Social Media Becomes Top Channel for Scams, Causing $2.1 Billion in Losses: FTC Report

The latest figures from the U.S. Federal Trade Commission (FTC) paint a stark picture of the evolving landscape of financial fraud, with social media emerging as the primary battleground for scammers. In 2025, a staggering one-third of all reported financial losses due to scams originated on platforms like Facebook, WhatsApp, and Instagram. The total reported damage ballooned to $2.1 billion, an eightfold increase since 2020, underscoring the escalating threat.

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Social networks have become by far the most profitable channel for online scammers. They have surpassed all other methods of contacting victims, such as email, SMS messages, or direct calls.

These platforms offer scammers an unparalleled advantage: access to billions of users at minimal cost. They mimic legitimate businesses, using sophisticated targeting based on age, interests, and purchasing habits. By infiltrating user accounts or analyzing public posts, fraudsters craft highly persuasive deceptions. They leverage personal information from profiles to build emotional connections, then exploit this trust to solicit money, either through fabricated emergencies or by luring victims into bogus investment schemes.

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Scammers use the same tools as legitimate businesses: they target users based on age, interests, or purchasing habits. They often also hack into user accounts or analyze posts to create the most convincing scams.

Facebook, in particular, stands out as the platform where users reported the most significant financial losses. While WhatsApp and Instagram follow, the scale of fraud on Facebook alone dwarfs losses from traditional channels like SMS or email. This trend is concerning for Slovenia, as it highlights the need for increased vigilance among our citizens who increasingly rely on these platforms for communication and information. The FTC's data indicates that nearly all age groups, except for those over 80, lost the most money through social media scams. While phone scams still dominate for the very elderly, social media is rapidly becoming the second most common method of fraud for them as well.

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Scammers exploit information from user profiles, establish an emotional relationship with the victim, and then demand money, either under the pretext of an emergency or by gradually redirecting the victim to fake investment projects.

The primary types of scams observed are investment fraud, which accounts for the largest financial damage ($1.1 billion), followed by shopping scams (the most frequently reported) and romance scams. Investment scams often begin with alluring ads promising quick riches through easy investing. Shopping scams involve fake online stores or counterfeit brands offering deep discounts. Romance scams, which frequently originate on social media, exploit personal information to build trust before demanding money. This pervasive digital threat demands a coordinated response, emphasizing digital literacy and robust security measures for all users.

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Investment scams cause the most financial damage. People lost $1.1 billion due to fake investment opportunities.