More than 95,000 U.S. consumers lost about $770 million to social media scams, according to the FTC.
The report is based on tens of thousands of reports received by the U.S. Federal Trade Commission (FTC) in 2021. Fraud on social media accounts for a quarter of all fraud losses reported in 2021.
“More than one in four people who reported losing money to fraud in 2021 said it started on social media with an ad, a post, or a message. In fact, the data suggest that social media was far more profitable to scammers in 2021 than any other method of reaching people,” the FTC said.
Some of the most profitable scams on social media include those promoting bogus investments and romance scams.
According to reports, one of the largest numbers of scams associated with social media is online shopping scams.
The FTC offered tips on how to avoid scams on social media, including limiting those who can see their posts and information on social media, checking whether they can opt-out of targeted counselling, and checking messages from friends who are asking for money.
Others involve reading information about romance scams to avoid falling victims and checking information about a buyer before buying their products.