Are Instagram Ads Scams? 10 Telltale Signs To Spot Scammers + How To Dodge

Instagram is no longer just a place to share photos and videos. With the rapid development of e-commerce, Instagram has evolved into a bridge between shoppers and businesses who need to advertise their products and services. However, with this great power comes a shadow: the risk of scams. 

So, are Instagram ads scams? In today’s blog post, I, as a seasoned digital marketing and e-commerce expert, will help you identify and dodge fraudulent ads on Instagram.

What Are Instagram Ads?

Instagram ads are paid posts shown to users on Instagram. You can see ads when browsing your feed, stories, reels, and explore pages. They look like organic posts but with a Sponsored label and a call-to-action button that often links to a destination page, encouraging users to purchase something.

Are Instagram Ads Scams? The Ugly Truth

So, are Instagram ads legit or fraudulent? My short answer is that they can be either. 

Legitimate businesses create Instagram ads to promote genuine products and services. On the other hand, scammers exploit them to deceive users for money or personal information. Scam ads can look very similar to legitimate ads and many consumers have fallen into these traps.

According to the Federal Trade Commission, the most reported scam loss originates on social media. These scams often begin with a Facebook or Instagram ad.

Source: FTC

Why Are Instagram Ad Scams Rampant?

Although Meta has put much effort into fighting Instagram ad scams, they continue to be a hot potato on the platform. 

First, creating fraudulent ads is simple and quick. Scammers can use multiple accounts to create multiple ads at a time. They can steal high-quality photos and videos from legitimate brands to create ads in minutes. They can leverage deepfake technology to impersonate influencers and celebrities. They can even use black hat tactics to hide their violating content or landing pages to circumvent Instagram’s automatic review systems. 

Even though Instagram has removed an enormous number of violating ads, scam associations keep throwing a bunch of new fraudulent ads at the wall hoping some of them pass the barrier. And it seems scammers are always ahead of Instagram’s attempts to block them. 

Therefore, fighting scam ads is not only the responsibility of Instagram. We, consumers and businesses, must join this battle to protect ourselves. 

How Do Instagram Ad Scams Impact Consumers And Brands?

Instagram ad scams pose threats to consumers and legitimate businesses alike. 

Their most obvious impact on consumers is the loss of money and personal information. Counterfeit and low-quality goods can even harm users’ health and lives.

For genuine businesses, Instagram ad scams can erode their revenue and create unfair competition because they often offer much lower prices than real sellers. Also, they can negatively impact brand reputation and consumer trust.

Common Types Of Instagram Ad Scams

Instagram ad scams can be in various forms. It can’t be denied that scammers are creative and constantly develop new tactics to deceive people. However, there are 3 main types of scams that defrauders often use:

Fraud giveaways

This type of scam usually promises gifts or chances to win a reward and asks users to follow, like, and tag friends in return. But in fact, there is no gift and they never announce a winner. 

Counterfeit goods

These ads often fake reputable brands and milk the reputation of original brands to sell low-quality counterfeit goods. 

Phishing scams

Those ads trick Instagram users into revealing their personal information, such as passwords or bank details, for identity or money theft. They can direct people to fake login or customer support pages.

>>> Read more: 3rd Party Instagram App Ad Blocker: 5 Best Apps In 2024 + Additional Tips

Are Instagram Ads Scams: 10 Signs To Watch Out For

Identifying Instagram ad cams can be tricky, but there are some telltale signs to watch out for:

1. The account that runs the ad doesn’t feature a blue verification checkmark.
2. The account username is similar to a reputable brand but with slight misspellings or additions.
3. The account has a huge number of followers but low engagement or inconsistent posting history.
4. The ad links to a suspicious website that usually looks like a reputable online store but with an unusual-looking URL or spelling errors. 
5. Too good to be true offers and extremely discounted prices.
6. Unrealistic or exaggerated claim.
7. Time-limited promotions or number-limited offers.
8. Request for full payment upfront.
9. Unfamiliar payment methods.
10. Most comments are negative or they are all hidden.

In Vietnam, we have a mantra to spot fraudulent ads: The only things that drop from the sky are rain and bird poop. It means there is no such thing as a free lunch. 

So the next time you come across an ad that reads: You are one of the 10,000 lucky people who’ll get an iPhone 16 Pro for just $2… like the one below, know that it’s definitely a scam!

Avoiding Instagram Ad Scams: 4 Important Precautionary Steps

If you don’t want to become the next victim of scammers, exercise caution when purchasing from Instagram ads. 

Here are some precautionary steps you should take:

Step 1: Check the account’s legitimacy 

Ensure that the account running the ad is legitimate. It should have a verified badge, real followers, and a full bio with the website and contact info. Misspellings and inconsistent posting history are red flags.

Step 2: Check the comment section

Look for comments from other users on the ad to see if people react positively or negatively to it. Notice the usernames and writing styles because scammers can also buy fake comments on Instagram. If the comment section is hidden or disabled, it may be a scam.

Step 3: Check the landing page

A reliable landing page should include no grammatical errors or typos, genuine testimonials, and case studies. There should also be clear contact information, return and service policies, trust badges, etc.

Watch out for suspicious domains, spelling mistakes, excessive uses of urgency or scarcity, or requests for excessive personal information.

Step 4: Research the product

Don’t buy impulsively. Google information about the product or service that the ad promotes before you take out your wallet. 

Additional Tips To Protect Yourself From Instagram Scam Ads

Equip yourself with the right tools to fight back against Instagram ad scams.

Trust your gut

Believe in your intuition. Ask yourself: Are these Instagram ads scams? If your inner voice says yes, they probably are. 

Turn on 2-factor authentication

Secure your Instagram account with 2-actor authentication to protect your personal information from phishing scams

Here is how to turn on 2-factor authentication: 

• Open the Instagram app and tap your profile picture in the lower right.
• Tap the hamburger icon to open Settings and Activity.
• Select Accounts Center > Password and Security.
• Select Two-factor authentication.
• Choose the account.
• Choose a security method to add. 

Report possible Instagram ad scams

Last but not least, if you suspect any Instagram ad that can be a scam, report it to the platform by following these steps:

• Click the profile of the account that runs the ad.
• Tap the three-dot icon on the top right.
• Select Report > Report account > It’s posting content that shouldn’t be on Instagram > Misleading or possible scam.

Previous post: How To Resume An Instagram Ad: A Quick Handy Guide For 2024

The Bottom Line 

Are Instagram ads scams? Not necessary, but it’s true that many scammers are using fake ads to deceive users. By understanding the nature of ads and staying alert, you can reduce your risk and shop from Instagram ads safely. Remember, knowledge is your strongest defense. Follow GDT Agency for more useful tips and advertising insights.

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