The news: Consumers lost $2.1 billion to social media scams last year, raising the stakes for platform safety and presenting challenges for brands advertising on social media.

• More than one-quarter (28%) of all people who lost money to a scam in 2025 said it started on social media, according to data from the Federal Trade Commission (FTC). That’s second only to websites or apps (31%).
• Consumers lost more money to scams that started on Facebook than on any other social platform, with WhatsApp and Instagram—also owned by Meta—coming in at a distant second and third.
• Over 40% of people who lost money to a social media scam said they ordered something they saw in an ad, including clothes, make up, car parts, and even puppies.

The bigger picture: Consumers frequently lump legitimate brands in with bad actors, meaning companies need to act quickly if their name is involved with fraudulent content. More than half (54%) of US consumers trust a brand less after encountering a scam related to it, even if the brand wasn’t directly at fault, per Clutch.

Even in a scam-free environment, the stakes are high to earn consumer trust, influence purchase decisions, and persuade shoppers to try a new product. A vast majority (84%) of purchases by global consumers worldwide are driven by preexisting brand bias, per WPP Media.

Recommendations for marketers: The high rate of scams presents a minefield for social media advertisers who must weigh the efficacy of social ads against rising risks to brand equity and conversion rates.

• Identify which platforms offer comprehensive safeguards to avoid appearing in risky environments and prioritize spend accordingly.
• Monitor for impersonators, enforce trademarks, and work directly with platforms on rapid takedowns for fraudulent content.
• Establish credibility with new customers in fragile trust environments with clear refund and return policies, complete company information on websites, and trust signals like customer reviews and secure payment options.

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