Scammers Hijack Social Media Accounts For Crypto Fraud, $2 Billion Lost — How To Protect Yourself

Cryptocurrency continues to grow in popularity. At the same time, fraud linked to digital assets is also increasing. Investigators say a rising number of scams now begin on social media platforms such as X, Instagram and Facebook. Hackers gain access to legitimate accounts and then use those profiles to promote fake cryptocurrency investment opportunities.

Because the posts appear to come from trusted individuals, followers often assume the messages are genuine. The fraud only becomes clear after money has already been sent.

Social Media Turns New Breeding Ground For Scam

According to Courtney Werning, an investor fraud attorney and principal at Meyer Wilson Werning, many cryptocurrency scams now originate through social media accounts. Werning has represented victims of financial fraud and says the trend is becoming widespread. She explained that scammers often take control of influencer or public profiles and begin promoting cryptocurrency links to followers.

Those links typically lead to websites that appear legitimate but are controlled by criminals. Victims who send funds through these platforms unknowingly transfer money directly to scammers. Werning said many fraud cases she encounters begin with a post or message on social media.

When Hackers Take Over Real Accounts

The scam becomes more convincing when criminals gain access to real accounts with established audiences. Dave Simpson, a retired Rochester police investigator and host of The Crime Dawg podcast, said hackers took control of his X account and began posting cryptocurrency promotions to his followers.

Simpson said the attackers changed both his password and the email linked to the account. Once those details were altered, he lost control of the profile. The scammers then used the account to send messages promoting cryptocurrency investments to people who trusted the profile. Werning said this tactic is effective because followers believe they are hearing from someone they know.

Billions Lost to Social Media Fraud

Financial losses linked to social media scams have risen sharply. Data from the Federal Trade Commission shows that nearly $2 billion in reported losses were linked to social media scams in 2024. The agency said the figure represents a significant increase compared with previous years.

Werning said cryptocurrency scams account for a large share of those cases. Because digital transactions move quickly, victims often realise the fraud only after the funds have already been transferred.

How Users Can Protect Themselves

Security experts say simple precautions can reduce the risk of becoming a victim. Werning advises users to pause before clicking on links shared on social media.

Hovering over a link can reveal the true website address before opening it. She also recommends using two-factor authentication to protect online accounts from being compromised.

Anyone who believes they have lost money in a cryptocurrency scam is encouraged to report the incident to their local police department. Reports can also be submitted to the FBI Internet Crime Complaint Center, which tracks cybercrime cases across the US. As cryptocurrency adoption grows, authorities say online vigilance remains essential for protecting digital assets.