Social Media Scams Cost Americans $2.1 Billion in 2025

Key Takeaways

• Social media scam losses hit $2.1 billion in 2025, up eightfold from 2020
• Investment scams accounted for $1.1 billion, with shopping fraud affecting over 40% of victims
• Facebook was the top platform for scam origins, with WhatsApp and Instagram trailing

Americans lost at least $2.1 billion to scams that started on social media in 2025, according to a new Federal Trade Commission report. That figure represents an eightfold increase since 2020.

The numbers paint a troubling picture of how fraudsters have adapted to where people spend their time online. As social platforms became central to daily life, they also became prime hunting grounds for criminals.

Investment Fraud Leads the Losses

Investment scams accounted for the largest chunk of losses. Americans reported losing $1.1 billion last year to investment fraud that began on social media. The FTC says these scams often start with a post or ad promoting a program that claims to teach people how to invest.

The pitch is familiar: promises of easy returns, insider knowledge, or guaranteed profits. Victims get drawn into fake investment platforms or are convinced to send money to accounts they never see again.

Shopping Scams Catch the Most Victims

While investment fraud took the most money, shopping scams caught the most people. More than 40 percent of Americans who lost money through a social media scam last year blamed shopping-related ads. Many of these ads led victims to unfamiliar websites where they paid for goods that never arrived.

The FTC also highlighted romance scams as a persistent problem. These fraudsters build fake relationships over weeks or months before asking for money, often claiming emergencies or travel needs.

Facebook Leads, Meta Faces Lawsuit

Most of these scams started on Facebook, with WhatsApp and Instagram trailing in "a distant second and third," the FTC noted. All three platforms are owned by Meta.

The timing is notable. A lawsuit filed against Meta last week claimed the company misled users about scam ads on its platforms. Reports from 2025 indicated Meta was making billions of dollars from ads promoting scams and illegal products.

The Bigger Picture: $21 Billion in Internet Crimes

Social media scams are just one slice of the problem. The FBI reported earlier this month that Americans lost nearly $21 billion to internet-related crimes in 2025. More than half of that total, over $10 billion, went to cryptocurrency scams.

Artificial intelligence scams cost Americans around $893 million last year, according to the FBI. These figures only reflect reported losses. Many victims never file complaints with the FBI or FTC, meaning actual losses are likely higher.

How to Protect Yourself

The FTC offers practical advice for avoiding social media scams:

• Limit who can see your posts so scammers have less personal information to exploit
• Never let someone you have only met online direct your investment decisions
• Search a company's name along with "scam" or "complaint" before buying anything
• If something sounds too good to be true, it probably is

The core problem is that social media ads can look legitimate even when they are not. Platforms profit from ad revenue regardless of whether the advertiser is honest. Until that incentive changes, users must remain their own first line of defense.

Frequently Asked Questions

How much did Americans lose to social media scams in 2025?

According to the FTC, Americans lost at least $2.1 billion to scams that originated on social media in 2025, an eightfold increase from 2020.

Which social media platform has the most scams?

Facebook leads as the platform where most social media scams originate, with WhatsApp and Instagram following in a distant second and third place.

What type of social media scam costs the most money?

Investment scams cost the most, with Americans losing $1.1 billion to investment fraud that started on social media in 2025.

How can I avoid social media scams?

The FTC recommends limiting post visibility, never taking investment advice from online-only contacts, and searching any company's name with "scam" or "complaint" before purchasing.

Source: Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics