Scams Rising on Social Media
Fraudsters are increasingly exploiting the vast expanse of social media platforms, as revealed by recent data from the FTC's Consumer Sentinel Network. Approximately one in four individuals who reported financial losses due to fraud in the past two years stated that their troubles originated on social media. The staggering amount of money lost through social media scams reached $2.7 billion, surpassing losses from website scams, app scams, phone calls, emails, or texts. The actual sum lost is likely much higher, given the underreporting of such cases.
Social media provides scammers with ample opportunities. With the advent of generative AI, they can swiftly create fake identities or compromise genuine-looking profiles to impersonate individuals and deceive their connections. Furthermore, scammers can tailor their deceptive strategies by leveraging the information users openly share on social media, such as age, interests, or past purchases.
One common scheme plaguing social media users involves fraudulent friend requests. Once accepted, scammers engage users in seemingly friendly conversations based on information from their profiles. Eventually, they may propose "good deals," investment opportunities, or even romance, only to later request money. To safeguard against such scams, Kira Krown, a Consumer Education Specialist at the FTC, recommends adjusting privacy settings to limit the visibility of personal information and posts.
Facebook Marketplace, a popular platform for buying and selling, is not immune to scams. Scammers are increasingly drawn to the platform, with one prevalent issue being fake merchandise. Users may encounter counterfeit high-end brands like Gucci or Prada, which later prove to be knock-offs. To identify potential scams on Facebook Marketplace, consumers should watch for suspiciously low prices on high-end items, sellers who avoid in-person meetings, and any attempts to move conversations outside of Facebook Messenger. Additional red flags include buyers sending prepaid shipping labels, overpayment, requests for personal phone numbers, missing profile photos, or requests for payment with gift cards. As a rule of thumb, if something appears too good to be true, it likely is a scam, warns Patrick Kopins, COO of OvalEdge.
