Consumers in the United States lost an estimated $2.1 billion to scams that originated on social media platforms in 2025, according to new data released by the Federal Trade Commission.
The FTC report shows that nearly 30 percent of people who reported losing money to fraud said the initial contact came through social media. This makes it one of the most common entry points for scams, rivaling traditional channels such as phone calls and email.
The scale of the losses is striking not only in absolute terms but also in how quickly the problem has grown. Social media scam losses have increased dramatically over the past five years, rising from just a few hundred million dollars in 2020 to more than $2 billion in 2025. This rapid growth reflects both the expansion of social media usage and the increasing sophistication of fraudsters.
Investment scams accounted for the largest share of financial losses. Victims were often lured through ads or posts promising high returns, sometimes presented as trading courses or exclusive investment groups. In many cases, scammers created entire online communities filled with fake testimonials to build credibility before persuading victims to send money.
Shopping scams were the most frequently reported type of fraud. Consumers clicked on ads for discounted goods ranging from clothing to electronics, only to receive counterfeit items or nothing at all. Romance scams also remained a major threat, with fraudsters building emotional relationships before requesting money, often under the guise of emergencies or investment opportunities.
Meta-owned platforms featured prominently in the data, with Facebook accounting for the majority of reported cases. Instagram and WhatsApp followed at a distance. The dominance of these platforms highlights how scammers exploit large user bases and sophisticated advertising tools to target victims with precision.
Social media platforms are designed to connect billions of users, allowing businesses to target audiences based on interests, behaviour, and demographics. Scammers are increasingly using the same tools, purchasing ads or scraping personal data from profiles to craft highly personalised scamming schemes.
The findings suggest that fraud is not just increasing in volume but evolving in method. Social media has lowered the cost of reaching potential victims while increasing the effectiveness of deception. As scams become more tailored and convincing, the line between legitimate commerce and fraud continues to blur.
For regulators and tech companies, the challenge is growing more urgent. The FTC data makes clear that tackling online fraud will require more than awareness campaigns. It will demand stronger platform accountability, improved detection systems, and possibly new rules governing digital advertising and identity verification.
For users, the message is equally stark. The platforms that connect friends, promote businesses, and drive digital economies are now also central to one of the fastest growing forms of financial crime.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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