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Scrolling through Facebook, Instagram, TikTok, or another social platform, you probably see dozens of advertisements every day. Some come from businesses you recognize. Others may look almost identical to brands you already know.

Related Page: HOW TO KNOW IF YOUR BANK ACCOUNT HAS BEEN HACKED

That familiarity can create a sense of trust.

But here's the important thing to understand: just because an advertisement appears on a social media platform doesn't mean the platform has verified that the business, product, or offer is legitimate.

The Federal Trade Commission (FTC) recently warned consumers that social media platforms don't always thoroughly vet the ads or advertisers appearing in users' feeds. In 2025 alone, consumers reported losing more than $95 million to scams that started when they ordered something after seeing an ad on social media. And that's only the reported losses.

So, are social media ads checked for scams? The answer is more complicated than a simple yes or no.

Here's what consumers should know before clicking.

Are Social Media Ads Vetted for Scams?

Social media platforms generally have advertising policies and systems designed to identify and remove prohibited or misleading content. They may review advertisements using automated technology, human reviewers, reports from users, or a combination of these methods.

However, ad approval is not the same thing as guaranteeing that an advertiser is legitimate.

A platform may determine that an advertisement meets its advertising requirements without independently verifying every claim made by the advertiser or confirming that the business will deliver exactly what it promises.

That's an important distinction.

The FTC puts it plainly: social media platforms don't always thoroughly vet the ads or the advertisers behind them. Scammers can take advantage of this by purchasing advertisements just like legitimate businesses do.

In other words, seeing an ad on a major social media platform shouldn't be treated as an endorsement or guarantee.

Why Can Scam Ads Get Through?

Scammers have become increasingly sophisticated.

They can create professional-looking websites, copy the branding of legitimate companies, use convincing photographs, write polished advertising copy, and even create fake customer reviews or testimonials.

Some scams also impersonate real businesses.

A fraudulent advertiser might use a familiar brand name, a similar logo, or a website address that looks legitimate at first glance. The goal is to make you feel comfortable enough to click before you stop to investigate.

And because social media advertising allows advertisers to target people based on characteristics such as interests and shopping behavior, scammers can reach very specific audiences at relatively low cost.

What Happens When You Click a Scam Ad?

The ad itself may not be the final scam.

Often, the real danger begins after you click.

A social media ad can send you to a website designed to:

• Collect your credit or debit card information
• Steal your username and password
• Capture personal information
• Install malicious software
• Sell counterfeit products
• Take payment for products that never arrive
• Collect information for identity theft
• Convince you to send money directly to a scammer

The website may even look professional.

That's why checking the destination is just as important as evaluating the advertisement itself.

Common Types of Social Media Ad Scams

Scam advertisements aren't limited to one particular type of fraud. They can take several forms.

Fake Shopping Ads

Shopping scams are one of the most common types of scams connected to social media.

According to the FTC, more than 40% of people who reported losing money to a social media scam in 2025 said the scam began when they ordered something they saw in an advertisement. Products ranged from clothing and cosmetics to car parts and even pets.

The pattern is often familiar:

1. You see an unusually attractive deal.
2. You click the advertisement.
3. You're taken to a website that looks legitimate.
4. You enter your payment information.
5. The product never arrives—or what arrives isn't what you ordered.

Some scam websites also imitate well-known brands while offering dramatic discounts.

If a $500 product is suddenly being advertised for $49, take a moment before reaching for your credit card.

Fake Investment Opportunities

Investment scams can be especially dangerous because the potential losses can be much larger.

The FTC reported that consumers lost $1.1 billion to investment scams originating on social media in 2025, accounting for more than half of the money reported lost to social media scams.

These advertisements may promise:

• Guaranteed investment returns
• Easy passive income
• A secret investing strategy
• Cryptocurrency opportunities
• "Risk-free" investments
• Exclusive access to an expert
• A system that supposedly beats the market

Some advertisements use fake testimonials or portray people who appear to have become wealthy through the advertised strategy.

