Instagram and Facebook users reported the most scams in 2022, while TikTok and LinkedIn were associated with the highest losses per victim.
This data was obtained through a Freedom of Information request to Action Fraud by the comparison site Good Money Guide.
Read on to find out how much victims lost on popular social media platforms and for our top tips on avoiding investment scams.
Social media sites and investment scams
Action Fraud's data shows that the number of reported investment scams relating to social media platforms has trebled since 2019, and total losses have risen from £13m to £75 million.
Instagram users reported the most investment scams in 2022 (1,857) followed by Facebook (1,193). These two Meta-owned brands were also the worst social media platforms in terms of total losses from 2019 to 2021. For losses per report, the worst sites in 2022 were TikTok (£138,472) and LinkedIn (£77,428).
Victims aged 20-29 and 30-39 were most likely to report investment scams relating to social media, accounting for 32% and 25% of reports respectively.
Investment fraud on social media in 2022
Underreporting of fraud
Richard Berry, founder of the Good Money Guide, says: 'It’s time that the platforms took a long hard look at the material they’re allowing online, as too often they are being used as a hunting ground by scammers preying on the unwary.
'Criminals often go to great lengths to make their scams look credible, sometimes even "cloning" legitimate investment platforms. These will typically look almost identical to the real thing, apart from a small difference in the URL.
'Needless to say when unsuspecting investors deposit funds on one of these fake websites, they never see them again.'
Social media sites must tackle fraud
After two years of Which? campaigning, the Online Safety Bill became law in October 2023, marking a major step towards a safer internet for UK consumers.
Under this new legislation, platforms such as Facebook, Google and Instagram will be legally obligated to remove harmful content, which includes scams.
Which? is calling on Ofcom to develop codes of practice that will hold platforms to a high standard and be prepared to take strong enforcement action, including fines, if they break the law.
Find out more:How to avoid investment scams
Scammers often target victims on social media using fake adverts, bogus celebrity endorsements, and by sending direct messages about ‘get rich quick’ schemes. They may set up convincing websites and social media profiles featuring dodgy reviews and slick brochures to appear legitimate.
If you see an advert for an investment online or receive an unsolicited offer directly, follow our five tips to avoid being scammed.
Ignore unexpected offers.Check the FCA warning list.Check the Financial Services Register. Consider getting independent financial advice or guidance.Be careful with your personal data.source https://www.which.co.uk/news/article/75m-a-year-is-lost-to-investment-fraud-on-social-media-ag8ul8d2IZso