That great bargain you just spotted on social media? Well, proceed with caution before you pull out that credit card. The eye-catching ad might look legitimate, but many too-good-to-be-true deals are nothing but scams.
Consumers reported losing $794 million to scams that started on Facebook in 2025 — far more than what was lost to scams that began on any other social media platform last year, according to new data.
In 2025, according to Federal Trade Commission data, people reported far more money lost to scams on Facebook alone than they reported losing to text or email scams.
The FTC reported in a Data Spotlight that WhatsApp came in second with $425 million reported lost, and $234 million was reported lost to scams that started on Instagram. Meta Platforms owns Facebook, WhatsApp and Instagram.
Scammers Thrive on Social Media
In all, consumers reported losses of $2.1 billion to scams where the initial point of contact was on all types of social media, according to the FTC. Social media was the top contact method by reported losses.
Two billion dollars is a lot of money, no matter how you slice it. But it’s even more shocking when you consider that the losses shot up eight times the level in 2020. In 2020, consumers who said they connected with scammers on social media reported losing $261 million.
Crooks and con artists stole a record $15.9 billion in 2025 total in a variety of scams — up from $12.5 billion in 2024, according to the latest data from the FTC. The FTC noted that reports were not collected during the 43-day federal government shutdown in the fall of 2025, meaning the real losses are likely much higher.
Social media is ideal for scammers because it’s easy to pretend to be someone you’re not. Some hack into your account to pose as you and steal from your friends and family.
Some victims easily lose $2,000 to $3,000 a pop when sending a down payment for an item that doesn’t even exist — such as a truck supposedly sold by your friend’s sick uncle who doesn’t actually exist.
And then there are the fake ads for pretty dresses, cute gifts and more that are designed to steal cash and ID information.
Watchdog Wants Meta to Be a ‘Safer Place’
The Consumer Federation of America filed a class action complaint in the District of Columbia in late April against Meta Platforms, accusing Meta of failing to protect consumers from paid advertisements that prove to be scams.
The goal is to force better practices from Meta, said Ben Winters, director of AI and Privacy for the Consumer Federation of America.
Winters said the platform needs to be made a “safer place” where consumers face fewer threats from scam ads. Meta, he said, also needs to be held responsible for illegal behavior that so far hasn’t been remedied through legislation or promises.
“We also hope to learn more about their practices and bring transparency to a remarkably untransparent and inconsistent company,” Winters said.
The consumer watchdog group charged that Meta promises users it is meaningfully fighting scams and removing scam content from its platform but instead has adopted policies and practices that it knows allow scam advertisements to proliferate. Facebook, the group charges, simultaneously profits from those ads at the expense of its users.
“Meta claims it is doing all it can to crack down on scam advertising on its platforms. But in reality, Meta has knowingly taken steps and adopted policies that pad its bottom line at the expense of its users’ safety and well-being. In fact, rather than prohibiting advertisers who the company itself has determined pose a higher risk to its users (as other tech companies like Google have), Meta just charges these advertisers more,” according to the class action complaint.
Meta did not respond when asked about the lawsuit or losses.
How Meta Is Using AI to Fight Scams
In March, Meta issued a press release indicating the tech giant is launching new tools on Facebook, Messenger and WhatsApp to help protect against scams.
In 2025, Meta said it removed more than 159 million scam ads for violating its policies and took down 10.9 million accounts on Facebook and Instagram associated with criminal scam centers.
Among other steps, Meta said it will use advanced AI systems that can analyze multiple signals — such as text, images and the surrounding context — to spot a broader range of sophisticated scam patterns more quickly.
Don’t Trust — Just Verify if It’s Real or a Scam
Scammers tap into social media as a way to gain your trust before stealing your money. It’s not unusual to run across ads impersonating medical doctors and celebrities to sell possibly dangerous health products, according to a study by Reset Tech, an independent not-for-profit that researches how digital media is exploited to threaten consumers.
In other cases, scammers develop a profile of you based on what you post online. Seem to be single and searching for love? They’ll send a message from an attractive prospect who shares your interests. Down the line, after gaining your trust, they will create a crisis where they need cash — or offer investment advice to lure you onto a fake investment platform.
According to the FTC, shopping scams were the most reported type of social media scam in 2025. More than 40% of people who lost money to a scam on social media said they ordered something they saw in an ad that either never arrived or proved to be of poor quality. Investment scams set off the biggest reported losses, with consumers reporting $1.1 billion lost — more than half the money reported lost in all social media-related scams.
You Have to Protect Yourself
How do you avoid losing money to scams on social media? The FTC and others recommend:
Limit who can see your posts and contacts on social media. Visit your privacy settings to set some restrictions so scammers have less to work with.
Never let someone you have met only on social media suggest a way for you to invest your retirement nest egg. Instead, learn more about spotting investment scams.
Before you buy, search online for similar products or deals and use the words “scam” or “complaint.”
If a friend seems to be selling watches or trucks out of nowhere, contact them by phone or through a mutual friend before sending any money. Remember, scammers can change email addresses once they take over an account.
Enable two-factor authentication on your social media accounts for an extra layer of protection.
Contact personal finance columnist Susan Tompor: [email protected]. Follow her on X @tompor.
