online advertising or mail, the FTC said.
Most cases of fraud on social media this year have stemmed from a user trying to buy clothes, electronics or other goods that had been marketed on Facebook, Instagram or Snapchat, the FTC report reveals. In such instances, a user would order the product, but the item would reportedly never be delivered.
Fletcher said more than half of money reported lost due to social media went to investment scammers. These scammers promote themselves as successful investors but are often just trying to trick people into investing in bogus apps or websites by promising huge returns, she said.
The FTC report said Americans also often fall for so-called "romance scams" via social media, in which case a stranger sends someone a friend request and soon starts asking for money.
More skilled at deceiving victims
Cybercriminals have become more creative and skilled at tricking victims through text messages, by phone and online. Cybersecurity experts say the first defense against scams is looking for telltale signs such as someone creating a sense of urgency while soliciting you for money.
Here are tips provided by the FTC on steering clear of scams on social media:
- Social media users can reduce their chances of getting scammed by limiting the number of people online who can view their posts. All platforms collect information about you from your activities on social media, but visit your privacy settings to set restrictions.
- If you get a message from a friend requesting money or letting you know about a financial opportunity, it may be that their account was hacked by a scammer. Call them up to verify the message, particularly if they ask you to make a payment by cryptocurrency, gift card, or wire transfer.
- Beware if someone reaches out to you on social media to start a friendship or romance. Read here about romance scams. Never send money to anyone you haven't met in person.
- Research any company found on social media before making a purchase. Search its name plus "scam" or "complaint."
You can learn more about how to spot scams, as well as how to recover money if you've been scammed, at ftc.gov/scams. To report a scam, contact the FTC at ReportFraud.ftc.gov.
- In:
- Federal Trade Commission
- Social Media
- Fraud
Khristopher J. Brooks is a reporter for CBS MoneyWatch covering business, consumer and financial stories that range from economic inequality and housing issues to bankruptcies and the business of sports.
TwitterveryGood! (1)
Related
- Channing Tatum Drops Shirtless Selfie After Zoë Kravitz Breakup
- A Sprawling Superfund Site Has Contaminated Lavaca Bay. Now, It’s Threatened by Climate Change
- Allen Weisselberg sentenced to 5 months for his role in Trump Organization tax fraud
- Groups Urge the EPA to Do Its Duty: Regulate Factory Farm Emissions
- Horoscopes Today, November 9, 2024
- With Sen. Kyrsten Sinema’s Snubbing of the Democrats’ Reconciliation Plans, Environmental Advocates Ask, ‘Which Side Are You On?’
- Rebel Wilson Shares Glimpse Into Motherhood With “Most Adorable” Daughter Royce
- Farmworkers brace for more time in the shadows after latest effort fails in Congress
- Man is 'not dead anymore' after long battle with IRS, which mistakenly labeled him deceased
- 9 wounded in mass shooting in Cleveland, police say
Ranking
- Mechanic dies after being 'trapped' under Amazon delivery van at Florida-based center
- After holiday week marred by mass shootings, Congress faces demands to rekindle efforts to reduce gun violence
- Southwest plans on near-normal operations Friday after widespread cancellations
- The Rest of the Story, 2022
- Shel Talmy, produced hits by The Who, The Kinks and other 1960s British bands, dead at 87
- Indiana Bill Would Make it Harder to Close Coal Plants
- Buying an electric car? You can get a $7,500 tax credit, but it won't be easy
- Warming Trends: Mercury in Narwhal Tusks, Major League Baseball Heats Up and Earth Day Goes Online: Avatars Welcome
Recommendation
-
Man waives jury trial in killing of Georgia nursing student
-
From East to West On Election Eve, Climate Change—and its Encroaching Peril—Are On Americans’ Minds
-
Nature is Critical to Slowing Climate Change, But It Can Only Do So If We Help It First
-
How Maksim and Val Chmerkovskiy’s Fatherhood Dreams Came True
-
Duke basketball vs Kentucky live updates: Highlights, scores, updates from Champions Classic
-
Madonna says she's on the road to recovery and will reschedule tour after sudden stint in ICU
-
Vanderpump Rules' Tom Sandoval Defends His T-Shirt Sex Comment Aimed at Ex Ariana Madix
-
Sen. Schumer asks FDA to look into PRIME, Logan Paul's high-caffeine energy drink