FTC Reports $2.1B in 2025 Social Media Scam Losses

The FTC’s 2025 Social Media Scam Report

The Federal Trade Commission (FTC) reported that Americans lost at least $2.1 billion to social media scams in 2025, an eightfold increase since 2020. The agency traced 40% of these losses to shopping-related ads directing users to unfamiliar websites, with romance and investment scams identified as major categories.

The FTC’s data highlights Facebook as the primary platform for scams, followed by WhatsApp and Instagram. A lawsuit filed against Meta last week alleged the company profited from ads promoting scams and illegal products. Internal Meta documents, cited in Reuters reporting, suggest the company projected $16 billion in 2024 revenue from such ads—10% of its total forecast—before disputing the accuracy of these figures.

Regulatory Response and Legislative Proposals

Senators Ruben Gallego (D-AZ) and Bernie Moreno (R-OH) introduced the Safeguarding Consumers from Advertising Misconduct (SCAM) Act, requiring social media platforms to verify advertisers’ legal existence and government-issued identification. The bill, endorsed by the American Bankers Association and AARP, would classify noncompliance as a violation of the FTC’s unfair business practices rule. It also permits state attorneys general to pursue civil actions against platforms failing to act on scam reports.

Meta, which owns the three most affected platforms, has rejected advertiser verification mandates as “not a silver bullet.” The company’s internal “regulatory playbook,” revealed in December, outlined strategies to delay or weaken similar legislation. A Meta spokesperson emphasized collaboration with regulators but disputed claims that the company intentionally obstructs anti-scam efforts.

Scam Mechanics and Consumer Risks

The FTC and FBI data reveal overlapping vulnerabilities. The FBI reported $21 billion in total internet-related scams for 2025, with cryptocurrency and AI-driven scams accounting for $893 million. Scammers exploit sponsored ads, often appearing in search engine results or social feeds, to mimic legitimate retailers, banks, and government services. These ads frequently include “too good to be true” offers, fake support numbers, or phishing portals.

The CFPB, currently operating with 90% fewer staff than its peak, has been proposed as a centralized hub for scam reporting and education. Advocates argue its existing complaint database could streamline intake for victims, though the agency’s reduced funding and rulemaking capacity under the One Big Beautiful Bill Act complicate this role. Critics note that law enforcement agencies remain fragmented in handling cross-border and tech-enabled scams.

What to Watch in 2026

Three developments will shape the next phase of this issue. First, the FTC’s enforcement actions under the SCAM Act, should it pass, will test platforms’ compliance with advertiser verification. Second, the CFPB’s potential restructuring to address scam reporting could redefine federal oversight. Third, Meta’s legal battles over ad revenue transparency—specifically its $16 billion 2024 projection—will determine whether courts or regulators impose binding requirements on platform accountability.

Consumers are advised to scrutinize URLs, avoid sharing personal data with unsolicited contacts, and verify websites through trusted directories like BBB.org. The FTC’s guidance also warns against allowing social media contacts to influence investment decisions. As AI tools refine scam tactics, proactive measures like multi-factor authentication and privacy settings will remain critical for reducing exposure.

Updates

• 2026-04-28 — The FTC says Americans lost at least $2.1 billion to social media scams in 2025 (source)