Be especially cautious when an investment opportunity promises unusually high returns with little or no risk. As the FTC explains, legitimate investments involve risk, and promises of guaranteed returns are a major warning sign.

Impersonation Scams

Another common tactic is impersonation.

A scammer might create an advertisement that appears to come from:

• A major retailer
• A financial institution
• A government agency
• A technology company
• A well-known celebrity
• A local business

The advertisement may use familiar logos, colors, photographs, and language.

The goal is to borrow the credibility of someone you already trust.

Financial institutions are particularly important to watch for because scammers may try to convince consumers that there is a problem with their account or that immediate action is required.

If an advertisement or message claims to be from your bank and asks you to provide your password, security code, or other sensitive information, don't respond through the advertisement. Instead, contact your bank using a phone number or website you already know is legitimate.

Fake Jobs and Work-From-Home Offers

Social media ads can also promote fake employment opportunities.

These advertisements may promise unusually high pay for simple work, flexible hours, or the ability to make thousands of dollars from home.

The scammer may eventually ask you to:

• Pay a fee to get started
• Purchase equipment from them
• Provide your Social Security number or bank information
• Deposit a check and send some of the money elsewhere
• Pay for training or access to a supposedly exclusive system

A legitimate employer generally doesn't require you to send money simply to receive a job.

Fake Giveaways and Promotions

"Congratulations! You've been selected."

Messages and advertisements using this kind of language can be designed to create excitement before asking for personal information or payment.

The prize may be fake. The promotion may be fake. Or the organization behind it may be impersonating a legitimate company.

Before participating, find the promotion through the company's official website rather than relying solely on the social media advertisement.

How to Tell If a Social Media Ad Is Legitimate

There isn't one magic test that catches every scam.

Instead, think of verification as a series of small checks.

1. Look Closely at Who Is Actually Selling the Product

Don't assume the name in the advertisement is the company behind it.

Look at the advertiser's profile, business name, website, and contact information.

Then search for the business independently.

The FTC recommends searching for the company's name along with terms such as "scam," "complaint," or "review."

2. Don't Let a Big Discount Make the Decision for You

A huge discount can be legitimate.

It can also be the bait.

Compare the advertised price with prices from several established retailers. If the price is dramatically lower than everywhere else, slow down and investigate.

The FTC specifically recommends comparing prices when evaluating suspicious social media advertisements.

3. Check the Website Address Carefully

Scammers frequently create website addresses that resemble legitimate businesses.

Look for:

• Misspellings
• Extra words or characters
• Unusual domains
• Strange URLs
• Missing contact information
• Poorly written pages
• Links that don't work
• A website that was recently created

A padlock or HTTPS connection is useful for protecting information while it travels between your browser and a website, but HTTPS does not prove that the business itself is legitimate.

A scam website can use HTTPS, too.

4. Look for Independent Reviews

Don't rely entirely on testimonials displayed on the website selling the product.

Look for reviews on independent platforms and search the business name alongside words like "complaint" or "scam."

Be careful with reviews that all sound nearly identical, were posted within a very short period, or seem unusually enthusiastic without providing meaningful details.

5. Check How You're Being Asked to Pay

Payment methods can provide another important warning sign.

The FTC warns consumers to be especially cautious if an online seller insists on payment through gift cards, wire transfers, cryptocurrency, or payment apps.

When appropriate, using a credit card for an online purchase can provide additional dispute protections if something goes wrong.

6. Don't Give Sensitive Information Just Because an Ad Asks for It

A social media ad doesn't need to be trusted simply because it looks professional.

Be particularly cautious before entering:

• Social Security numbers
• Bank account numbers
• Debit card information
• Online banking passwords
• One-time authentication codes
• Driver's license information
• Copies of identification documents

If you're unsure why a company needs sensitive information, stop and verify the request independently.

What About the "Verified" Checkmark?

A verification badge can be useful for understanding an account's status on a particular platform, but it should not be treated as a guarantee that every product, promotion, or link associated with that account is legitimate.

