Bogus cryptocurrency investments led to an unprecedented increase in online scams last year, according to new data from the Federal Trade Commission (FTC).
Why it matters: Cryptocurrency is an easy target because while it’s surging in popularity, there’s still a lot of confusion about how it works.
By the numbers: Investment-related scams on social media represented 37% of all reported losses, followed by romance scams and online shopping scams.
Yes, but: While investment scams are by far the most costly for consumers, they aren’t the most common. The greatest volume of complaints filed to the FCC came from rackets related to online shopping.
The big picture: Fraud cases from social media now account for roughly 25% of all fraud cases in the U.S., up 18x from 2017.
Between the lines: The FTC highlighted the role Facebook and Instagram play in social media fraud, noting that more than a third of people who reported losing money to an online romance scam said it began on one of those platforms.
What to watch: The FTC, which regulates advertising, noted in its report that cheap, targeted ads on social media make it easier for fraudsters to hyper-target victims using information like their interests or past purchases.
Editor’s note: This story was first published on Jan. 27. It has been updated to include a comment from Meta.
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