$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
influencer promotion scam
Influencers promote fraudulent products, services, or investment schemes to their followers without disclosing they are being paid, or without verifying what they are promoting is legitimate.
“social media scam”
↑ 470%Key indicators
Usually targetsSocial media users
Often hitsTech workers and developers
Common regionUnited States
Last updated2026-04-04
Estimated impact
$600
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Annual reports95,000
Scam breakdown
1
Scam companies pay influencers to promote their products or investment platforms, often without requiring the influencer to verify legitimacy
2
Followers trust the influencer's recommendation and purchase the product or invest in the platform
3
The product turns out to be a scam, and the influencer may claim ignorance or delete the promotional content
What to do first
Research any product or investment independently before purchasing, regardless of who promotes it
Related terms
paid promotion fraudundisclosed sponsorship scaminfluencer shillSocial media scamsInstagramSurgingSocial media usersYoung adultsContent creatorsTech workers and developersCreators and online sellersReal estate professionals and homebuyersUnited StatesUnited KingdomAustraliapaid promotion fraudundisclosed sponsorship scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Lisa, 35, a social media users, encountered what appeared to be a legitimate social media scams situation while using Instagram. Scam companies pay influencers to promote their products or investment platforms, often without requiring the influencer to verify legitimacy
Step 2
What happened next was calculated: Followers trust the influencer's recommendation and purchase the product or invest in the platform
Step 3
The pressure escalated quickly: The product turns out to be a scam, and the influencer may claim ignorance or delete the promotional content
The outcome
Lisa realized something was wrong when influencer promotes a product or investment without using required disclosure labels like #ad or #sponsored. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Research any product or investment independently before purchasing, regardless of who promotes it Lisa's experience shows why influencer promotes a product or investment without using required disclosure labels like #ad or #sponsored and the promoted product or service has no verifiable track record, reviews, or regulatory registration are the clearest early warning signs.
How to identify it
- Influencer promotes a product or investment without using required disclosure labels like #ad or #sponsored
- The promoted product or service has no verifiable track record, reviews, or regulatory registration
- Multiple influencers all promote the same obscure product or service within a short time window
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Research any product or investment independently before purchasing, regardless of who promotes it
- ✓Look for FTC-required disclosure labels — their absence suggests the recommendation may not be trustworthy
- ✓Report undisclosed paid promotions to the FTC and the social media platform
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The FTC has taken enforcement action against influencers and companies for undisclosed paid promotions, and the SEC has charged celebrities for promoting unregistered crypto securities
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Research any product or investment independently before purchasing, regardless of who promotes it
- ✓Look for FTC-required disclosure labels — their absence suggests the recommendation may not be trustworthy
- ✓Report undisclosed paid promotions to the FTC and the social media platform
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The FTC has taken enforcement action against influencers and companies for undisclosed paid promotions, and the SEC has charged celebrities for promoting unregistered crypto securities
FTC Consumer Sentinel 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Social media users, Young adults, Content creators
Geographic concentration
United States, United Kingdom, Australia, Canada
Primary channel
Instagram — Social media scams
Why this group is vulnerable
Social media users are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The FTC has taken enforcement action against influencers and companies for undisclosed paid promotions, and the SEC has charged celebrities for promoting unregistered crypto securities
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about influencer promotion scam
How does the influencer promotion scam work?+
Scam companies pay influencers to promote their products or investment platforms, often without requiring the influencer to verify legitimacy Followers trust the influencer's recommendation and purchase the product or invest in the platform The product turns out to be a scam, and the influencer may claim ignorance or delete the promotional content
What are the warning signs of influencer promotion scam?+
Influencer promotes a product or investment without using required disclosure labels like #ad or #sponsored The promoted product or service has no verifiable track record, reviews, or regulatory registration Multiple influencers all promote the same obscure product or service within a short time window
What should I do if I encounter influencer promotion scam?+
Research any product or investment independently before purchasing, regardless of who promotes it Look for FTC-required disclosure labels — their absence suggests the recommendation may not be trustworthy Report undisclosed paid promotions to the FTC and the social media platform
Who is most at risk for influencer promotion scam?+
This scam primarily targets Social media users, Young adults, Content creators. It is most commonly reported in United States, United Kingdom, Australia, Canada and typically appears on Instagram.
Is influencer promotion scam getting worse?+
influencer promotion scam is currently surging — reports are increasing rapidly. It has been reported across US, UK, AU, CA. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.