FTC says social-media ad scams generated over $90 million in losses last year

The Federal Trade Commission disclosed that social-media advertising scams resulted in losses exceeding $90 million in the latest reporting period, an eightfold increase from 2020. About 30% of victims traced the start of their loss to a social-media site, and Facebook was identified as the platform with the most reported incidents, with WhatsApp and Instagram close behind. Every age cohort except those over 80 reported greater losses from social-media scams than from any other avenue.

The scams took several forms, including investment schemes, shopping frauds— the most frequently reported type— and romance scams, nearly 60% of which originated on social media. The FTC advises users to restrict who can view their posts and to avoid letting online-only contacts dictate investment decisions.