We all have our favorite corners of social media. They help us stay connected with family and friends and keep up with trends. They’ve also become a major part of daily life – and big business.
Unfortunately, that includes big business for scammers.
According to the Federal Trade Commission (FTC), social media scams cost Americans $2.1 billion in losses last year. In fact, 30 percent of victims who reported losing money say the scam started on social media platforms.
“As much as we love social media, it’s a leading gateway for scammers who want to steal our money and our personal information,” said Kimberly Reece, customer advocacy manager for Enterprise Fraud Management at Regions. “They can hack accounts or use what we share online against us.”
What Are the Most Common Social Media Scams?
The FTC identifies three major types of scams that frequently originate on platforms like Facebook, Instagram, TikTok and X:
1. Investment Scams (Most Costly)
Investment scams are the No. 1 source of financial losses on social media.
These scams often appear as:
- Ads promoting “guaranteed” or “get-rich-quick” investments
- Cryptocurrency success stories
- Messages from “friends” claiming they made large profits
In many cases, those “friends” are actually spoofed or hacked accounts designed to build trust.
Key stat: About half of all social media scam losses — $1.1 billion — come from investment scams.
2. Online Shopping Scams
Online shopping scams are especially common during holidays and sales events.
They typically involve:
- Deep discounts on brand-name clothing or electronics
- Ads for hard-to-find or trending items
- Links to unfamiliar or fake retail websites
Victims may:
- Receive cheap or counterfeit products
- Receive nothing at all
- Have their credit card or payment information stolen
Red flag: If the price seems too good to be true, it likely is.
3. Romance Scams
Romance scams continue to rise, often starting with a simple message or friend request.
Scammers:
- Build emotional connections over time
- Create believable personal stories
- Eventually ask for money, gift cards or financial help
Many victims say the interaction felt completely real at first, making these scams especially damaging.
How to Spot a Social Media Scam
“No matter how great the deal or how trustworthy the person seems, proceed with caution,” said Jeff Taylor, head of Commercial Fraud Forensics at Regions. “Sometimes searching a company’s name along with the word ‘scam’ can quickly reveal what you need to know.”
Common Warning Signs:
- Urgent requests for money or investment
- Requests to move conversations to another platform
- Unfamiliar websites or payment methods
- Messages from friends that seem unusual or out of character
FTC Safety Tips to Avoid Social Media Fraud
The FTC offers straightforward ways to protect yourself from scams:
Lock Down Your Privacy Settings
Limit what strangers can see on your profile. Less public information means fewer opportunities for scammers to target you.
Avoid Investment Advice from Social Media
Never trust financial advice from someone you’ve only met online – especially involving cryptocurrency or rapid returns.
Research Before You Buy
Search the company name along with terms like:
- “scam”
- “complaint”
- “review”
This quick step can help you avoid fraudulent sellers.
Bottom Line: Stay Alert on Social Media
“There are great deals on social media – as well as meaningful connections,” Reece said. “But before jumping in, take a step back. Is the company legitimate? Do I really know that person? If so, contact them directly to confirm everything first.”
Quick Answer
What are social media scams?
Fraud schemes that start on platforms like Facebook, Instagram, X or TikTok and trick users into giving away money or personal information.
What is the most common scam?
Investment scams – especially cryptocurrency-related – account for the largest losses.
How can you stay safe?
Use privacy settings, avoid financial advice from strangers, and research companies before making purchases.
Additional Resources from Regions.com
Related Articles from Doing More Today
The information presented is general in nature and should not be considered, legal, accounting or tax advice. Regions reminds its customers that they should be vigilant about fraud and security and that they are responsible for taking action to protect their computer systems. Fraud prevention requires a continuous review of your policies and practices, as the threat evolves daily. There is no guarantee that all fraudulent transactions will be prevented or that related financial losses will not occur. Visit regions.com/STOPFRAUD or speak with your Banker for further information on how you can help prevent fraud.