Social media scams have been increasing, with victims losing more than just funds.

Scamming attempts are a common occurrence today, but they may take forms that people aren't expecting. Social media scams continue to cause problems for both consumers and enterprises today. While businesses recognize the need to leverage social media as a sales tool and connect with customers, the problems that come with it can be too overwhelming for them.

Each social media platform offers a unique place to interact with friends, family, and sometimes strangers. Although these platforms allow us to connect with others, they can also pose a threat if we aren't cautious. There are many scammers on these social media channels. Both individuals and businesses have lost over US$100 billion due to internet fraud. In 2017, the Better Business Bureau reported 45,811 scams in the U.S., and in 2018 that number rose to 48,369 scams.

Over the years, social media scams have been increasing, with victims losing more than just funds. In fact, researchers from Group-IB see that the scam industry is becoming more structured and involves more and more parties divided into hierarchical groups. The number of such groups jumped to a record high of 390, which is 3.5 times more than last year when the maximum number of active groups was close to 110.

In the Asia Pacific region, according to the Group-IB Digital Risk Protection team's findings, social media became the number one channel for the distribution of scams – 75.4% of all scams analyzed by Group-IB were observed in social media. Instagram turned out to be the scammers' favorite platform in APAC.

Here are some of the social media scams you should be aware of:

Lottery and free gift card scam

Oftentimes there are posts on social media claiming to give out free gift cards to popular stores like Starbucks, Target, and the Cheesecake Factory or announcing that you've won the lottery. When you click on them, you're taken to a site that asks you to enter your information to claim your winnings. The information they ask for may vary. They could ask for your phone number to secretly charge you data fees. A "lottery" post may require your banking information in order to wire you money, which they end up stealing from you instead.

Hidden Charges

"What type of STAR WARS character are you? Find out with our quiz! All of your friends have taken it!" Hmm, this sounds interesting, so you enter your info and cell number, as instructed. After a few minutes, a text turns up. It turns out you're more Yoda than Darth Vader. Well, that's interesting but not as much as your next month's cell bill will be. You've also just unwittingly subscribed to some dubious service that charges US$9.95 every month. As it turns out, that "free, fun service" is neither. Be wary of these bait-and-switch games. They tend to thrive on social sites.