Bogus cryptocurrency investment schemes over social media platforms were the top financial fraud activity last year, the US Federal Trade Commission (FTC) reported. Social media targets scams totalled $770m (£573m), up 1,733% from $42m reported in 2017.
Of the investment scams where social media was the method of contact, cryptocurrency was the method of payment in 64% of reported frauds, the FTC added. A direct payment app or service was used for 13% of fraudulent investment payments and traditional bank transfers made up 9% of scammed funds.
Social media represents a “low-cost way to reach billions of people from anywhere in the world,” the FTC said in its Consumer Protection Data Spotlight. “It’s easy to manufacture a fake persona, or scammers can hack into an existing profile to get ‘friends’ to con. There’s the ability to fine-tune their approach by studying the personal details people share on social media.”
Top contact methods for financial fraud
- Social media – $770m (26%)
- Website or app – $554m (19%)
- Telephone – $546m (18%)
Of the total of $770m in more than 95,000 separate schemes reported in 2021, 54% listed social media as the initial contact method. The leading social media platforms for fraudulent investment scams are Meta Platforms units Instagram at 36%, Facebook at 28% and WhatsApp at 9%. Additionally, 7% of social media investment…
