A sharp rise in online fraud is costing Americans billions, and popular apps are now at the center of the problem. A new report from the U.S. Federal Trade Commission found that consumers lost $2.1 billion to social media scams in 2025, marking a dramatic increase over previous years.
According to the FTC, losses connected to scams that began on social media have grown eightfold. The agency also said social media generated higher scam-related losses than any other contact method used by fraudsters.
Nearly 30% of people who reported losing money said the scam started on a social platform. Facebook accounted for more reported losses than any other platform, while WhatsApp and Instagram followed behind. Consumers also said Facebook-related scams caused greater losses than scams that started through text messages or email.
Shopping scams were the most commonly reported category. More than 40% of victims said they bought products they first saw advertised online. Those purchases ranged from clothing and cosmetics to car parts and puppies. Many shoppers were redirected to unfamiliar websites, while others landed on fake pages pretending to be trusted brands offering steep discounts.
Investment fraud was another major category. Scammers used ads and posts claiming they could teach people how to invest. Others posed as advisers or created WhatsApp groups filled with fake testimonials. The FTC said these investment schemes led to $1.1 billion in losses.
Romance scams also remained widespread. Nearly 60% of people who reported losing money in romance fraud cases said the interaction began on social media. Scammers often study a victim’s profile, build trust, then invent emergencies or push fake investment opportunities.
The FTC urges users to tighten privacy settings, avoid taking investment advice from strangers online, and research companies by searching their names alongside “scam” or “complaint.”
