Social media scams: Who’s really following you?

Losses to social media scams reached $95 million in calendar year 2023, an increase of 19% compared with the $80 million lost in 2022. 

This figure had been increasing dramatically, up from reported losses of $56 million in 2021 and $27 million in 2020. 

In the December quarter last year alone, reported scams originating on social cost Australians $15.9 million.  

All age groups report being affected by scams. However, the likelihood that people could be targeted on social networks appears to increase for older Australians. 

Those aged over 65 experienced the highest losses of any age group to cybercrime originating on social networks, reporting 30% of all such incidents.  

This represents a 57% increase compared with the previous quarter for this age group. 

People in this age bracket were also most affected by investment scams, as well as dating and romance scams.  

Scams that start on social networks can take many forms.  

Many of those who were contacted on social media report that they were targeted with an ad, a post, or a message on an online forum.  

According to the Australian Competition and Consumer Commission (ACCC), some people reported placing an order after seeing an ad, but never receiving their goods. Others reported seeing advertisements that appeared to be from a real, online retailer.  

The biggest proportion of losses came from contact that originated via WhatsApp (47% of losses) and Facebook (20%), according to the ACCC). This was followed by Instagram (9%), as well as online dating sites (9%). 

Scammers have also been known to use social media to create fake news stories, sometimes featuring well-known celebrities who appeared to endorse investment opportunities.  

In some cases, people were followed up with personalised, highly professional-looking communications that appeared to be legitimate.   

Dating sites may also be involved. After pretending to be a real person who wants a relationship with you, often over many weeks or months, a scammer may ask you to invest your money or cryptocurrency in 'opportunities' that turn out to be fake. 

In many cases, scammers use personal, highly sensitive data to trick people into making fraudulent online payments. 

In one example reported to the ACCC, people received a friend request on Facebook featuring an actual funeral notice that had originally been shared by a legitimate account. 

They were asked to help the bereaved family pay for a live stream of the funeral by making a credit card payment to a funeral streaming account. 

Remember, CFS will never send you an email asking for your bank or account details. 

The CFS Staying safe online hub contains more tips and resources to help you avoid scams, such as:  

• If you think a phone call sounds suspicious, hang up 
• Never share passwords or personal information, especially with someone you don’t know 
• Don’t open SMS or email links or attachments unless you know who they’re from 
• Protect your computer with antivirus software 
• Don’t send money or personal details to people from unusual locations 
• Don't accept a message or friend request on social media from someone you don't know 
• Be wary of unexpected contact, particularly if you’ve replied to something online 
• Do your own checks on any investment opportunity to make sure it's real 
• Beware of promises of low risks with high returns 
• Consider seeking independent financial advice before you invest 
• Check your bank account and statements regularly to watch out for unusual activity. 

More information and recommendations for safe social media use are available at the Australian Cyber Security Centre. 

CFS works hard to prevent members from being targeted by scammers. If we become aware of any scams that may affect our members, information will be provided at the top of our Contact Us page.