By Jackson Richman

Americans are losing billions of dollars to scams that begin on social media, according to new data from the Federal Trade Commission released on April 27.

In 2025, nearly 30 percent of people who reported financial losses from scams said the fraud started on a social platform. Total reported losses reached a staggering $2.1 billion. That marks an eightfold increase since 2020—making social media the most lucrative contact method for scammers, far surpassing email, text, or other channels.

The scale of the problem reflects how social media makes it easy for criminals to find and target victims. Scammers can hack accounts, study users’ posts to personalize their approach, or even purchase ads—using the same sophisticated targeting tools as legitimate businesses to reach people based on age, interests, and shopping behavior.

Among platforms, Facebook accounted for the highest reported losses in 2025. WhatsApp and Instagram distantly followed. In fact, losses linked to Facebook alone exceeded the total reported losses from scams delivered via text or email.

The data also show that nearly every age group—except those 80 and older—lost more money to scams originating on social media than through any other method. For adults over 80, social media ranked second to phone calls.

Scams on social media take several common forms, including investment scams, which cause the greatest financial damage.

In 2025, losses via investment scams reached $1.1 billion—more than half of all money lost to social media fraud. These schemes often begin with ads or posts promising to teach investing. Others involve scammers posing as financial advisers or creating group chats filled with fake “success stories” to build credibility.

Shopping scams were the most frequently reported. More than 40 percent of victims said they purchased items they saw advertised on social media—ranging from clothing and cosmetics to car parts and even pets. In many cases, the ads led to unfamiliar or fraudulent websites, including ones impersonating well-known brands and offering unrealistic discounts.

Romance scams are also widespread. Nearly 60 percent of reported losses from romance scams in 2025 began on social media. Scammers study profiles to craft convincing, personalized messages, build trust over time, and then fabricate emergencies requiring money. Some eventually steer victims toward fake investment opportunities.

To reduce risk, the Federal Trade Commission urges users to take a more cautious approach online. Limiting who can view your posts and personal information can make it harder for scammers to target you. Reviewing privacy settings regularly is another important step.

The agency also warns against taking investment advice from anyone you’ve only met online. Before making a purchase, consumers should research the company—searching its name along with terms like “scam” or “complaint” to uncover potential red flags.

As social media continues to grow, so does its appeal to scammers. Staying alert and skeptical is increasingly essential to avoiding costly mistakes, the Federal Trade Commission said.