How social media fuels payment app scams

What started as an Instagram DM ended in one scam victim losing $300. After messaging a tattoo artist Adriana Ocañas found through a convention post, she sent a deposit using a payment app to secure her spot. But when she showed up, the real artist had no idea who she was, and she realized she’d been scammed.

Social media has become a hotspot for payment scams, where fraudsters pose as sellers, artists, or even friends to trick users into sending money through peer-to-peer apps. Some banks, including Chase, are starting to block suspicious transfers, but staying safe still starts with knowing the red flags.

Keep reading for a breakdown of how these scams work, where they happen most, and how to protect yourself.

The risks of social media and payment apps

Scammers are using social media to find and target victims, then directing them to send money through payment apps like Zelle, Venmo, or CashApp.

This tactic is especially dangerous because, unlike credit cards, most payment apps have limited, if any, purchase protection. Once a victim sends money, the transaction is typically irreversible, making it nearly impossible to recover lost funds.

Most of these online scams are push payment fraud, meaning the scammer convinces the victim to authorize the payment through manipulation tactics. 

In one case, a woman responded to a Facebook Marketplace listing for a free piano. The seller directed her to coordinate delivery with a moving company, which requested a $340 fee via PayPal and a $370 interest charge via Zelle. She later realized the entire setup was a scam.

In another instance, a woman replied to a Facebook post from a friend offering four Taylor Swift tickets. She sent $1,600 through Zelle, trusting the transaction because it came from someone she knew. Unfortunately, someone had hacked her friend’s account, and her bank refused to refund the payment.

Common types of social media payment scams

Scammers use social engineering tactics to gain your trust and convince you to send money through payment apps where there’s little buyer protection and usually no way to get your money back. Here are a few common P2P app scams to watch out for:

• Fake online marketplaces and sales: Scammers create fake listings on social media marketplaces, offer items at unusually low prices, request payment through payment apps, and then never give you the item.
• Romance scams: Scammers build online relationships to gain your trust and affection, only to make up an emergency to lure you into sending money.
• Investment scams: Cybercriminals promote fake investment opportunities, promising you a lot of money for little risk, and then pressuring you to "invest" by transferring money through payment apps.
• Fake giveaways and contests: Scammers create fake giveaways or contests promising valuable prizes, then ask you to pay a “processing fee” via a payment app.

The social media platforms targeted the most

While social media scams are surging overall, Facebook by far has the most social-media-related threats, largely due to Facebook Marketplace scams and Facebook Group discussion boards, which are both prime ways for scammers to reach victims.

And the numbers don't lie: According to Gen’s recent Threat Report for the first quarter of 2025, Facebook saw three times more threats than any other platform.

• Facebook: 63%
• YouTube: 22%
• X (formerly Twitter): 7%
• Instagram: 3%
• Reddit: 3%
• Other: 3%

Even though Facebook leads by a wide margin, scammers are active on every platform, so it’s just as important to stay alert wherever you scroll.

How to protect yourself from payment scams on social media

While Zelle is taking steps to block suspicious payments originating from social media, you still need to take charge of your own safety. Here are some tips to help protect yourself from social media threats:

• Make your accounts private: Limiting who can see your posts reduces the chances of scammers targeting you in the first place.
• Don’t send money to strangers: Payment apps like Zelle are meant for trusted friends and family, not people you meet online.
• Stay skeptical: If a deal, giveaway, or investment opportunity sounds too good to be true, it probably is.
• Opt for safer payment methods when possible: Credit cards often provide buyer protection, giving you a better chance of recovering funds if you get scammed.
• Use scam detector tools: Upload suspicious social media messages to an AI scam detection tool, like Norton 360 Deluxe, to quickly check if they’re scams.

Steer clear of social media scammers

While banks are working to protect customers from fraud, it’s ultimately up to you to know the signs of a scam. If a stranger you’ve never met slides into your social media DMs asking for money through a payment app, it should raise a red flag. And if you have any doubts, don’t hit send.

FAQs

Why do scammers prefer apps like Zelle or Venmo?

Fraudsters often launch Zelle and Venmo scams because transfers are usually instant and difficult to reverse. 

What are the red flags of a social media payment scam?

Common red flags include financial requests from strangers, a sense of urgency to send money immediately, and pressure to use specific payment apps like Zelle or Venmo.

Can payment apps reverse a scam transaction?

In most cases, payment apps cannot reverse a scam transaction, especially if you authorized the payment.