Social media scams: Instagram sees impersonation fraud grow 155% in a year

Fraudsters are increasingly targeting social media favourite Instagram, according to data from Lloyds Bank.  

It found that impersonation scams on the popular app soared 155 per cent in the past 12 months, compared to the previous year.  

These scams almost always involve fraudsters sending a request for money via the platform, often claiming to be a family member or friend using a different phone, claiming theirs has been lost or damaged.

Insta scam: Impersonation scams almost always involve fraudsters sending a request for money via the platform.

The uplift in Instagram impersonation scams is in contrast with a fall in these types of scams reported on Facebook and Snapchat, according to Lloyds.

The number of these scams reported on Snapchat was down 84 per cent in the past 12 months, whilst Facebook scams were also down 54 per cent, suggesting Instagram may be becoming the new impersonation scam battleground.

However, while fraudsters on Instagram appears to be a growing phenomenon, Facebook and Snapchat fraud appears to be more costly for victims.

The average Instagram scam resulted in a loss of £336 compared to £504 on Facebook and £602 on Snapchat.

One such case reported to Lloyds came from Michelle. She was contacted on Instagram by someone who said they worked at her local church.

The message said that the church was trying to set up a charity abroad and needed some money to help with the set up.

Michelle believed that the message was genuine as a link was provided to a page which had photos of people who worked at her church on it.

Michelle was asked to send money to the current account of someone she was told was the representative of the charity in the UK.

She made three payments, totalling £500, before the church was alerted to the scam and got in touch with parishioners to let them know. 

Money down the drain:  The average Instagram scam resulted in a loss of £336.

Liz Ziegler, fraud prevention director at Lloyds Bank, said: ‘Social media is now intimately woven into our lives – it’s how we stay in touch with people, see what’s in the news, treat ourselves to something new and keep up with influencers.

‘Sophisticated organised criminal gangs know this, and are ready to adapt their deceptive methods instantly, lurking around every virtual corner to try and part you from your hard earned cash.’

‘These nasty impersonation scams target people’s natural desire to help family and friends as, instead of impersonating the police or the taxman, fraudsters are creeping closer to home and pretending to be those dearest to you.

‘When using social media we should all remain guarded, be vigilant against fraud attempts, and remember that if something seems fishy – you’re probably right.’  

Instagram assured us that when people are scammed on the site, it takes action. 

It said: ‘Accounts that impersonate someone else are against our Community Guidelines and we remove them when brought to our attention. 

‘We have over 40,000 people working on safety and security, including over 15,000 dedicated content reviewers, and use a combination of proactive detection technology and reports from our community to find and remove content that violates our policies.’ 

Not all social media fraud is an impersonation scams

While the Lloyds data relates to a growth in impersonation scams, fraud on social media can come in various guises.

Fraudsters use social media platforms to advertise products or services that either don’t exist or are fake.

These purchase scams often include designer trainers and in-demand games consoles.

The seller will ask for payment via bank transfer, then block the buyer as soon as the money arrives.

There are also scam adverts to coax people into investing, often offering very high rates of return. The companies either don’t exist or the rates are unachievable.

Fraudsters often use the names, logos and descriptions of real firms to lull victims into a false sense of security.

An Instagram spokesperson added: ‘It’s against our policies to promote or facilitate investment of financial scams, including loan scams, advance fee scams or scams which promise high rates of returns. 

‘When we identify this kind of activity we take action – removing content, rejecting ads and disabling ad accounts as necessary.’

They will typically ask for information including ID and proof of address from the victim before taking any cash, to further create the appearance of a real investment.

Romance scams are also common across social media sites.

Here fraudsters contact people over social media, building up a romantic rapport over time, so that victims feel an emotional bond and are more likely to provide money when it is inevitably requested.

Scammers give increasingly fantastical reasons for needing money and being unable to pay it back, with endless excuses as to why they cannot meet in person.

This post first appeared on Dailymail.co.uk