A new report from the Federal Trade Commission reveals that consumers in the U.S. lost a staggering $2.1 billion to scams that originated on social media in 2025—making it the most costly channel for fraud.

According to LumenCodes, these losses have surged dramatically, increasing eightfold in recent years. Nearly 30% of victims said their scam began on social platforms, highlighting just how central these apps have become in modern fraud schemes.

Where Most Scams Are Happening

Among platforms, Facebook accounted for the highest number of reported losses—far exceeding scams that started via text messages or email. WhatsApp and Instagram followed but at much lower levels.

Most Common Scam Types

The FTC identified several major scam categories:

• Shopping scams (most common):
  Over 40% of victims reported buying products advertised on social media—ranging from clothes and cosmetics to car parts and even pets. Many were redirected to fake or unfamiliar websites, sometimes impersonating well-known brands with “too good to be true” discounts.
• Investment scams (most costly):
  These scams caused around $1.1 billion in losses. Fraudsters often lure users through ads promising investment advice or financial education. Some pose as experts or create fake group chats filled with fabricated success stories to build trust.
• Romance scams:
  Nearly 60% of victims said these scams started on social media. Scammers typically build emotional connections before inventing emergencies or subtly pushing victims toward fraudulent investment opportunities.

How to Stay Safe

The FTC recommends a few key precautions:

• Limit who can view your posts and personal details
• Avoid taking financial or investment advice from strangers online
• Research sellers and websites thoroughly before making purchases
• Search company names along with terms like “scam” or “complaint”

The Bigger Picture

Social media platforms have become powerful tools—not just for connection, but also for manipulation. As scammers grow more sophisticated, users need to stay alert and skeptical, especially when money is involved.

The rise in losses shows one thing clearly: the biggest risk isn’t just clicking the wrong link—it’s trusting the wrong person.