Social Media Scams to Be Aware Of

One in four people who have reported losing money to fraud since 2021 said the fraud started on social media. In fact, according to the Federal Trade Commission, Americans lost $2.7 billion in social media scams between 2021 and 2023.

Scammers target people of all ages, but social media scams can be more prevalent amongst younger victims. According to Pew Research Center, nearly 95% of teens own smartphones with access to some form of social media. It has become a nearly essential part of life for young individuals. But lurking underneath the glamour and curated posts, scammers target young adults, exploiting their vulnerability.

Research indicates that young adults are more likely to trust the information they encounter on social media, which makes them prime targets for scams. But the same tactics that deceive teens and young adults are often just as effective on members of older demographic groups, leading to substantial financial losses across the board.

Social media provides several advantages to scammers. They can easily create fake personas or hack into your social media profiles and take advantage of your friends. If they place ads on a social media platform, they can use the tools available to advertisers to target potential victims based on personal details like age, interests, or past purchases. 

As social media continues to evolve, so does the threat of online fraud, making vigilance crucial for users of all ages.

Here's some things to keep an eye on when using social media.

 

Common Social Media Scams

Online Shopping Scams

Social media uses algorithms to push targeted ads by tracking your activity. When you are "liking" a post, clicking to view it, or even hovering over a post, your data is being collected and analyzed to recommend future ads and social posts to you.

While this may seem harmless, scammers often advertise bogus products for sale and lure you into interacting with their posts. The algorithm will then push the ad until you purchase the fake item by either clicking directly through the social media platform or following a link to a fake website.

Social Media Influencer Scams

Brands will pay a lot of money to leverage an influencer’s following. So amassing a following and becoming a social media influencer to secure brand deals can mean big business and the ultimate dream for many.

Fraudsters try to lure aspiring influencers into purchasing likes or follows, or into supposedly lucrative brand deals. Once financial information has been provided, the fraudster can now drain their bank accounts.

Phishing via Surveys, Quizzes and Giveaways

Many companies will post a survey to get an opinion from the public. Some surveys are designed to get an opinion on a product or service, and some quizzes are designed purely for entertainment, such as "what your horoscope says about you."

However, scammers often hide behind online surveys and quizzes to obtain personal information. These links can function as social engineering tactics for scammers to obtain your personal information or they can be phishing attempts to harvest your logins and other credentials.

Impersonation Scams

Scammers sometimes impersonate a celebrity or real-life brand and ask users to follow their page or share their post. Sometimes, they'll attempt to entice a target by telling them they've won a contest, and all they have to do is follow a link to claim their prize. These links often request the user’s name, address, birthdate and even account information. In other cases, the link might take a target to a malicious site that attempts to install malware on their device.

In addition to impersonating celebrities, scammers often impersonate average people to attempt to scam those people’s family members or friends. For example, a fraudster might use social media to identify a person's family members. They'll then create a fake profile and reach out to family members telling them that they're in jail and need money for bail.

If you see a post or message asking for money or help that appears to be from a friend or family member, contact the person outside the social media platform to confirm that the post is real before you provide information, buy a product, or make a donation.

Subscription or In-App Purchases

Some apps will lure you with free trials. However, the fine print will hide automatic renewals after the trial period has ended with subscriptions that default to a 1-year commitment or outrageous fees.

These apps may also include in-app purchases, which seem inexpensive in the beginning, but may lead to a chain of additional purchases to fully utilize all the functions of the app.

Crypto Scams and Gift Card Scams

Some scammers use cryptocurrency or gift cards to steal funds from people. They pick these payment methods because they often untraceable and irreversible. If you’re purchasing something through a social media platform and the seller requests payment via crypto or gift card, it is likely a scam.

Likewise, if you're speaking to someone and they ask you for help or a donation using gift cards or cryptocurrency, you've likely encountered a scammer.

Clickbait Scams

Clickbait scams occur when a scammer gets a target to click on a link that takes them to a malicious webpage outside of the social media site. There, they might try to bait individuals with sensational claims or too-good-to-be-true product deals.

Sometimes a social media scammer will post a link that looks like a photo. When you click the “View More” option to see a photo collage, the link will take you outside the social media platform and to a site controlled by the scammer. These sites are often focused on capturing private information or installing malicious software.

Always be cautious of posts that open an external link. If you are interacting with something on social media and it unexpectedly opens a new page, it's best to exit it immediately.

Job/Work at Home Scams

You might see comments or receive direct messages from scammers that pitch opportunities to make money at home easily. The scammer may request payment for a sample of the product that you would be selling, but then the product never arrives. Your credit card may also get charged regularly in hopes that you don’t recognize the charges.

Romance Scams

Many scammers attempt to use fake social media profiles to make personal connections with and obtain attention from unsuspecting people. This process is commonly known as a romance scam.

During a romance scam, fraudsters will attempt to make a target feel like they have a personal, intimate and real relationship with a fake person. They might request money or gift cards while also making excuses as to why they can never meet you in person.

The “Is This You in The Photo?” Scam.

This is a popular scam where fake or compromised accounts may reach out and message you asking, “Is this you in the photo?” If you click on their suspicious link, you may unwittingly provide the fraudster with your account information, which they can then use to hack into your financial accounts or conduct other scams.

Investment Scams

If an online “friend” offers you the investment of a lifetime, beware. This person may be seeking money and request you send them money via gift card or crypto. Your actual friend’s account may have been hacked and the hacker may be using this established trust to obtain your money.

 

Ways to Protect Yourself from Social Scams

• Be skeptical about reviews for online products and services via social media, especially if they seem exaggerated or overly positive.
• Look at the history of an influencer’s post, such as when the account was created, how many likes and comments they have received and if the growth is consistent without sudden spikes. Look at the types of people who are commenting on their posts. Generic and repetitive comments could be a sign that the account is using bots to appear legitimate.
• Never give out your personal or financial information, especially during unexpected calls.
• Choose a strong, lengthy password for each online account. Avoid using birthdays, family and pet names, Social Security numbers or any fact that could be tied to your personal life.
• Be wary of unfamiliar accounts, profiles with only a few followers, and recently created accounts with a high follower-to-following ratio, or vice versa. 
• Be cautious of promises of easy fame, exclusive deals or an opportunity to meet a celebrity. Any deals that sound unrealistic are likely scams, as scammers often prey on their victims' aspirations and desires.
• Be aware of scammers creating a sense of urgency and pressure in order to persuade you to take action quickly.
• If you suspect a scammer is using a friend’s account, reach out to the friend through another communication method to confirm if it is them.

Remember, if something on social media seems too good to be true, it likely is. While no one rule is enough to prevent all types of fraud, being routinely cautious and skeptical can help you stay safe in most situations online.

If you or a loved one becomes a victim of a scam, report it to the FTC as soon as possible. If the scam involves your finances, be certain to report the incident to your financial institution as well.