Why Social Media Is Still Packed With Scam Ads, and How to Spot One

Social media platforms have become a fertile ground for scam ads, exploiting the massive user base with legitimate services and marketing tools. Despite efforts to curb fraudulent activities, scam ads continue to thrive. Here’s why that’s happening and how to spot them.

Social media platforms are ripe for scam ads because they provide an ideal environment for fraudsters. With billions of users sharing personal details online, scammers can easily target specific demographics using sophisticated ad tools. Social media platforms also allow anyone to create an account and start advertising with minimal verification, making it easy for scammers to create and distribute fake ads quickly.

According to the Federal Trade Commission, social media scams resulted in losses exceeding $2.7 billion in 2023 alone. These fraudulent schemes exploit legitimate marketing tools provided by social media platforms, leveraging their algorithms to amplify the reach of scam ads to vast numbers of users. It ultimately becomes a number game—the more people exposed to these deceptive ads, the higher the likelihood that some will fall victim and lose their money.

How Do Scam Ads Get Past Review?

Despite having policies in place to prevent fraudulent ads, social media platforms often struggle to enforce them effectively. Scam ads can bypass reviews through a combination of tactics including:

• Exploiting Loopholes: Some scammers exploit the platforms’ own ad creation tools, using them to mimic legitimate businesses or products. By creating ads that look professional and trustworthy, they can deceive both the platform’s review system and potential victims.
• Too Many Ads to Moderate: Social media platforms host millions of ads every day. The sheer volume makes it challenging for human moderators and automated systems to catch every scam. Even with sophisticated algorithms, some deceptive ads slip through due to the sheer number of submissions.
• Layers Between Ad Placers and Social Media Companies: Many ads on social media are placed through intermediaries like advertising agencies or third-party platforms. These layers create distance between the actual advertiser and the social media company, making it harder to trace the origin of a scam ad.
• Scam Ads Made to Look Legitimate: Scam ads often mimic well-known brands by using familiar logos, color schemes, fonts, etc. Moderators might have difficulty judging an ad if they don’t fully understand the context or the cultural nuances behind it. For example, an ad might seem normal to someone unfamiliar with a particular product, but to a savvy user, it might be an obvious scam.
• AI Deepfakes Complicate Moderation: The rise of AI-generated content, including deepfakes, has added another layer of complexity. Scammers use AI to create realistic but fake videos, images, and even voices that can fool both users and moderation systems. These tools make it easier for scammers to produce high-quality, convincing ads that are difficult to distinguish from genuine content.
• Constant Adaptation: Scammers frequently change their ad content, making it difficult for automated systems to detect patterns. They might use slightly altered images or text to evade filters designed to catch known scams.
• Localized Targeting: Scammers may target specific regions or smaller groups where ad review policies might be less stringent, increasing their chances of slipping through unnoticed.

Recognizing scam ads is crucial for protecting yourself on social media. Efforts to moderate ads often fail because there are simply too many ads to moderate. It’s a good thing you don’t have this problem. Checking if an ad is legit or a scam only needs a few seconds of your time. Here’s how you can verify.

1. Suspicious Prices

When looking at an ad, check if the price is right. One common red flag is too-good-to-be-true offers—ads that promise huge discounts or free products are often scams. If something seems unrealistically generous, it likely is. If you aren’t aware of the typical price range of a product, you can always verify it with your favorite online shop.

2. Unverified Posters

Another dead give away is that scam ads are often posted by unverified accounts or pages. Most social media platforms today provide some form of verification badge. This is often in the form of a blue checkmark beside the poster’s name. If a brand is particularly popular, a verification badge should be expected.

3. Fake Endorsements

Scammers also use fake endorsements, falsely claiming support from celebrities or reputable organizations. Always verify such endorsements through official channels. Additionally, suspicious URLs are a giveaway. Scammers often create URLs that closely mimic legitimate websites but include slight misspellings or extra characters.

4. Poor Grammar

Poor grammar and spelling in an ad are also big warning signs, as many scams are hastily put together. Legitimate ads are typically made and posted by professionals and have gone through grammar and spelling checks.

5. Negative Reviews

Finally, check the comments and reviews. If you see complaints or warnings from other users, it’s often a clear indicator of a scam. You may also see fake reviews. If the ad is already laden with red flags and the comments are excessively positive, you’re likely looking at a scam ad.

What to Do When You Encounter a Scam Ad

If you come across a scam ad, here’s a step-by-step on what you should do:

1. Report the Ad: Most platforms have an option to report ads. Doing so can help the platform take action against the scammer and prevent others from being victimized.
2. Avoid Engagement: Don’t click on the ad or any associated links. Even interacting with the ad can redirect you to a phishing site or further expose you to even more scams.
3. Educate Others: Share your experience with friends and family to make them aware of the scam. The more people who know about it, the less effective the scam will be.
4. Review Your Privacy Settings: Limiting the information you share on social media can make it harder for scammers to target you with personalized ads.

Staying informed and vigilant is the best defense against social media scams. By understanding how these scams operate and taking steps to protect yourself, you can navigate social media with greater confidence.