Security News > 2023 > October > FTC warns of ‘staggering’ losses to social media scams since 2021
The Federal Trade Commission says Americans have lost at least $2.7 billion to social media scams since 2021, with the actual number likely many times larger due to severe under-reporting.
"Reported losses to scams on social media during the same period hit a staggering $2.7 billion, far higher than any other method of contact," said Emma Fletcher, a Senior Data Researcher at the FTC. "And because the vast majority of frauds are not reported, this figure reflects just a small fraction of the public harm."
The FTC advised U.S. consumers today to exercise caution and safeguard themselves against such scams, encouraging individuals at risk to restrict their social media posts and contacts, reaching out directly by phone if someone, even a purported friend or relative, solicits money through social media.
"Reports during the first half of the year show that the most frequently reported scams on social media are related to online shopping, with 44 percent of reports pointing to fraud related to buying or selling products online," the FTC said.
In February, the FTC said U.S. consumers lost a record $8.8 billion to various types of scams in 2022, after a massive increase of over 30% in fraud losses compared to the previous year.
At the time, the agency revealed that roughly 2.4 million Americans reported financial losses due to scams last year, with a majority falling prey to impostor and online shopping scams in 2022.