In recent years, Social Media has become an integral part of our lives. Social media usage was estimated at 3.6 billion in 2025. This number is expected to increase to 4.41 billion users by 2025. It is not only the link to the rest of the world but also a breeding ground for criminals.
Social media allows fraudsters to easily hide their tracks. This leads them to commit different types of scams, which affect the private information of users. They also use this information for cybercrime on a higher level.
Here are the top social media scams that cause huge financial losses as well as informational data breaches.
Four types of social media scams
Ponzi Schemes
The fraudsters will promise ” too good to be true ” returns on an investment. Fraudsters create a scheme that is so convincing and appealing, even the most skeptical individuals are lured in. These Ponzi Schemes are organized by a group of people who promise investors profits without risk.
Fraudsters do not plan to invest money. They want to reward the early investors in order to gain their confidence and make the scam believable. People end up selling their properties and investing their savings to get quick money.
Online Shopping Fraud
Online shopping fraud is a very common social media scam that follows the investment scam. In 2021, the average amount of money reported as lost through social media scams was 45%. Nearly 70% reported instances where they ordered a product after seeing an advertisement but never received it. Some people reported cases where ads impersonated online retailers, redirecting them to fake websites.
Social Media Phishing
Scammers will create fake profiles, websites, or posts on social media to trick people into sharing confidential information. Scammers impersonate the name or logo of a legitimate company and trick visitors into providing sensitive information such as credit card numbers, SSNs, etc.
Scammers can use the information provided by the visitor to access your bank account, steal your identity, or make fraudulent purchases. In another instance, the scammers may take over an account through data breaches, malware, phishing, or other methods. The scammers then use the profile they have hacked to solicit money from friends or promote their fraud site.
Job Scams
Scammers will create an ad or post on social media promising a well-paying position in exchange for a small advance fee. The job, however, does not exist. A fraudulent employer will also send a fake check to a new employee before their joining date, and then ask them to send back money to pay for supplies or training.
The prospect is then held responsible for any money that was sent to the scammer when they deposit the fake cheque. It also hurts the reputation of the company, as fraudsters often impersonate the legitimate firm to perpetrate the fraud.
Three ways to stay safe from social media scams
Be More Vigilant
Be cautious when accepting requests on social media to stay safe from cybercriminals. Hackers can pose as a trusted friend, colleague, or acquaintance to trick you into sending money or sharing confidential information. Scammers often pose as legitimate businesses and trick people into sharing account information.
Use Two-Way Authentication
Two-factor authentication is available on all social media platforms to protect the account information of users. This adds a layer of security to ensure that the person who is accessing your account is authentic. This feature allows users to link their account and their phone number in order to verify codes sent by email or text.
Avoid All Suspicious Links
Be cautious when you click on the internet. Malicious links can lead to viruses, ransomware, or identity theft. These links may trigger malware or redirect you to a fake site that steals your login information.
Conclusion
Scams on social media not only compromise the privacy of users but also negatively impact their reputation. Scammers are waiting for you to let down your guard, and they will lure you into false promises and deals.
It is important to remain vigilant when using social media and avoid being lured in by “too-good-to-be-true” offers. Social media is growing in popularity, and it’s important to stay safe from scams.
