How to help protect your business from social media scams
Scams on social media can cost your business money. Learn what to watch for. Presented by Chase for Business.
- Social media can be a useful tool for small businesses, but it also creates opportunities for scammers posing as legitimate buyers, sellers and service providers.
- Common scams rely on urgency and convincing details, such as low prices, copied photos or screenshots used as false proof of payment.
- To help protect your business, you should independently verify contacts, confirm that payments have been made before taking action and be cautious with payment methods that don’t offer purchase protection.
According to the Chase 2026 Business Leaders Outlook, social media remains the most well-developed tech for small business owners. Social media can help business owners connect with customers, find vendors and discover new opportunities.
But these platforms can also create opportunities for scammers. Nearly 50% of scams reported to Chase in the second half of 2025 originated on social media, where fake ads, spoofed websites and marketplace scams can look convincing at first glance.
For a business owner, the cost of a scam can go beyond the initial payment. A fraudulent deposit, invoice or buyer can interrupt operations and cash flow and take time away from running your business. That’s why it’s important to know what to look for before you send money or respond to a payment request.
Why social media scams can be hard for businesses to spot
Scammers often make an offer look real enough to earn your trust, and then they create urgency so you act quickly. A seller may post professional-looking photos. A buyer may sound legitimate and ready to pay. A profile may appear active and established.
Social media scams often involve fake ads for merchandise, cars, property rentals and business services, and they can appear in marketplaces, groups and spoofed websites. Scammers may also pressure you to send payments with Zelle®, or wires, which can be risky when you don’t know or trust the recipient.
Business owners may run across these social media scams when:
- Buying equipment, supplies or inventory
- Hiring or paying a deposit to a contractor or service provider
- Selling goods and communicating with buyers through social media
Common social media scams that can affect businesses
Fake sellers
A scammer may advertise equipment, supplies or services at a price that seems hard to pass up. Then after you send a deposit or payment, the seller disappears, the goods never arrive or the service is never performed. Social media is flooded with fake ads and spoofed websites, and it’s common for people to pay for something they never receive.
Fake buyers
Buyers aren’t the only target of social media scams. So are businesses with goods to sell. A fake buyer may claim to have sent payment, submit a screenshot as proof and say they need a refund for overpayment. Without verifying that the claim is true, you could compensate these scammers for a false story.
Scammers using Zelle®
Some scammers tell sellers they need to pay to upgrade their Zelle® account for their business or increase their transaction limit before they can receive money from a buyer. Please note that Chase and Zelle will never ask you to send money to upgrade your Zelle account or increase your limit. There is no such thing as an upgraded Zelle account for this purpose.
Social media phishing
Phishing is when a scammer uses messages or fake profiles to trick you into sharing sensitive information, such as your login credentials or financial details. On social media, these scams can lead to the compromise of your business email. A scammer could pose as a trusted contact, vendor or executive to ask for your credentials — and then use that interaction to get into your business email accounts. Once they have access, the scammer could send fraudulent payment requests, change invoice details or redirect funds without detection.
Red flags to watch for your business
Social media scams can all look different, but many share the same warning signs. Watch for:
- Prices that seem unusually low
- Pressure to act immediately
- Sellers or buyers who want to move the conversation off platform right away
- Photos that look generic or copied
- Listings that do not match the company’s legitimate website
- Requests for payment methods that do not offer purchase protection
- Screenshots used as “proof” of payment from scammers posing as buyers
- Urgent messages that try to rush you before you can confirm details
Before you send money, slow down and ask yourself: “Am I sure this isn’t a scam?”
Why the payment method matters
Not all payment methods offer the same safeguards. Purchase protection is a benefit you may get with some forms of payment, such as credit cards, for eligible purchases. However, cash, checks, crypto, gift cards, wire transfers and Zelle® are all forms of payment that do not provide purchase protection. If something goes wrong, it’s highly unlikely you’ll get your money back.
That matters when your business is paying a deposit, buying goods from an unfamiliar seller or responding quickly to what looks like a time-sensitive opportunity. If a seller insists on a payment method without purchase protection, that could be a sign to slow down and verify more carefully.
For your protection, Chase will not allow you to send Zelle payments identified as originating from a contact through social media. We will decline those transactions because Zelle is only meant to pay friends, family and other trusted recipients you know. Learn more about using Zelle safely.
Steps to reduce the risk of social media scams as a small business owner
While business owners can’t avoid every threat, a few habits may help lower the odds of getting caught in a scam.
- Verify the business or person independently. Don’t rely on just a social media profile or direct message. Look up the company’s legitimate website, phone number and contact information on your own before sending money.
- Compare listings and details. If a social media account claims to represent a business, compare the item, service, price and contact information against the company’s official website. If you can’t find the same item for sale at the same price on the legitimate site, it may be a scam.
- Confirm payments through your own channels. If you’re selling, do not ship goods, issue refunds or release inventory based only on a screenshot or message sent through social media claiming payment was sent. Before acting, always confirm with your bank or payment platform that funds have arrived.
- Train employees on common scams. If employees help manage purchasing, social media inquiries, billing or sales, make sure they also know how fake seller and fake buyer scams work. A simple internal review process for new vendors, deposits and refund requests may help reduce risk.
- Slow down the interaction. Scammers often want a business owner to act before they have time to think. Building in even a brief review step may help your team spot warning signs before money moves.
The bottom line on social media scams
Social media can be a useful tool for your business, but it should never replace due diligence. If a seller, buyer or listing is pushing you to move fast, use an unprotected payment method or trust a screenshot instead of a verified payment, take a step back.
The more familiar you are with common scam tactics, the easier it may be to spot red flags before money leaves your account. And when something feels off, it may be best to just walk away. Visit our Security Center to learn more about how to protect yourself from social media scams as well as imposter scams, investment scams, job offer scams, romance scams and more.
