Chat with Softimpact
+961 1 890 888
+961 1 890 999
Home
Profile
Services
WEB DESIGN & DEVELOPMENT
TAILOR MADE SOLUTIONS
SOCIAL MEDIA MARKETING
Mobile / TV Applications
THE WALL 360 CMS
WEB SERVICES
Cubix ERP/CRM
Portfolio
Recent
Websites
Mobile / TV Applications
Intranet Applications
Social Media
Branding
Facebook Applications
Highlights
1
Blogs
Clients
Quotation
Contact
FAQ
s
Careers
Menu
1
The rise of social media shopping scams targeting young adults
May 22, 2023
Scammers targeting money and credit-card details are increasingly exploiting young people through social media platforms.
In November, Jessica Longoria came across an advertisement for shoe-organizing boxes while scrolling through TikTok. The ad claimed that the clear plastic containers were on sale for a limited time. Intrigued, she visited the website and ordered a 36-pack for $45.
However, when the package arrived in late December, it contained only one large plastic bag. Frustrated, Ms. Longoria took to TikTok to express her disappointment. Several others also created TikTok videos alleging they were scammed by the same ad, resulting in a collective viewership of 32 million.
Despite attempting to contact the seller via the provided email address, Ms. Longoria received no response. Even our repeated email attempts and website visits were met with silence or an apparent offline status.
A TikTok spokesperson confirmed that the seller is no longer permitted to advertise on the platform, stating that TikTok removes content violating their community guidelines, advertising policies, or terms of service.
According to the Federal Trade Commission (FTC), online shopping is the most common type of fraud, with scams often originating from social media. Reported losses from social media fraud surged to over $1.2 billion in 2021, a significant increase from $42 million in 2017. For individuals aged 18 to 29, social media platforms accounted for nearly 40% of reported fraud losses last year, as per the FTC.
Christine Halvorsen, a managing director at Protiviti, a risk and compliance consulting firm, highlighted that "Gen Z has grown up with a phone or iPad in their hands," making them comfortable with online purchases and more trusting of such transactions.
In March, the FTC issued orders to major social media companies, including TikTok and Meta Platforms Inc. (the parent company of Facebook and Instagram), seeking information on their advertiser vetting processes. Both TikTok and Meta stated their cooperation with the FTC's order and emphasized that their existing safeguards catch the majority of threats.
Reflecting on her experience, Ms. Longoria admitted that she had not heard of the company advertising the shoeboxes. However, the video ads had appeared convincing. She managed to recover her $45 by filing a claim with Apple since she used her Apple Card for the purchase.
This incident taught her to approach ads on social media with greater skepticism. She stated, "I would definitely second-guess any kind of trendy ads on TikTok unless it's from a super verified, super well-known company."
While younger people tend to report lower monetary losses from scams compared to older adults, who are more susceptible to phone scams involving tech support, sweepstakes, or impersonations of friends and relatives, experts studying online fraud highlight that there is typically a larger scheme at play. Halvorsen noted that scammers using social media ads are often part of organized criminal enterprises focused on data theft rather than profiting from small purchases. They may utilize shoppers' credit card information to purchase gift cards or cryptocurrency or sell their credit card details, names, and addresses.
The FTC identifies online marketplaces as significant venues for shopping fraud. Elly Sloman's experience exemplifies this. She attempted to buy a PlayStation through Facebook Marketplace, where she found a PS4 Pro listed for $300. Despite feeling uneasy immediately after the purchase, she completed the transaction through Facebook Messenger using Meta Pay, the platform's payment system, tied to her debit card. Unfortunately, the seller blocked her on Facebook, rendering communication impossible. As per Facebook's purchase protection policy, disputed purchases made through Facebook Messenger or other messaging services, local pickups, or third-party sites are not covered. To request a refund, buyers must have tapped "Buy Now" on the listing.
Back To Blogs
POPULAR ARTICLES
January 9, 2025
Top 10 Programming Languages for 2025
January 27, 2025
OpenAI Unveils AI Agent 'Operator,' but Europe Will Have to Wait
January 30, 2025
What is DeepSeek, the Chinese AI Chatbot Disrupting the Tech Industry?
LET’S START A NEW PROJECT TOGETHER!
March 27, 2025
The Rising Impact of In-App Purchases on Mobile Apps and Consumer Spending
In-app purchases (IAPs) have become a significant revenue driver in the mobile app industry, reshaping the way users interact with digital content. With mobile applications ranging from gaming and entertainment to productivity and wellness,...
Read More
March 10, 2025
Google’s New AI Tool “Whisk” Uses Images Instead of Text for Generating Artwork
Google has introduced a new artificial intelligence tool called Whisk, allowing users to upload images to create AI-generated visualswithout needing to input any text.
Read More
January 30, 2025
What is DeepSeek, the Chinese AI Chatbot Disrupting the Tech Industry?
DeepSeek-R1, the latest in a series of cost-effective AI models developed with fewer chips, is emerging as a serious competitor to OpenAI, Google, and Meta. The Chinese AI research lab DeepSeek has taken the tech world by surprise with its advanced...
Read More
January 27, 2025
OpenAI Unveils AI Agent 'Operator,' but Europe Will Have to Wait
OpenAI has introduced its first AI agent, Operator, capable of tasks like online shopping and travel booking. However, the service is currently limited to the United States and is available only to ChatGPT Pro subscribers.
Read More
January 14, 2025
AI in Mobile App Technology 2025: Shaping the Future of Apps
By 2025, artificial intelligence (AI) will transform mobile app technology, enhancing user interactions with smarter, more personalized, and intuitive apps. AI will not only improve app functionality but revolutionize the entire mobile app...
Read More
Load More
Visit Our News