FTC Issues Social Media Scam Warning as Losses Climb to a Record $2.1 Billion

The Federal Trade Commission (FTC) has released a report revealing that Americans lost more than $2.1 billion to social media scams last year, a record high not just in numbers, but in the sophistication of online criminals. In stark comparison, the commission stated that reported losses have jumped eight-fold since 2020.

According to the latest data, the most lucrative schemes identified involve fraudulent investment opportunities, particularly those promising high returns, such as on cryptocurrencies. Scammers have been using professional-looking advertisements and hijacked accounts to create a false sense of legitimacy, then luring victims into fake investment platforms that allow them to see phantom gains on a screen while their actual funds are diverted into untraceable wallets. These investment scams alone accounted for nearly $1.1 billion in losses, likely leaving thousands of individuals with emptied retirement accounts and significant debt.

Elsewhere, the report warns against romance scams. In these ...