FTC: Social media scams drive $2.1B in losses in 2025, investment fraud accounts for over half

New data from the Federal Trade Commission shows that social media has become the leading channel for consumer fraud, with reported losses reaching $2.1 billion in 2025. The figure marks an eightfold increase since 2020, highlighting the growing role of digital platforms in large-scale scam operations.

According to the agency, nearly 30% of consumers who reported financial losses said the initial contact with scammers occurred on social media. Among platforms, Facebook accounted for the highest share of reported losses, followed by WhatsApp and Instagram.

Investment Scams Lead Financial Losses

Investment-related fraud represented the largest portion of total losses, accounting for $1.1 billion in 2025—more than half of all social media scam-related losses. These schemes typically begin with advertisements or posts promoting investment opportunities or educational programs. In many cases, scammers impersonate advisors or create groups with fabricated testimonials to build credibility.

The FTC noted that these tactics increasingly mirror legitimate marketing strategies, using targeted ads and audience segmentation tools to reach potential victims.

Shopping Scams Most Common by Volume

While investment scams generated the highest financial losses, shopping scams were the most frequently reported. Over 40% of victims said they purchased products advertised on social media platforms, ranging from apparel and cosmetics to automotive parts and pets.

Many of these transactions directed users to unfamiliar or fraudulent websites, while others mimicked established brands with discounted offers designed to prompt immediate purchases.

Romance Scams Continue to Scale

Romance scams also remained a significant category, with nearly 60% of reported cases originating on social media. These schemes often involve prolonged interaction, where scammers build trust before requesting money under fabricated circumstances or redirecting victims to fraudulent investment platforms.

Social Media as a Primary Entry Point

The FTC’s findings indicate that social media has surpassed other contact methods—including email and text messaging—as the primary entry point for scams. The accessibility of large user bases, combined with low operational costs and advanced targeting tools, has enabled fraudsters to scale operations more efficiently.

Losses linked to social media scams exceeded those reported through traditional digital channels, underscoring a shift in how scams are initiated and executed.

The report highlights ongoing challenges for platform operators and advertisers, as the same targeting infrastructure used for legitimate campaigns can also be exploited for fraudulent activity. The FTC advises users to limit profile visibility, verify sellers before making purchases, and avoid engaging with unsolicited investment opportunities.