Social-Media Shopping Scams Are Growing. Young Adults Are the Targets.

In late December, a package from the shoebox advertiser finally came. It contained one large plastic bag.

Ms. Longoria, a 30-year-old esthetician in Fresno, Calif., posted her frustration on TikTok. Several other people also made TikToks alleging they were scammed by the same ad. Collectively, the videos have been viewed 32 million times.

Ms. Longoria found a contact email address on the seller’s website in December, but no one responded to her messages. We sent multiple emails to the same address, and no one responded. And when we tried repeatedly to visit the same website, it appeared to be offline.

A TikTok spokesman said the seller is no longer allowed to advertise on TikTok. 

“We have clear rules around advertising on TikTok and will remove content that breaches our community guidelines, advertising policies or terms of service,” the TikTok spokesman said.

The Federal Trade Commission said online shopping is the most common type of fraud, and scams often start on social media. Reported losses from social-media fraud reached more than $1.2 billion last year, up from $42 million in 2017. For adults ages 18 to 29, social media is by far the biggest starting point for fraud: Nearly 40% of the fraud loss reported by this age group in 2021 originated on a social-media site, said the FTC.

“Gen Z has grown up with a phone or iPad in their hands,” said Christine Halvorsen, a managing director at Protiviti, a risk and compliance consulting firm. “They’re very comfortable buying things online, and they’re very trusting of that.”

The FTC in March issued orders to the major social-media companies—including TikTok and Inc.,

The TikTok spokesman said ads pass through multiple levels of human and machine review before receiving approval.

Ms. Longoria said she hadn’t heard of the company advertising the shoeboxes but the video ads were convincing. Ms. Longoria filed a claim with , since she had paid with her Apple Card, and got her $45 back.

She said the experience taught her to be more leery of ads on social media. “I would definitely second-guess any kind of trendy ads on TikTok unless it’s from a super verified, super well-known company,” she said.

The amount of money younger people report losing to scams is much lower than it is for older adults, who are more likely to fall for scams by phone, involving tech support, sweepstakes or people posing as friends and relatives. The median individual fraud loss reported by people ages 18 to 59 was $500 in 2021, said the FTC. For people 80 and older, it was $1,500.

While the dollar amounts aren’t huge, there is usually a larger scheme at play, say experts who study online fraud. Ms. Halvorsen said scammers who place ads on social media are usually part of an organized criminal enterprise more focused on stealing data than making money from small purchases. Scammers often use shoppers’ credit-card information to buy gift cards or cryptocurrency; other times they sell consumers’ credit-card numbers, names and addresses.

Beware the internet bazaar

Online marketplaces are a key venue for shopping fraud, according to the FTC.

Elly Sloman wanted to buy a PlayStation in December and found a PS4 Pro on Facebook Marketplace for $300. It was the first time she had bought something on the site, and she said the seller instructed her to conduct the transaction through Facebook Messenger. She used Meta Pay, the social-media company’s payment system, to send funds. The payment was tied to her debit card.

“Immediately after I bought it, I had the feeling I had just done something stupid,” said Ms. Sloman, a 20-year-old college student in suburban Atlanta.

She followed up and saw the seller had blocked her on Facebook—she couldn’t message him. According to Facebook’s purchase-protection policy, disputed purchases aren’t covered if buyers conduct transactions through Facebook Messenger or other messaging services, local pickups or third-party sites. To request a refund, buyers need to have purchased the item by tapping Buy Now on the listing.

Ms. Sloman said the seller was supposed to ship the game console to her, but it never arrived. She said she reported the fraud to Facebook and her bank, but the purchase wasn’t covered because she had used a debit card.

“I always look up what the return policy and buyer protection policies are when I buy things online, but I didn’t do that this time,” Ms. Sloman said.

Ways to shop safely online

Be careful on Facebook Marketplace. Meta provides help pages with tips on how to avoid scams, how to buy responsibly and how to report sellers.

Google the company or product. If a seller is fraudulent, others might have flagged it. There are likely to be websites calling it out.

Visit the seller’s website. Instead of tapping an ad, open a new tab and go to the advertiser’s website. Look for a return policy and ways to contact the business.

Read ad comments. If the comments below a social-media ad have been turned off—as was the case with the shoebox ad—that is a red flag.

Check product reviews. David Richardson, a vice president at data-security company Lookout, suggests searching Amazon and Reddit for any complaints in customer reviews. Remember that a lack of negative reviews is also a red flag.

Ask the seller for proof. After getting burned on Facebook Marketplace, Ms. Sloman learned a trick: You can ask sellers to write your name on paper and photograph it next to the item, to prove they have what they claim to be selling.

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Write to Cordilia James at [email protected] and Julie Jargon at [email protected]

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