The Federal Trade Commission reports that American citizens have lost at least $2.7 billion to social media scams since 2021. In fact, the real number may be much higher, since many victims do not report the incidents to authorities.
A recent study reveals that only 4.8% of fraud victims filed complaints with either the Better Business Bureau or a government agency.
“Reported losses from social media scams during the same period reached a staggering $2.7 billion, far higher than any other scam,” said Emma Fletcher, senior data researcher at the FTC.
“And because the vast majority of scams go unreported, this number reflects only a small part of the problem“.
See also: What are the most common Facebook scams?
In social media scams, scammers often advertise fake products and try to trick users into buying them. These scammers then steal the money without shipping the product to the customer.
Alternatively, they may lure people with supposed investment opportunities, often related to crypto. Another tactic involves sending unexpected friend. Scammers approach victims via messages and develop a relationship of trust and often a romantic one, only to later ask for money.
The Federal Trade Commission (FTC) has advised US users to be vigilant and protect themselves from such scams. The commission suggests that users limit their social media posts and interactions and contact them directly by phone if someone, even a supposed friend or relative, asks for money via social media.
Users should also be wary when someone on social media tries to befriend them or develop a romantic relationship out of nowhere. In such cases, it is recommended to be cautious, to be informed about so-called romance scams, which often start through social media and dating apps, and to avoid sending money to people we have not met in person.
See also: Which scams were most popular in the first months of 2023?
Additionally, consumers should research companies thoroughly before making purchases. When we see an advertisement on social media, it is best to ignore it and look for the company’s official website online. Also, searching online usinga company name and keywords such as “scam” or “complaint” can provide valuable information.
“Reports during the first half of the year show that the most frequently reported social media scams are related to online shopping, with 44% of reports indicating fraud related to buying or selling products online,” the FTC said.
“Most of these reports come from people who never received the items they ordered after responding to an ad on Facebook or Instagram.“.
The FTC's new warning follows a previous report about an explosion in social media scams during 2021. According to that report, Americans had lost over $770 million in one year.
The growing use of social media offers criminals an unlimited number of potential victims. Despite platforms to step up security, fraudsters still find ways to bypass these measures.
The scams, according to the FTC, range from misleading advertising to personal scams that take advantage of people's kindness.
See also: Pig butchering crypto scam: Hackers stole $1 million in three months
The Extensive Damage
The financial losses from these scams are described as “shocking,” with consumers losing millions of dollars. But the financial loss is only part of the problem. When we consider romance scams, there is also a huge emotional/psychological cost. Victims of social media scams have a hard time regaining their trust in people.
Source: www.bleepingcomputer.com
