In its latest Consumer Protection Data Spotlight, the Federal Trade Commission (FTC) says 2021 was a banner year for social media scammers, with $770 million in social-media–originated fraud losses reported to the agency. The more than 95,000 people who reported losing money to social-media–related fraud represent more than 25% of all fraud loss last year, according to the FTC.
Investment and romance scams cost consumers more money, but the largest number of reports came from people who said they were scammed when trying to buy something online.
These losses represent a stunning 1800% increase over similar type losses reported in 2017. Although there were increases in every age group, people 18 to 39 were 2.4 times as likely as older adults to report losing money to social media scams in 2021.
Key Takeaways
- FTC says consumers reported $770 million in social media scam fraud in 2021.
- Last year’s losses represent an 1,800% increase over the past four years.
- According to the FTC, just 4.8% of fraud victims report losses to a government agency or the BBB.
- More money was lost to social media investment scams, but the greatest number of reports were about undelivered goods.
- People 18 to 39 were more than twice as likely as older adults to report these type of losses.
- Protecting yourself from social media scams requires vigilance. If something seems too good to be true. It probably is.
Stunning Statistics
The 1,800% rise in social media fraud losses…
