Social media scams hit an all-time high last year, new figures from the Federal Trade Commission (FTC) have revealed.
The FTC says a quarter of all fraud losses in the year occurred on social media, with victims losing about $770 million in 2021 (at an average of about $460 per scam), an 18-fold increase. higher than the €42 million lost just five years ago.
While previously it was the older population that was gullible and easily defrauded, it now appears that this trend is changing, with consumers aged 18-39 reporting 2.4 times more fraud than those aged 40 and over.
Investment and cryptocurrency fraud
Of all the different methods used by scammers, two stand out as the most popular: romance and investment.
When it comes to romance scams, the premise is simple: the victim (someone under a false identity, be it on Facebook or Instagram) will first be approached with a friend request or a follow, after which the attacker will engage in engaging activities. seemingly innocent. . conversation. One thing will lead to another and the attacker will start asking for money.
Investment fraud is a bit more elaborate. Although the platforms are the same, the approach methods may vary. In some cases, people will come across advertisements promoting different "investment opportunities", or will be approached by people advertising these things. More than half (54%) of investment scams in 2021 took off from social media.
The proliferation of cryptocurrencies has only made investment scams more dangerous. The ease with which people can now send their money, often without third-party oversight, has made it an ideal channel for scammers. Last year, cryptocurrency was the preferred payment method in nearly two-thirds (64%) of all social media investment scams.
The full FTC report, with a more detailed breakdown of social media (and other) fraud, can be viewed at this link.