A new report from the U.S. Federal Trade Commission says that over $2.1 billion was lost to social media scams.
“Nearly 30% of people who reported losing money to a scam said that it started on social media, with reported losses reaching a staggering $2.1 billion,” the report claims.
This highlights how social media has quietly become a significant entry point for scammers, with losses rising “eightfold” since 2020, more than any other method scammers use.
Not long ago, scams mostly came through texts and emails. That balance has shifted. As the FTC put it: “People reported losing far more money to scams on Facebook alone than they reported losing to text or email scams.”
Facebook accounts for the largest share of losses at $794 million, while WhatsApp and Instagram combined account for $659 million.
How These Scams Actually Work
According to the FTC, most of these scams fall into three categories: shopping, investment, and romance.
Shopping scams are the most common. More than 40% of victims said, “they ordered something they saw in a social media ad,” ranging from clothes and makeup to car parts and even pets. In many cases, users are redirected to unfamiliar websites or fake versions of trusted brands offering steep discounts. The purchase goes through, but the product never arrives.
Investment scams, however, account for the most money lost. Victims lost $1.1 billion in 2025 alone. These scams often begin with ads promising to teach people how to invest or grow their money. Scammers pose as “friendly advisers” or create WhatsApp groups filled with fake success stories. Over time, victims are convinced to move money into fake platforms.
Romance scams follow a different pattern but reach similar outcomes. Nearly 60% of people who lost money to romance scams said the interaction started on social media. Scammers study profiles, build trust, then introduce a crisis or an “investment opportunity” that requires money.
Why Social Media Became the Perfect Entry Point
The FTC points to scale and precision as the key reasons.
“Social media creates easy access to billions of people… at very little cost,” the agency said.
Scammers can now target users based on age, interests, and behaviour, using the same tools legitimate businesses rely on. In some cases, they even run paid ads to appear more credible.
How to Stay Safe
The FTC keeps its advice simple and practical. “Limit who can see your posts and contacts on social media,” the agency said, noting that scammers often rely on personal details to tailor their approach.
“Never let someone you have met only on social media direct your investment decisions.” Many of the biggest losses start with casual conversations that slowly turn into financial advice.
Before buying anything, the FTC recommends doing a quick check: search the company’s name alongside terms like “scam” or “complaint.” That extra step often reveals patterns others have already reported.
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