Recent 2023 data from the Federal Trade Commission (FTC) reveals that social media is the channel with the highest fraud losses when compared to all other methods of contact.
Over the years, social media has evolved as a tool for direct information exchange into a retail and marketing platform to feed our desire for connection and information. However, this exposure also draws the interest of criminals looking to manufacture new and creative fraud schemes and to expand their outreach to find more victims. Furthermore, social media profiles are easy to fabricate and difficult to trace back to the true individual. As people become increasingly open with sharing information online, remain diligent in protecting yourself while navigating social media platforms.
The best ways to protect yourself from a scam on social media is to limit what you share and who can see your posts and information via your privacy settings and to be able to recognize a scam on social media.
Top 3 Scams on Social Media
1. Investment Scams – Investment scams account for over half of the social media losses reported to the FTC. The fraudster presents a promising investment opportunity to obtain funds from you by gaining your trust through success stories, one on one interactions over chat apps, or other forms of “proof” such as screenshots from a brokerage account.Frequently, investment scams involve cryptocurrency since it is difficult to trace or reverse. Additionally, scammers can leverage its complexity to further take advantage of their victims through their lack of understanding.
2. Romance Scams – A scammer tricks you into believing you are in a romantic relationship with them over time. Once the relationship is established, the scammer takes advantage of your affection and asks for money for various purposes. Watch out for excuses to avoid meeting, fast moving relationships, and urgent events requiring money.
3. Online Shopping Scams – These scams involve illegitimate sellers stealing your payment information and money under the guise of an online retailer. Look out for deals that appear too good to be true, bad reviews, and new retailers with little history or terms and conditions.
Keep in mind that scammers play on people’s emotions by creating a sense of urgency, love, fear, confusion, or sympathy. Social media and chat apps provide the perfect means for scammers to do so while concealing their identities. Do not engage with these individuals, be weary of unusual or very specific payment methods, and never send cash in the mail.
If you believe you have fallen for a scam, please contact Northwest at 703-709-8900 as soon as possible. Our Fraud Mitigation team will assist you in attempting to recover available funds and taking the next steps to further protect your accounts.