Social media scammers racked up $770 million in 2021. The Federal Trade Commission’s latest report on the topic says social media scams now account for a quarter of all reported fraud.

What You Need To Know

  • Social media scams now account for one in four cases of reported fraud, according to the FTC

  • FTC warns to be cautious of people who ask for the information on the back of gift cards, any of your social media logins or bank wire transfers

“I was scammed by my client back in October,” said All Stylez Barbershop owner Edgar Mendez. “She brings her son to get a haircut. She had asked me if I wanted to make $500.”

Edgar Mendez said his client asked him to send her a video of him advertising Bitcoin mining.

“She asked me to send the video to her WhatsApp and then request a code through IG,” said Mendez. “I sent the video at 5:42 p.m. and right after I was locked out of my account.”

Mendez said the scammer offered to give him access to his account if he paid her $100.

“I couldn’t believe she scammed me," said Mendez. "I made a new account and reported that one. I’m telling everybody not to follow that page — that it’s hacked.”

He said Instagram still hasn’t responded to any of his attempts to report the page.  

“I’ve reached out over 100 times,” said Mendez. “I still locked out of my account.”

The FTC’s latest report warning people of social media scams like this one and said the growing problem reached a peak last year.

 

I’d say we’ve seen a huge surge,” said Emma Fletcher with the Federal Trade Commission. “Based on the data we have, it appears social media is the most profitable way for scammers to reach people. One in four people who reported losing money said it started on a social media site.”

The FTC says to be cautious of people who ask for the information on the back of gift cards, any of your social media logins or bank wire transfers.