Platform verification systems can change, and a legitimate account can also be compromised.

The safest approach is to consider verification one piece of information—not proof that an offer is safe.

Why You Shouldn't Assume Ad Approval Means "Safe"

It's easy to think of advertising platforms as a gatekeeper:

A company submitted an ad. The platform approved it. Therefore, the company must be legitimate.

That's not how consumers should think about online advertising.

Advertising platforms have rules designed to prevent deceptive or prohibited advertising. For example, Google's advertising policies prohibit misleading representations about businesses, products, services, identities, and affiliations.

But policies and enforcement systems cannot guarantee that every scam will be caught before an ad reaches someone's screen.

That's why consumers still have an important role to play.

Think of the platform's review process as one layer of protection—not your final security check.

What Should You Do If You Think an Ad Is a Scam?

If something doesn't feel right, don't click further.

If you've already clicked, don't panic. Your next steps depend on what happened.

If You Only Clicked the Advertisement

Close the website and don't provide any information.

If the website downloaded anything automatically or asked you to install software, take additional security precautions and consider running a security scan on your device.

If You Entered a Password

Change that password immediately—especially if you use the same password anywhere else.

If you reused the password on other accounts, change those accounts too.

If You Entered Financial Information

Contact your bank or card issuer as soon as possible.

Tell them what happened and ask what steps they recommend to protect the account or card.

At Liberty Savings Bank, we encourage customers to contact us if they believe their account information may have been compromised. Our Fraud Prevention resources provide additional guidance, and customers can contact our FreedomLine at 800-436-6300 or visit a local Financial Center.

If You Lost Money

Report the scam.

The FTC accepts reports through ReportFraud.gov. Reporting may help investigators identify patterns and protect other consumers.

If the scam involved identity theft, the FTC also provides resources through IdentityTheft.gov.

A Simple Checklist Before You Buy From a Social Media Ad

Before entering your payment information, take 60 seconds and ask:

• Who is selling this?

• Can I independently verify the company?

• Is the deal realistic?

• Is the price dramatically lower than comparable products?

• Where does the link go?

• Does the website address belong to the company I think I'm buying from?

• What are other people saying?

• Can I find independent reviews or complaints?

• How am I being asked to pay?

• Are they insisting on an unusual or difficult-to-reverse payment method?

• What information are they asking for?

• Does the seller really need this information?

• Am I being rushed?

• Does the offer say I have only seconds or minutes to act?

If several answers make you uncomfortable, step away.

A good deal will still be worth researching.

Social Media Is Useful—but It Isn't a Trust Certificate

Social media has become an important part of how local businesses connect with customers. It helps people discover restaurants, retailers, community organizations, financial institutions, and small businesses they might never have encountered otherwise.

We see the value of that connection in our own communities throughout Sarasota and Manatee counties.

But a platform connecting you with a business doesn't automatically establish a relationship of trust.

That's something we believe is particularly important in banking.

When you need financial information, don't rely solely on an advertisement, social media post, or message that happens to appear in your feed. Go directly to the organization's official website, call a known phone number, or speak with someone you trust.

At Liberty Savings Bank, we make it easy to find a local Financial Center or contact our team when you have a question.

Treat Every Social Media Ad as an Invitation to Investigate

So, are ads on social media vetted or checked for scams?

Platforms do have advertising policies and review systems, but consumers should not assume that every advertisement has been independently verified or guaranteed to be legitimate. The FTC's recent guidance makes that clear.

The safest habit is simple: pause before you click, verify before you buy, and never provide sensitive financial information simply because an advertisement looks legitimate.

And if you're unsure, ask someone you trust.

That's one of the advantages of having a real relationship with your financial institution. At Liberty Savings Bank, we're part of the communities we serve, and we're here to help our neighbors navigate not only their everyday banking needs, but the increasingly complicated financial world around them. Because when it comes to protecting your money, our interest is in you.