A disabled veteran lost $172,000 in a social media scam, highlighting a growing trend of financial fraud. Craig Wilkinson told ABC News he was targeted through a Facebook ad impersonating a legitimate financial firm, leading to a WhatsApp group where scammers posed as mentors. The Federal Trade Commission (FTC) reports that social media fraud cost Americans $2.1 billion in 2025, an eightfold increase since 2020. Nearly 30% of reported scams began on social platforms, surpassing other channels like email or text.
Scammers exploit personal data to tailor fraud attempts, using ads and fake profiles to target individuals. Emma Fletcher, a senior FTC analyst, noted that social media allows fraudsters to customize scams based on users' interests and habits. The Manhattan District Attorney’s Office has called for platforms like Facebook and WhatsApp to remove fraudulent accounts.
The FTC warns that scams are becoming more sophisticated, with fraudsters using dynamic, personalized approaches rather than generic scripts. Victims often fall prey after engaging with seemingly legitimate investment opportunities or mentorship programs. The surge in social media fraud underscores the need for heightened vigilance and regulatory action.