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Srinivasa Reddy Kandi: Social Media Scams Cost Americans $2.1 Billion in 2025, Says FTC

April, 28, 2026-03:57

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Social Media Scams Cost Americans $2.1 Billion in 2025, Says FTC:

Americans lost an estimated $2.1 billion to scams that originated on social media platforms in 2025, according to a new report from the Federal Trade Commission. The agency noted a dramatic surge in these crimes, with losses increasing eightfold over recent years. Social media has now become the leading channel scammers use to target victims, surpassing traditional methods like email and text.

Nearly 30% of individuals who reported financial losses said their scams began on social platforms. Among these, Facebook accounted for the highest number of cases, followed by WhatsApp and Instagram. Notably, losses linked to Facebook alone exceeded those from scams conducted via text messages or email.

The FTC found that social media scams come in various forms, with online shopping fraud being the most common. Over 40% of victims reported purchasing items advertised on social platforms—ranging from clothing and beauty products to car parts and even pets—only to be misled. These ads often redirected users to unfamiliar or fake websites, sometimes impersonating well-known brands with heavily discounted offers.

Investment scams were another major contributor to losses, accounting for $1.1 billion. These schemes typically begin with ads or posts promising financial education or high returns. Scammers may pose as advisors or create group chats filled with fake success stories to build credibility before directing victims to fraudulent investment platforms.

Romance scams also remained prevalent. Nearly 60% of victims in this category said the interaction started on social media. In many cases, scammers build trust by tailoring conversations to a victim’s profile, then fabricate emergencies or introduce investment opportunities to extract money.
To avoid falling victim, the FTC recommends limiting the visibility of personal information online, avoiding financial advice from strangers, and thoroughly researching products or companies before making purchases. Searching for reviews or complaints alongside a company’s name can also help identify potential scams.

Author: Kandi Srinivasa Reddy, Srinivasa Reddy Kandi, #KandiSrinivasaReddy, #SrinivasaReddyKandi