You see an advertisement on Facebook offering a designer handbag at an unbelievable discount, or perhaps someone you’ve never met sends you a friendly message about an investment opportunity. Everything looks legitimate, from the professional photographs to the enthusiastic customer reviews.
But behind some of those posts are criminals who have turned social media into a multibillion-dollar fraud operation.
According to an April 2026 Federal Trade Commission report, Americans reported losing $2.1 billion to scams that started on social media in 2025. That’s approximately eight times the $261 million reported in 2020, and the actual financial damage could be substantially higher because many scams go unreported.
Nearly 30% of consumers who reported losing money to fraud and identified how the scam began said it started on social media.
What’s particularly concerning is that these schemes aren’t limited to people unfamiliar with technology. Criminals are exploiting trusted platforms, convincing advertisements, and personal relationships to steal money from Americans of nearly every age.
Here’s where the money went and what consumers should watch for.
Investment Scams Accounted for More Than Half the Losses
The largest financial losses from social media scams came from fraudulent investment opportunities that promised unusually high returns with little risk. According to the FTC, Americans reported losing approximately $1.1 billion to investment scams that originated on social media in 2025, accounting for more than half of the total reported losses. Criminals frequently advertised investment education programs, impersonated financial experts, or invited potential victims into messaging groups filled with supposedly successful investors. Victims were sometimes directed to professional-looking websites displaying fabricated investment balances and profits, encouraging them to deposit increasingly large amounts of money. The FTC warns that guaranteed returns, pressure to invest quickly, and investment advice from strangers are serious warning signs.
Online Shopping Scams Were the Most Frequently Reported
While investment fraud caused the greatest financial damage, online shopping scams generated the largest share of reports involving social media scams. The FTC found that more than 40% of people who reported losing money to social media fraud said the scam began when they ordered something advertised on a platform. These advertisements promoted everything from clothing and cosmetics to vehicle parts and puppies, sometimes using images stolen from legitimate businesses. Consumers frequently reported receiving nothing after paying, while others received counterfeit products or merchandise that looked nothing like the advertisements. Before purchasing from an unfamiliar retailer, search for independent reviews, verify the company’s website, and consider using a credit card that provides dispute protections.
Romance Scams Took Another $298 Million
Romance scams remain particularly devastating because criminals often manipulate victims emotionally before asking for money. The FTC’s 2025 findings show that Americans reported losing approximately $298 million to romance scams originating on social media. Nearly 60% of people who reported losing money to romance fraud said their experience began on a social media platform. Scammers frequently develop relationships over weeks or months before inventing medical emergencies, travel problems, or investment opportunities that supposedly require financial assistance. Someone who refuses video conversations, repeatedly avoids meeting in person, or requests cryptocurrency or wire transfers should raise immediate concerns, regardless of how convincing the relationship feels.
Facebook Accounted for the Largest Platform-Specific Losses
Not all social media platforms appeared equally in the FTC’s fraud reports, although criminals operate across numerous services. Facebook accounted for approximately $794 million in reported losses during 2025, making it the platform associated with the largest dollar amount. WhatsApp followed with approximately $425 million, while Instagram accounted for another $234 million in reported losses. The FTC also identified losses involving Telegram, TikTok, LinkedIn, X, and other platforms, demonstrating that fraud isn’t confined to one company’s users. These figures describe where victims reported that scams originated, not proof that the platforms themselves committed fraud or that any particular platform has the highest individual risk.
Fake Jobs and Rental Listings Created Additional Financial Traps
Social media scammers aren’t only targeting people interested in shopping, investing, or romantic relationships. Some criminals advertise attractive remote jobs that require applicants to pay upfront fees, purchase equipment through suspicious websites, or provide sensitive financial information. The FTC found that approximately one-third of people who reported losing money to job or business opportunity scams in 2025 said the schemes began on social media. Fraudulent rental advertisements are another concern, with the agency reporting that approximately half of the fake rental home listings examined in a recent analysis appeared on Facebook. Never send deposits for a property you haven’t independently verified, and be suspicious of employers requesting payment before allowing you to begin legitimate work.
Scammers Are Using Personal Information to Build Trust
One reason social media scams can be so convincing is that criminals have access to information people voluntarily share online. Public profiles may reveal someone’s hometown, employer, relatives, hobbies, recent purchases, or major life events, allowing scammers to create personalized messages. Fraudsters can also purchase advertisements using audience-targeting tools similar to those available to legitimate businesses. Imagine receiving an investment advertisement shortly after posting about retirement planning or a message from someone pretending to share your favorite hobby. Reviewing privacy settings, limiting publicly visible personal information, and independently verifying unexpected contacts can reduce opportunities for criminals to exploit those details.
What to Do if You’ve Already Sent Money
Discovering that you’ve fallen for a scam can be frightening, particularly when substantial savings or personal information are involved. The FTC recommends reporting suspected fraud through ReportFraud.ftc.gov and contacting the financial institution or payment provider used in the transaction as quickly as possible. Depending on the payment method and circumstances, your bank, credit card company, or payment service may be able to investigate or help recover funds, although reimbursement isn’t guaranteed. Consumers who shared sensitive identifying information should also visit IdentityTheft.gov for guidance on protecting their accounts and responding to potential identity theft. Be especially cautious of anyone promising to recover stolen cryptocurrency or investment funds for an upfront fee, because these offers can be another layer of fraud.
The Most Expensive Click Could Be the One You Trust
The FTC’s $2.1 billion figure illustrates how costly social media scams have become, but it represents only losses reported to the agency rather than the full extent of the problem. Investment schemes, fraudulent shopping advertisements, romance scams, and fake employment opportunities all exploit the convenience and familiarity of platforms millions of Americans use daily. Before sending money, entering payment information, or accepting investment advice, take time to verify the person or business through independent sources. Legitimate opportunities generally withstand reasonable questions and careful research, while scammers often rely on urgency, secrecy, or emotional pressure to prevent scrutiny. Protecting your money doesn’t require abandoning social media, but it does require remembering that a convincing advertisement, friendly message, or familiar logo isn’t proof of legitimacy.
Have you ever encountered a suspicious advertisement, fake shopping website, or investment offer on social media? What warning signs helped you recognize the scam, or what do you wish you’d known sooner? Share your experiences in the comments!
