A new report by the US trade agency states that over 95,000 individuals lost millions to fraud on social media platforms.
Social media has become an attractive platform among scammers, which is terrible news to avid social media users. A new report published by the Federal Trade Commission (FTC) called social media a “gold mine for scammers. The publication reminds everyone of a guiding principle we should live by, that is, “Trust no one online.”
Type of social media scams
FTC said that social media scams have grown alarming during the last five years. Social media-initiated scams account for about $770 million in losses among consumers in 2021. Such data recorded a shocking eighteen fold increase from 2017 with $42 million in reported losses. The agency attended to more than 95,000 reports of fraud initiated on social media last year. Cons come in various categories, such as investment scams, online shopping scams, and romance scams.
Investment scams
Among those reported, investment scams (37%) and romance scams (24%) were the most money-making for scammers. Any fraud is in itself an evil deed, but those who use romance to lure people are truly heartless.
According to FTC, in investment scams, people reach out to users on social media with bogus investment opportunities. These scammers promise significant returns, sometimes impersonating the victim’s relatives or friends to convince them to send money. In addition, scams involving cryptocurrency have surged, which sadly is no surprise due to growing popularity.
Romance scams
Likewise, romance scams are fraud at record highs in 2021, including precisely what their name suggests.
More than a third of people who reported losing money to a romance scam said it began on Instagram or Facebook. These frauds often start with a seemingly innocent friend request from a stranger and are followed by sweet conversation. Then, inevitably a request to send them money, the FTC said.
Online shopping scams
According to the agency’s report, online shopping was another significant type of scam. While not as lucrative as the other scam categories, it’s the fraud that people most reported to the FTC, consisting of 45% of loss reports. Victims of these scams bought items on social media but never received their purchases. Facebook and Instagram were the most common platforms used by scammers.
The FTC’s report shows that social media was indeed a gold mine for scammers in 2021, as compared with other forms of swindling.
Why do scammers like social media?
The agency said it is an inexpensive way to reach billions of people worldwide. It is also easy to fake their identity and lie about their intentions. FTC also noted that these scammers could even hack into the profiles of a person’s social media connections and try to get money out of them that way. Also, we share too much about ourselves online, which allows them to familiarize users’ personal information to better plan their scheme.
“Scammers trying to get your money are also finding new ways to reach people. They will use whatever they know about a person to target their pitch,” FTC’s Rosario Méndez said in a blog post.
Aside from being aware of the content and people you interact with on social media, you can implement some other good practices. FTC said you should limit those who can see your posts and information on social media. Opting out of targeting advertising and calling or verifying from friends who ask you for money are also good practices to adopt.
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