How Social Media Companies Are Failing to Stop Scam Ads — And What It's Costing UK Victims
Social media platforms continue to generate billions in advertising revenue every year. What fewer people realise is that a significant proportion of that revenue comes from scam advertisements and fraudulent promotions that have cost UK victims millions of pounds.
Fraud now accounts for 45% of all crime in the UK and costs the economy an estimated £14.4 billion every year. A growing body of evidence suggests that social media advertising is one of the primary channels through which scammers reach their victims and that the platforms are not doing enough to stop it.
Major news organisations such as The Sunday Times have reported recently on how Meta profits from these advertisements. Our co-founder, William Ayles featured in the report giving his thoughts on the Online Safety Act.
In this article we explore how scammers exploit social media advertising, the real impact on victims, what major organisations are calling for, and how you can protect yourself.
How Scammers Advertise on Social Media and Why It Works
With an estimated 55.5 million social media users in the UK and accounting for over 80% of the population, social media platforms represent an unparalleled opportunity for fraudsters to reach potential victims at scale.
Advances in AI technology have made scam advertisements increasingly convincing. Fraudsters can now create professional-looking promotions complete with enticing visuals, fake celebrity endorsements, and compelling copy that is genuinely difficult to distinguish from legitimate advertising. Many social media users assume that advertisements shown on major platforms have been verified and that some form of checking process has confirmed they are safe.
The reality is very different. The latest figures show that social media companies generated an estimated £3.8 billion from scam ads targeting European users in 2025 alone (Which?, 2026). The scale of that revenue makes clear that the platforms have prioritised profit over the protection of their users.
Scams advertised on social media take many forms, from investment fraud and fake cryptocurrency schemes to romance scams and purchase fraud. You can read more about the top 10 scams currently targeting UK victims with a significant proportion of which are advertised through social media.
The Real Impact on Victims
At Refundee we speak to scam victims everyday and the most common part victims tell us is that they found the opportunity on a social media platform.
One client told us:
"I saw the ad online and it looked so professional — it allowed me to learn more without sending any money. I was then taken away from the platform and contacted by a financial adviser who persuaded me to invest. I thought it would be safe because it was advertised through a legitimate platform."
This is a pattern we see repeatedly. Victims trust the platform and fraudsters deliberately exploit that trust. This particular client lost £80,000 to an investment scheme they found through a social media ad. Refundee was ultimately able to recover their funds through UK banking regulations for APP Fraud, but for many victims the outcome is very different.
The Sunday Times investigation highlighted a similar case: a woman who lost £43,000 to a pump and dump scheme that began in a WhatsApp group. She was groomed by scammers for months, and within days of her initial research her entire social media feed had been flooded with similar trading content, creating a false sense of legitimacy. The WhatsApp group responsible remains active.
The financial loss is devastating. But as we explored in our article on the psychological effects of being scammed, the emotional impact of anxiety, shame, and loss of trust can be equally long-lasting.
Greater Accountability is Overdue
Banks, regulators, and the government collectively spend millions every year attempting to prevent and respond to fraud. Meanwhile, social media platforms continue to profit from the very advertisements that drive it.
Major consumer organisations are now pushing for change. Which? and Martin Lewis of MoneySavingExpert have partnered to call on the government to hold social media companies to greater account for the scam advertisements appearing on their platforms. This follows years of deepfake advertisements using Martin Lewis's image to promote fraudulent investment schemes, something Martin Lewis himself has repeatedly and publicly condemned.
The Regulatory Battle: Online Safety Act vs Meta
The Online Safety Act represented a step forward, but consumer groups argue it does not go far enough in placing financial responsibility on platforms for the harm caused by scam advertisements they have approved and profited from.
Under the Act, Ofcom has the power to fine Meta up to 10% of its global revenue for failing to prevent scams on its platforms.
Meta is currently challenging that calculation in the High Court, arguing that any fine should be based on UK revenue alone.
As William Ayles told the Sunday Times, the Act simply does not carry enough consequence for platforms of this scale to fundamentally change their behaviour.
