Financial scam artists moving to social media in 2024

SALT LAKE CITY — If you noticed more ads on your social media feeds this year, you are not alone.

And if you fell victim to one of the many financial scams those ads hide from unsuspecting scrollers, you definitely are not alone.

The Federal Bureau of Investigation and the Federal Trade Commission reported they received approximately 880,000 complaints of cyber fraud in 2023 and expect to see more in 2024. During the same year, online scammers stole a total of $12.5 billion from innocent consumers, according to the FTC, more than the value of the Dallas Cowboys.

Utahns of all ages have as great a possibility of being scammed as anyone in another state. You will not be romanced via email by a prince, however. These scams appear much more realistic than in the past.

“We always see an increase in online scams during the holidays, and they are getting more and more sophisticated,” said Melani Fox, director of communication for the Better Business Bureau of Salt Lake City. “Anyone can be a victim of a scam. Anyone can be targeted. We never want anyone to feel like you’re dumb for falling for any of them. They are hard to see.”

Case in point: A current social media scam hitting phones and desktops alike comes just in time for holiday shopping. The company offers personalized shirts, sweatshirts, T-shirts, and more with pictures of family members, pets, and favorite mountains to hand out to your loved ones on Christmas morning. The advertisement appears on Facebook, Instagram, and TikTok, looking as smooth and glossy as any department store’s advertisements.

Once you place your order, it takes longer than expected for your package to arrive, if it arrives at all. If it does come, you will open a box of fabric, or misspelled, dirty items with stains and other markings. What makes this advertisement so effective is that you are provided a customer service number when you place your order to contact if there are any problems.

You call the number, and the person on the other line apologizes for the delay. You call again, and this time the number is no longer in service.

Despite the frustrations and genuine financial problems that come with falling for this type of scam, it may be better to know you are not alone in experiencing any of this.

“I don’t want people to feel afraid. I want them to be cautious,” said Katie Hass, director of the Division of Consumer Protection. She has also been the victim of an online scam. “You need to educate yourself on how scammers move. We all need to be a little more cautious and ask questions.”

Hass referred to people being a “WISE” consumer, an acronym with W for “watch out for red flags”; I for “investigate” the company claiming to sell things online; S for “setting boundaries,” as in deciding how much you will spend beforehand, not succumbing to pressure to sign up right now; and E for “examine” everything the company is saying.

Consumer advocacy groups remind shoppers that one reason scammers are so successful this time of year is that shoppers are not paying attention. They have so much on their minds. For that reason, it becomes more important to practice being a WISE shopper and be accustomed to analyzing any advertisement that comes your way.

“We think this can be preventable. … There are tips of what you can do when you’re shopping that can help,” Fox said. “You can always come to us with any questions and use the bureau’s Scam Tracker to see what scams are out there.”

How to avoid social media ad scams

1. Research the company before making a purchase. Before entering any personal information into a website, research the company thoroughly. A real business should have valid contact information (i.e., a working phone number and customer service email address). If the business has a physical address, research it on Google or Apple Maps. Look to see if it has a profile on BBB.org.
2. Be skeptical of too-good-to-be-true ads. Ads promising extreme discounts, free products, or “limited-time offers” may be bait to lure you into a scam.
3. Inspect the ad and website. Look for red flags: Poor grammar, blurry images, or generic product descriptions can indicate a scam. You should also verify the URL. Scammers often create fake websites with slightly misspelled domain names. Also, check for HTTPS. Ensure the website URL starts with “https://” for secure transactions.
4. Look up reviews on other websites. Read as many reviews as possible from websites besides the company selling the product. Keep a close eye out for customer complaints. Search the business name in a trusted search engine to see if others have reported the business as fraudulent.
5. Beware of “sponsored” ads. Just because an ad is labeled “sponsored” doesn’t mean it’s legitimate. Social media platforms don’t always verify the authenticity of advertisers.
6. Pay with a credit card. Ideally, use a credit card instead of a debit card since it’s easier to dispute fraudulent charges with a credit card, and there is a better chance of getting a refund.