FTC: Social Media Scams Cost Americans $2.1B in 2025

Executive Summary

The U.S. Federal Trade Commission (FTC) reported that Americans lost over $2.1 billion to scams originating on social media platforms in 2025, according to data released April 27, 2026. This marks a tenfold increase from $210 million in 2020, with investment fraud and romance scams accounting for the largest share of losses. The FTC attributed the surge to the ease with which fraudsters create fake profiles and targeted ads on platforms like Facebook and Instagram.

Technical Analysis

The FTC's data, drawn from consumer reports to its Consumer Sentinel Network, shows that investment scams were the costliest category, with median losses of $5,000 per victim. Romance scams followed, with median losses of $2,500. Fraudsters increasingly use social media to impersonate trusted entities, leveraging platform features such as sponsored posts and direct messaging to reach victims. The FTC noted that Meta-owned platforms (Facebook and Instagram) were the most frequently cited in reports, though the agency did not attribute the increase to any specific technical vulnerability.

A key factor is the scalability of social media advertising: scammers can purchase targeted ads to appear legitimate, then direct victims to fake investment portals or cryptocurrency wallets. The FTC highlighted that losses from cryptocurrency-related scams on social media rose sharply, though it did not provide a separate figure for 2025. The agency also flagged that younger adults (ages 20-29) reported losses at a higher rate than older demographics, contrary to stereotypes about scam victimization.

The FTC's methodology relies on self-reported data, which likely undercounts actual losses. The agency cautioned that many victims do not report scams due to embarrassment or lack of awareness.

Mitigations & Recommendations

The FTC recommends consumers verify the identity of any individual or business encountered via social media before sending money or sharing financial information. For defenders, the agency advises platform operators to implement stronger verification processes for advertisers and to flag accounts that rapidly scale messaging to multiple users. The FTC also encourages financial institutions to monitor for unusual transactions linked to social media-originated contacts, though it did not specify technical controls.