Banks Have A Responsibility Too
UK Finance data shows that investment scams grew 40% last year, with just 48% of funds returned to victims. At the same time, regulatory protections are moving in the wrong direction. The PSR's revised reimbursement rules and proposed FOS changes, which would allow cases to be dismissed where a police investigation is ongoing.
Our own data shows that tens of millions of pounds worth of fraud victims’ losses will not be refunded as a result of these changes.
We need to ensure that when people do fall victim to scams, they can get their money back quickly and that this process is as pain-free as possible.
How Can You Protect Yourself From Scam Advertisements?
Whilst social media companies can do more to prevent these advertisements on their platforms, it is important to conduct due diligence to ensure an advertisement is really safe.
Verify the company independently
Search for the company's official website yourself rather than clicking the ad.
Check that the website domain matches the legitimate business.
Research the company online
Look for reviews, news articles, and independent mentions
Search terms such as "[Company Name] scam", "[Company Name] reviews", or "[Company Name] complaints".
Check regulatory registrations
For financial services, verify the company is authorised by the relevant regulator, such as Financial Conduct Authority in the UK.
Inspect the website carefully
Check for spelling mistakes, poor grammar, broken links, or recently created websites.
Be cautious of celebrity endorsements
Scammers regularly use fake celebrity endorsements such as Martin Lewis to promote their schemes
Question unrealistic claims
High, unrealistic or guaranteed returns are always a red flag for fake investment schemes
Never rely on the platform's approval alone
Just because an ad appears on Facebook, Instagram, Google, TikTok, or another platform does not mean it has been fully verified or endorsed by that platform.
Have You Lost Money to a Scam Advertised on Social Media?
If you have lost money, acting quickly improves your chances of recovery. Take the following steps as soon as possible:
Stop making any further payments
Preserve all evidence - emails, contracts, transaction records and any communications
Report the matter to Report Fraud
Contact your bank to notify them of the situation
Contact Refundee to explore your recovery options - acting quickly improves your chances
At Refundee, we speak with fraud victims every day, people whose lives have been significantly affected by being targeted, manipulated, and deceived through social media scam advertisements. Losing hard-earned money to a criminal is not something anyone should face alone.
Can You Recover Money From a Scam?
If you transferred funds from a UK bank account after being targeted through a social media advertisement, you may be eligible to pursue reimbursement through Authorised Push Payment (APP) fraud rules. Under the PSR Mandatory Reimbursement Model, UK banks are now required to assess reimbursement claims from customers who have lost money through APP fraud.
Refundee has recovered over £130 million for clients with a large proportion from cases that originated through social media scam advertisements on a no win, no fee basis. We manage every case from start to finish and only charge a fee if we are successful.
You can read more about our fees here.
Start your free eligibility assessment here — or read verified reviews from our clients onTrustpilot.
Refundee Ltd is authorised and regulated by the Financial Conduct Authority (FRN: 937096).
More about Refundee
Here are the technical bits:
Refundee Ltd is a claims management company authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activity FRN: 937096.
Registered with the Information Commissioner's Office; registration number: A8986071.
Registered office address: Refundee, 3rd Floor, 86-90 Paul Street, London, EC2A 4NE.
Registered as a company in England & Wales; number: 12855931.
Frequently Asked Questions (FAQs)
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Scammers purchase advertising space directly through platforms like Facebook, Instagram, TikTok, and Google using fake company names and AI-generated creative. Many use deepfake celebrity endorsements to appear credible.
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According to research by Which? in 2026, social media companies generated an estimated £3.8 billion from scam ads targeting European users. This figure illustrates the scale of the problem and the financial incentive platforms have to address it more rigorously.
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Yes. You can report scam advertisements directly through the platform where you saw them. You should also report to Report Fraud and, if the ad involves a financial product, to the FCA.
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An unauthorised firm is one that offers financial services in the UK without being registered with the FCA. It is illegal to do so, and investors who deal with unauthorised firms have significantly fewer protections. The FCA maintains a warning list of firms flagged as potentially operating without authorisation.
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Possibly - if you paid by UK bank transfer, you may be eligible to recover funds through Authorised Push Payment (APP) fraud rules. Refundee assesses each case individually on a no win, no fee basis. Start your eligibility check here.
