Answer: investment scams accounted for 37% of fraud losses (in $s)  on social media while online shopping had the largest number of loss reports. 

Questions:

• Have you ever noticed a scam while you were on social media? What was it?
• How can you tell whether something on social media is valid or a fraud?
• Are you surprised that 18-39 year olds are twice as likely to be a victim of fraud compared to older Americans? Why or why not?

Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (FTC): 

While investment and romance scams top the list on dollars lost, the largest number of reports came from people who said they were scammed trying to buy something they saw marketed on social media In fact, 45% of reports of money lost to social media scams in 2021 were about online shopping. In nearly 70% of these reports, people said they placed an order, usually after seeing an ad, but never got the merchandise. Some reports even described ads that impersonated real online retailers that drove people to lookalike websites. When people identified a specific social media platform in their reports of undelivered goods, nearly 9 out of 10 named Facebook or Instagram...Reports are up for every age group, but people 18 to 39 were more than twice as likely as older adults to report losing money to these scams in 2021.

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Play the Terms and Conditions game in the NGPF Arcade to see how well you can avoid giving up your private information. 

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Wondering how to inoculate your students against online fraud? Check out the NGPF resources that can help. 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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