Social Media Fraud: How To Protect Yourself From Fake Accounts And Scams On Popular Platforms

The Popularity Of Social Media Has Attracted Fraudsters And Scammers. Staying Vigilant Is The Key To Staying Protected.

Social media fraud has become a significant problem in today’s digital age, as criminals are finding new and sophisticated ways to exploit these networks for financial gain.

Social media platforms, such as Facebook, Twitter, and LinkedIn, have created a global community that allows for the exchange of information, ideas, and connections among individuals and businesses. However, this increased connectivity and access to personal information have also created opportunities for fraudulent activities. This article dives into the various forms of social media fraud, its impact on individuals and businesses, and strategies to protect against it.

One of the most common forms of social media fraud is phishing. Criminals use social media platforms to send fraudulent messages, often posing as legitimate organizations or individuals, in an attempt to trick people into revealing personal or financial information. They use this information to commit identity theft or steal money.

According to a report by the Anti-Phishing Working Group (APWG), phishing attacks on social media platforms have grown by more than 600% in the past two years, with social media phishing attacks becoming more sophisticated and difficult to detect.

The report also noted that most phishing attacks on social media are directed at businesses, but individuals are also at risk.

Phishing attacks on social media are also highly effective, with a study by APWG showing that 1 in every 99 emails sent is a phishing attack, and 1 in every 22 emails sent via social media is a phishing attack.

Another form of social media fraud is the use of fake accounts. Criminals create fake profiles, posing as real people, to scam individuals and businesses. They use these profiles to build trust and then ask for money, personal information, or goods in return.

Fake accounts can also be used to spread malware or disinformation, furthering their fraudulent scheme. According to a study by the University of California, San Diego, around 15% of active Twitter accounts are bots, with many of them being used for fraudulent activities.

The use of fake accounts can be particularly dangerous for businesses, as they can be used to impersonate a company or one of its employees, potentially leading to financial loss or reputational damage.

Social media fraud also takes the form of impersonation or “catfishing”, where criminals create a false identity to trick people into a romantic or financial relationship.

The Federal Bureau of Investigation (FBI) warns that these types of fraud often target vulnerable individuals, such as the elderly, and can result in significant financial losses. Additionally, fraudsters may use these fake identities to gain access to victims’ personal information, and use it for additional fraudulent activities.

The impact of social media fraud can be devastating for individuals and businesses. Victims may lose money, have their personal information compromised, or suffer from emotional distress. Businesses can suffer from loss of reputation and revenue and may have to invest significant resources in fraud prevention and recovery.

According to a study by Javelin Strategy & Research, the overall cost of identity fraud in the United States rose by 16% to $16.9 billion in 2017, with social media being one of the most common ways for fraudsters to obtain personal information.

To protect against social media fraud, individuals and businesses should take several steps.

• Staying vigilant of what individuals share on social media — Social media tracking is extremely common based on the information individuals share. People should think from a fraudster's or a stalker’s perspective and try to understand how the information they intend on sharing can be misused, and then either stay away from sharing or limit the reach.
• Using two-factor authentication — At a bare minimum, individuals should set up two-factor authentication on all their key social media accounts so that the account cannot be accessed by fraudsters even if they got access to the individual’s username and password.
• Being suspicious of unsolicited messages and requests — Individuals should always be suspicious of any message or request received from unknown people on social media. Requests that require purchasing gift cards, or sharing email addresses or phone numbers should immediately strike as suspicious.
• Setting up account alerts — Setting up account alerts is crucial to know whether an account takeover attempt has taken place. Alerts that inform individuals whether a login attempt has occurred from a location not frequently, or ever, visited by the individual or using a device that doesn’t belong to the individual are key to preventing account takeovers. Immediate action should be to change the password.
• Tweaking the privacy settings on social media accounts — The social media privacy settings should be set to share information with only people individuals trust. Meta, for example, allows the information being shared to be limited within friends.