Social Media Scams: How to Protect Yourself From Online Fraud
Social media makes it easier than ever to connect with friends, discover new businesses and shop online. Unfortunately, it can also provide scammers with opportunities to reach potential victims.
According to the Federal Trade Commission (FTC), nearly 30% of people who reported losing money to a scam in 2025 said the scam started on social media. Reported losses reached $2.1 billion.
Scammers may use fake profiles, compromised accounts, fraudulent advertisements or convincing websites to gain your trust. Knowing what to watch for can help you protect your personal and financial information.
How Social Media Scams Work
Social media can give scammers access to information that helps make their messages appear more believable. Public posts, interests and connections may provide details they can use when targeting potential victims.
Scammers can also purchase social media advertisements that look similar to legitimate ads. These may promote products, investment opportunities or other offers designed to convince you to click a link, provide personal information or send money.
Three simple habits can help you stay safer online:
1. Protect Your Privacy
Review your social media privacy settings and limit who can see your posts, personal information and connections. Consider carefully what information you make publicly available.
The less information scammers can access, the less they may have to work with when attempting to create a convincing message or impersonate someone you know.
2. Be Cautious With Investment Opportunities
Use caution if someone you meet through social media offers investment advice or encourages you to send money for an investment opportunity.
Promises of guaranteed returns, unusually high profits with little or no risk, or pressure to make a decision quickly are warning signs. Take time to independently research an investment opportunity and the person or company offering it before providing money or financial information.
3. Research Before You Buy
Social media advertisements can make unfamiliar businesses and offers look legitimate. Before purchasing something you discover through an ad, take a few minutes to research the seller.
Visit the company's website independently rather than relying solely on a link in the advertisement. Search for the business name along with terms such as “scam,” “complaint” or “review.” Be especially cautious of unusually large discounts, limited-time offers or sellers that pressure you to act immediately.
Stop. Verify. Protect.
A professional-looking social media profile, advertisement or website does not necessarily mean the person or business behind it is legitimate.
Before clicking a link, making a purchase, sharing personal information or sending money, slow down and independently verify who you're dealing with. A few extra minutes of research can help you recognize potential fraud before money or information changes hands.
If you believe you've encountered a scam involving your Five Points Bank account or notice suspicious account activity, contact your local Five Points Bank branch or our Customer Support Team at (800) 576-4687.
For additional information about identifying and reporting scams, visit the Federal Trade Commission's consumer resources.
Source: Federal Trade Commission, Consumer Sentinel Network data, 2025.