Social Media and Telecom Scam Losses Projected to Top $5 Billion by 2031, Research Warns

The Financial Technology Association and Revolut have issued a stark warning regarding the escalating cost of digital fraud, revealing that social media and telecom-originated scams are on track to cost American consumers $5.1 billion by 2031. For fintech professionals, the report highlights an urgent shift toward cross-industry accountability as scammers increasingly bypass traditional banking defenses to reach victims at the source.

What was announced

The report, titled “Stopping Scams at the Source: The Case for a Whole-of-Ecosystem Approach,” produced by Juniper Research, identifies a growing gap in fraud prevention. While total fraud costs reached $16 billion in 2025—a 25.5% increase from the previous year—the research projects that scams originating on social media and messaging platforms will rise sharply. By 2031, social media scam losses are expected to reach $4 billion, a significant jump from the $2.3 billion projected for 2026. Messaging-based fraud is also on a steep trajectory, expected to pass the $1 billion mark by 2028 and reach $1.15 billion by 2031.

The data suggests that the average U.S. user will be exposed to more than 440 scam ads per month by 2031, up from approximately 340 today. This equates to nearly 1.5 trillion scam ad impressions annually, compared to 1 trillion in 2026. Furthermore, mobile users are projected to receive 28 billion fraudulent messages, almost double the 14.8 billion expected in 2026. Scams initiated via social media and text messages currently account for 35% of fraud attempts and 38% of total losses.

The report argues that current financial services tools, such as transaction monitoring and identity verification, operate too late in the scam lifecycle. It advocates for a national fraud-prevention strategy, supporting bipartisan proposals in the 119th Congress to establish a Treasury-led interagency task force. Specific recommendations include requiring social media platforms to strengthen advertiser verification and calling on telecom operators to implement network-level blocking and device-level filters. It also notes the FTC’s pending rulemaking on impersonation scams, which remains open for comments through November 30, 2026.

"Banks and fintechs are often the last line of defense against fraud, but we can’t be the only ones,"

Penny Lee, President and CEO of the Financial Technology Association

The companies involved

Revolut is one of the world’s most prominent fintech companies, having grown from a digital-only challenger bank into a global financial "super app" with millions of users. The company has a significant presence in the market, frequently expanding its product suite beyond core banking into areas like travel, telecommunications, and charitable giving. In the United States, Revolut operates as a key player in the digital banking sector, focusing on deploying highly sophisticated technology to manage consumer finances and combat financial crime.

The Financial Technology Association (FTA) serves as a primary trade organization representing the interests of the fintech industry in Washington, D.C. The association advocates for modernized financial regulations and policies that support innovation while protecting consumers. Its membership includes a broad spectrum of fintech firms, ranging from payment processors to digital lenders and wealth management platforms. By partnering with member firms like Revolut on research initiatives, the FTA aims to influence the legislative landscape, particularly regarding consumer protection and the digital ecosystem's security. The organization is actively engaged with policymakers to ensure that the regulatory framework evolves alongside technological advancements in the financial sector.

What FF News has reported before

FF News has followed Revolut’s rapid diversification and its advocacy for open market access. Recently, the company supported regulatory moves to increase competition, as seen when Revolut Backs CMA Move to Open Apple NFC Access for UK Fintechs. The firm has also moved into the telco space itself, as reported in Revolut Disrupts German Telecom Market with Launch of Revolut Mobile. Beyond commercial expansion, Revolut has leveraged its platform for social impact, which we covered when Revolut Partners with International Rescue Committee to Enable Global Humanitarian Donations. Additionally, the company continues to enhance its loyalty ecosystem, recently noted in Revolut and Eurostar Partner to Turn RevPoints into European Rail Travel.

What this means

This report signals a shift in the fintech industry’s defensive strategy, moving from internal security upgrades to public lobbying for external accountability. By highlighting the multi-billion-dollar cost of "upstream" fraud, fintechs are placing direct pressure on Big Tech and telecom giants to share the financial and operational burden of consumer protection. This creates a potential regulatory friction point: if social media platforms are forced to verify every advertiser, their high-margin, low-friction business models could suffer. The open question for the sector is whether the U.S. Treasury will indeed step in to mandate this "whole-of-ecosystem" approach or if fintechs will remain the primary insurers of digital trust.