With social media providing scammers with more ways than ever to take advantage of unsuspecting users, especially through financial scams, social media scams are as commonplace as ever with millions of people falling victim to them every year.
To help combat this problem, XTB.com have identified five of the most common social media scams at this moment in time and have provided some tips on how to identify and avoid these scams:
Investment and Cryptocurrency Scams: One of the most popular methods that scammers are using to scam users on social media is fake investment opportunities. Whether it be Forex, cryptocurrency or stocks, scammers will contact you with promises of high returns and zero risk through claims of insider knowledge of the market or other connections.
How to avoid this scam:
- Only invest through trusted entities that are regulated by the Financial Conduct Authority or another top tier regulator.
- Do not share personal information with anyone until you have verified their legitimacy.
- Do not send money to anyone who has reached out over social media direct messages with “too good to be true” investment opportunities.
Social Media Account Takeover Fraud: This scam involves the scammer gaining access to your social media profile and using it to post fake investment opportunities, share links to phishing opportunities and also gain access to your friends and family member accounts.
How to avoid this scam:
- Beware if a friend is…
