Americans are losing billions of dollars to scams that begin on social media, with fraud reports and losses rising sharply in recent years as platforms such as Facebook, Instagram and WhatsApp remain central channels for deceptive ads, investment pitches and shopping traps, according to figures cited in the material provided.
Losses From Social Media Scams Continue to Climb
Nearly 30 per cent of people who reported losing money to a scam in 2025 said it began on social media, according to the Federal Trade Commission. Americans reportedly lost $2.1 billion to social media scams last year, a figure described as eight times higher than in 2020.
The sharp rise to the pandemic period. In 2019, the FTC reported $134 million in losses linked to social media scams. In just the first six months of 2020, losses had already reached nearly $117 million. Those losses have since surged into the billions.
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Meta Platforms Under Scrutiny
Meta owned platforms is the biggest targets for scammers. Facebook is described as the largest source of losses, costing Americans $794 million last year. WhatsApp and Instagram followed, with reported losses of $425 million and $234 million respectively.
The reports also cites a Reuters investigation from December saying Meta took in more than $18 billion from Chinese advertisers, with nearly a fifth of them tied to scams, illegal gambling, pornography and other banned content. Reuters was also cited as reporting that Meta shows users as many as 15 billion high risk scam ads per day, generating about $7 billion annually.
Investment and Shopping Scams Drive Losses
Americans lost $1.1 billion to social media investment scams, which often begin as offers to teach people how to invest. Shopping scams were described as the most commonly reported scheme, with more than 40 per cent of people saying they lost money after ordering something through an advertisement.
One in three people who reported losing money to a job or business opportunity scam in 2025 said it started on social media. Nearly 60 per cent of those who reported losses to romance scams also said the fraud began on social platforms. Meta, according to a statement quoted in the material, said it removed more than 159 million scam ads last year, reduced reports of scam ads per view by more than 55 per cent, and was continuing to invest in tools, advertiser verification and scam prevention resources.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
