How to Recognize and Avoid Fraudulent Social Media Ads

Fraudulent ads are an increasingly common part of the social media browsing experience, exploiting the huge user base with legitimate services and marketing tools. Despite efforts to curb them, these ads still find their way onto screens. Knowing the telltale signs of these ads and how to spot them quickly can save you a lot of trouble and protect you from falling into the scam traps. Here’s why they happen and how to spot them. Check out What is FraudGPT? And How to Protect Yourself from a Dangerous Chatbot?

Why are fraudulent ads prevalent on social media platforms?

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

According to To the Federal Trade CommissionSocial media scams resulted in losses of over $2.7 billion in 2023 alone. These fraudulent schemes exploit legitimate marketing tools provided by social media platforms, and leverage their algorithms to amplify the reach of fraudulent ads to large numbers of users. Ultimately, it’s a numbers game — the more people exposed to these deceptive ads, the more likely they are to fall victim and lose money.

How do fraudulent ads get past review and verification?

Although there are policies in place to prevent fraudulent ads, social media platforms often struggle to enforce them effectively. Fraudulent ads can bypass reviews through a range of tactics including:

1. exploiting vulnerabilitiesSome scammers take advantage of platforms’ ad creation tools, using them to imitate legitimate companies or products. By creating ads that look professional and trustworthy, they can fool the platform’s review system and potential victims.
2. Too many ads to editSocial media platforms host millions of ads every day. The sheer volume makes it difficult for human moderators and automated systems to spot every scam. Even with sophisticated algorithms, some deceptive ads slip through due to the sheer number of shares.
3. The multiple layers between advertisers and social media companiesMany ads on social media are placed through intermediaries such as advertising agencies or third-party platforms. These layers create a distance between the actual advertiser and the social media company, making it difficult to trace the origin of a fraudulent ad.
4. Fraudulent ads designed to look legitimate: Fraudulent ads often mimic well-known brands using familiar logos, color schemes, fonts, etc. Moderators may have difficulty judging an ad if they don’t fully understand the context or cultural nuances behind it. For example, an ad may look normal to someone unfamiliar with a particular product, but to a savvy user, it could be an obvious scam.
5. AI-Powered Deepfakes Complicate OversightThe emergence of AI-generated content, including deepfakes, has added another layer of complexity. Fraudsters are using 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 fraudsters to produce high-quality, convincing ads that are difficult to distinguish from genuine content. Find out whether humans or AI are better at spotting deepfake technology.
6. Continuous adaptation: Fraudsters frequently change the content of their ads, making it difficult for automated systems to detect patterns. They may use slightly modified images or text to evade filters designed to catch known fraud.
7. Local targetingScammers may target specific regions or smaller groups where ad review policies may be less stringent, increasing their chances of slipping in unnoticed.

How to Spot Social Media Scams

Recognizing scam ads is crucial to protecting yourself on social media. Ad moderation efforts often fail because there are simply too many ads to be edited. It’s a good thing you don’t have to face this problem. It only takes a few seconds of your time to check if an ad is legitimate or a scam. Here’s how to check.

1. Suspicious prices

When looking at any ad, check to see if the price is right. A common warning sign is too-good-to-be-true deals — ads that promise huge discounts or free products are often scams. If something seems unrealistically generous, it probably is. If you’re not familiar with a product’s typical price range, you can always check with your favorite online store.

2. Unreliable labels

Another clue that scam ads are often posted by untrustworthy accounts or pages is that most social media platforms today offer some form of verification badge. This is often a blue checkmark next to the poster’s name. If the brand is particularly popular, a verification badge should be expected.

3. Fake endorsements

Scammers also use fake endorsements, falsely claiming to be supported by celebrities or reputable organizations. Always check these endorsements through official channels. Additionally, suspicious URLs are a sign of this. Scammers often create URLs that closely mimic legitimate websites but include minor typos or extra characters.

4. Poor grammar

Poor grammar and spelling in the ad are also big red flags, as many scams are hastily put together. Legitimate ads are usually created and posted by professionals and have been checked for grammar and spelling.

5. Negative reviews

Finally, check the comments and reviews. If you see complaints or warnings from other users, this is often a clear sign of a scam. You may also see fake reviews. If the ad is already loaded with warnings and the reviews are overly positive, you are likely looking at a scam ad. Check out What is the no-font tactic in email phishing scams?

What to do when you encounter a fraudulent ad

If you come across a fraudulent ad, here's a step-by-step guide on what to do:

1. Report AdMost platforms have an option to report ads. Doing so can help the platform take action against the scammer and prevent others from falling victim.
2. Avoid sharing: Do not click on the ad or any links associated with it. Even interacting with the ad may redirect you to a phishing site or expose you to further scams.
3. Educate othersShare 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.Restricting the information you share on social media can make it harder for scammers to target you with personalized ads.

Staying informed and vigilant is your best defense against social media scams. By understanding how these scams work and taking steps to protect yourself, you can navigate social media with greater confidence. Now, see how your face is being used in scams: How can you protect yourself?