A recent Data Spotlight published by the Federal Trade Commission highlights the growing role social media plays in consumer fraud schemes and the significant financial losses tied to scams originating on these platforms.
According to the FTC’s Consumer Sentinel Network data, nearly 30% of consumers who reported losing money to scams in 2025 said the fraud began on social media. Reported losses tied to those scams reached approximately $2.1 billion, exceeding losses connected to any other form of contact. The FTC noted that reported losses associated with social media scams are now roughly eight times higher than they were in 2020. Because many fraud incidents go unreported, the actual losses are likely substantially higher.
The FTC’s recent Data Spotlight explains that while social media platforms allow consumers to connect and shop online, they also provide scammers with inexpensive access to large audiences. Fraudsters may hack legitimate accounts, create fake profiles, or use publicly available personal information to target potential victims. Social media advertising tools can also allow scammers to target users based on age, interests, and shopping behavior.Â
Shopping scams were identified as the most commonly reported social media scam in 2025.
More than 40% of consumers who reported losing money through social media scams said the fraud began after purchasing a product advertised online. Reported items included clothing, cosmetics, automotive parts, and pets.Â
According to the FTC, many consumers said advertisements directed them to unfamiliar websites or to sites impersonating established brands while promoting steep discounts. In many cases, purchased products never arrived. When products were delivered, consumers frequently reported receiving counterfeit goods or items that differed significantly from what had been advertised. Reports also indicated that many products were shipped from China, where expensive return shipping costs made refunds or exchanges difficult.Â
Although shopping scams were the most frequently reported, investment scams generated the largest reported financial losses.
Consumers reported approximately $1.1 billion in losses tied to investment scams that originated on social media, accounting for more than half of all reported social media scam losses.Â
The FTC stated that these schemes often began with advertisements or posts promoting investment education programs. Other scams involved individuals posing as investment advisors or creating group chats filled with fake testimonials from supposed successful investors. Victims were then directed to fraudulent investment platforms designed to appear legitimate.Â
Reports showed that users could initially view fabricated profits and, in some cases, withdraw small amounts of money to build trust in the platform before being encouraged to invest larger sums. Victims later discovered that no legitimate investment existed. Some consumers also reported secondary losses after being contacted by individuals claiming they could recover stolen funds in exchange for additional fees.Â
Romance scams also remained prevalent on social media platforms in 2025. Nearly 60% of consumers who reported financial losses tied to romance scams said the scheme originated on social media. According to the FTC, scammers frequently used information from users’ profiles to personalize conversations and build trust before requesting money for fabricated emergencies.Â
Some romance scammers also introduced victims to fraudulent investment opportunities or threatened victims with the release of private photos unless payments were made.Â
Social media platforms were also frequently connected to job and housing scams. Approximately one-third of consumers who reported losses related to job or business opportunity scams said the fraud began on social media. Additionally, a recent analysis of fake rental listing reports found that about half were posted on Facebook.
FTC data indicated that social media scams affected consumers across nearly every age group.
In 2025, social media represented the costliest fraud contact method based on aggregate reported losses for consumers under the age of 80. For individuals aged 80 and older, phone calls ranked first, followed by social media scams.Â
Among consumers who reported losing money, social media was also the most frequently reported contact method for several age groups, including individuals in their 60s and 70s.Â
The FTC’s Data Spotlight further noted that reported losses were highest on Facebook compared to any other social media platform in 2025. WhatsApp and Instagram ranked second and third, respectively. Consumers reported losing more money to scams initiated on Facebook alone than to scams that originated through either text messages or email.Â
Author:Â Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clients’ criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jennifer’s guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance