FTC Highlights Surge in Social Media Fraud, Urges Legal and Market Reforms
The Federal Trade Commission (FTC) has released new findings indicating a significant rise in fraud originating from social media platforms. In 2025, consumers reported $2.1 billion in losses from scams initiated on these platforms, marking an eightfold increase since 2020. The FTC's data spotlight reveals that nearly 30% of scam victims reported that the fraud began on social media, with Facebook-related losses surpassing those from text and email scams combined. Investment scams accounted for the largest share of reported losses, totaling $1.1 billion. The FTC also took action against Steven and Gina Merritt for allegedly using false earnings claims to recruit participants into a multilevel marketing scheme. Additionally, the FTC, alongside the Department of Justice, urged the Tennessee Supreme Court to reconsider its reliance on ABA accreditation for law schools, arguing it limits competition and increases legal education costs. 
