FTC Warns ‘Skyrocketing’ Number of Scammers Find Victims of All Ages on Social Media

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FTC Data Security Social Media Scammer Report Overview:

• Who: The Federal Trade Commission (FTC) has released its latest Data Spotlight and revealed that many scammers find their victims on social media.
• Why: In 2021, more than 95,000 people reported about $770 million in losses to fraud initiated on social media platforms, the FTC says.
• Where: The Data Spotlight was released in the United States.

The Federal Trade Commission (FTC) is warning social media users to be careful online after its latest report revealed that the number of consumers being scammed by people they’ve encountered on social media is booming.

According to the latest FTC Data Spotlight released Jan. 27, the commission has noticed the “disturbing trend” among consumers who report scams that a “skyrocketing percentage of them” crossed paths with the perpetrator on social media.

The FTC said that in 2021, more than 95,000 people reported about $770 million in losses to fraud initiated on social media platforms.

“Those losses accounted for about 25% of all reported fraud losses that year,” the FTC said. 

It was an 18-fold increase from the number of people scammed through social media in 2017, the commission said. 

People Ages 18-39 More Than Twice As Likely As Older Adults To Report Losing Money To Scams

The new report also had some surprises for consumers who might typically think it is only older people who get scammed on social media. 

Instead, reports of people being ripped off by online perpetrators are up for every age group.  

“But, in 2021, people between 18 to 39 were more than twice as likely as older adults to report losing money to scams that started on social media,” the report found.

It said people were often being tricked by deceptive ads. Of the reports the commission received about fraud losses that started with a social media contact, 45% came from people who said they were ripped off when buying something marketed on social media. 

About 70% of those reports involved merchandise that consumers ordered but never received. 

“Some people reported ads on social media that impersonated the look of established online retailers,” the commission said. 

Other scams accounting for big losses include investment scams with cryptocurrency involved in about 64% of the investment scams where the payment method was specified. 

Meanwhile, the FTC is sending out checks in several refunds to customers impacted by fraud. For the latest FTC refunds, click here. 

Have you been contacted by someone trying to scam you on social media? Let us know your experience in the comments!

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