Missed red flags: How this CFP lost $3,000 to an Instagram scam - CNBC

This 27-year-old finance pro lost $3,000 to an Instagram scam — here are the 4 red flags he missed

In a world where Elizabeth Holmes, Anna Delvey and the Tinder Swindler co-exist, it seems like scammers are waiting for unsuspecting victims around every corner. Sometimes, those victims are even sophisticated finance professionals.

Andrew, a 27-year-old certified financial planner, learned this lesson the hard way last month when he was conned out of $3,000 by someone impersonating an investment advisor on Instagram. According to cybersecurity experts, Andrew – who asked for his last name to be withheld to protect his job security – is far from alone.

More than 95,000 people lost a collective $770 million in scams or hacks initiated on social media platforms in 2021, according to the Federal Trade Commission. Such issues “will become part of our daily life,” Theresa Payton, CEO of Fortalice Solutions and a former White House CIO, tells CNBC Make It. “We’re going to have to put up with them, just as there used to be people trying to cash out fake checks.”