1st Quarter, 2022
SOCIAL MEDIA: A GOLD MINE FOR SCAMMERS
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ince its inception, social media has been a magnet for scammers looking for information to steal and exploit. However, it was truly a gold mine for them in 2021.
Reports about fraud originating on social media soared over five years
2021 total reported losses were about 18 times what they were in 2017, and the number of people who reported losing money in 2021 grew to 19 times higher than those reports in 2017.
According to data collected by the Federal Trade Commission (FTC), social media was more profitable to fraudsters than any other single method of reaching people last year, accounting for about $770 million in losses. The graph to the right tells the story. Total reported losses to fraud originating on social media were 18 times higher in 2021 than in 2017. The biggest financial losses reported in 2021 came from investment scams, including a huge surge in bog us cryptocurrency schemes. More than half of the victims reported that the scam started on social media. Often the crooks posed as supposed friends to encourage people to invest.
by
T O D D S . A DA M S chief executive officer
orders for items they saw marketed on social media, but then never received them. No age group is immune to scams, and bad actors troll for victims on every single social media platform, including the emerging “metaverse,” an online virtual reality world with its own alternate identities and economy. Scammers create bots, or automated programs that can steal financial details under the pretense of selling in-game currency and NTFs (non-fungible tokens). How can you better protect yourself in any online social space? Be wary of anyone, including • “friends,” encouraging you to make any kind of investment.
Figures based on fraud reports directly to the FTC indicating a monetary loss and identifying social media as the method of contact. (FTC.gov)
Never send money to someone • you’ve never met in person.
Online romance scams were the second most profitable fraud in 2021, and more than a third of victims who reported losses stated the communication began on Facebook or Instagram.
Keep in mind that scam websites • can mimic trusted brands. Instead of clicking on social media ads or links, go directly to stores’ original websites. You can also opt out of targeted ads in your device’s privacy settings.
While investment and romance scams accounted for the most dollars lost, the largest number of people were affected by online shopping fraud. Victims often placed
In general, use caution when linking your real financial information to virtual worlds. It’s good to know who’s in your wallet; make sure it’s you!
QUICK TIP: Adams Alerts help you stay on top of all account activity. You may not notice a fraudulent withdrawal or recurring payment immediately, but Alerts can do the legwork and tip you off in real time. Call us or stop in with any questions about setting up various alerts in our mobile app.
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