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How Influencer Marketing Fraud Scams Businesses

Before paying a social media influencer for posts, discover if they are who they say they are.

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Written by: Julie Thompson, Senior WriterUpdated Jun 25, 2025
Gretchen Grunburg,Senior Editor
Business.com earns commissions from some listed providers. Editorial Guidelines.
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Businesses often strive to attract and retain millennials, Gen Zers and younger consumers to take advantage of their digital fluency, brand loyalty and long-term purchasing power. To connect with these social media-savvy audiences, many brands turn to influencers — highly recognizable online personalities with dedicated followings. However, not all influencer partnerships are what they seem. Behind the curated posts and polished personas lies a growing issue: influencer marketing fraud.

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Some influencers pad their numbers — from fake followers to exaggerated engagement — creating the illusion of influence that doesn’t quite match reality. This can leave brands spending big on partnerships that don’t deliver. We’ll break down what influencer marketing fraud looks like and how to spot the red flags before you invest.

What is a social media influencer?

A social media influencer is an online personality who has built a loyal following of interested, engaged users who view them as an expert, leader or authority in a specific niche.  

Influencers can be household names, such as pop stars, actors, or professional athletes, or they may be lesser-known individuals who are well-regarded within specific online communities.

Businesses of all sizes work with social media influencers to promote their products or services and get the word out about their brand. When a well-liked influencer shares genuine excitement about a product, their followers often take notice — and take action. That kind of trust is the foundation of influencer marketing, and when it’s done thoughtfully, it can be a powerful way to grow your brand.

Influencer types

Not all influencers operate at the same scale, and that’s a good thing. Depending on your business size, goals and target audience, a niche, engaged influencer can be more valuable than a household name with millions of followers. Here’s a breakdown of the main types:

  • Nanoinfluencers: Nanoinfluencers typically have 1,000 to 10,000 followers. What they lack in reach, they often make up for in authenticity, tight-knit engagement and highly loyal audiences.
  • Microinfluencers: Microinfluencers usually have 10,000 to 100,000 followers. They often focus on a specific niche — think wellness coaches, parenting bloggers or sneaker enthusiasts — and are known for building strong relationships with their communities. 
  • Macroinfluencers: These heavy hitters have between 100,000 and 1 million followers and are often regarded as experts or trendsetters in their arenas (e.g., makeup, fashion, cooking, etc.). They can help brands boost online awareness while still connecting with a somewhat targeted audience.
  • Megainfluencers (or celebrity influencers): These are the prominent figures with 1 million or more followers, including famous athletes, actors and internet personalities. Think Cristiano Ronaldo or Kim Kardashian. Their impressive reach comes with a hefty price tag, and while engagement may be lower and less personal, the brand exposure is unmatched. 

Small and midsize businesses are most likely to work with nano- and microinfluencers, who offer strong engagement and the most bang for their buck.

Did You Know?Did you know
According to Influencer Marketing Hub's 2025 benchmark report, most Instagram influencers (over 75 percent) are nanoinfluencers with between 1,000 and 10,000 followers. Microinfluencers make up the next biggest group (14 percent).

What is influencer marketing fraud? 

Influencer marketing fraud occurs when a social media influencer uses deceptive practices to gain a brand’s trust and take money they haven’t truly earned, often without delivering any real value in return. In these cases, businesses invest in partnerships with no chance of delivering the hoped-for results. These fraudsters may:

  • Buy fake followers to misrepresent their audience reach
  • Use bot activity to inflate likes, views or comments
  • Manipulate engagement metrics to appear more influential than they are

“We define influencer marketing fraud as the practice of an influencer artificially inflating their follower count or engagement rates — often through bots or fake accounts — with the intent to sell this ‘influence’ to brands for a fee,” explained Megan Hueter, EVP, head of digital at MikeWorldWide and managing director at Everywhere.

With the industry’s rapid growth and seemingly endless opportunities to generate revenue — and with over 80 percent of marketers considering influencer marketing a highly effective strategy, according to the Influencer Marketing Hub report cited above — opportunities for fraud are also exploding.

“The core issue here is that the influence being offered is not authentic,” Hueter said. “Instead, it’s manufactured through tactics like follower bots, engagement pods or fake profile farms. Brands that pay for these inflated metrics are essentially investing in false reach and engagement.”

Bottom LineBottom line
Being aware of and vigilant about influencer marketing fraud can help protect your business from wasted ad spend, or worse, damage to your brand reputation.

How to spot a fake influencer

It’s not always easy to distinguish between a legitimate social media influencer and a fraud looking to take a piece of your social media marketing budget. That’s why it’s important to look for red flags that may signal an influencer isn’t as credible or effective as they claim.

Consider the following red flags:

Poor-quality or unoriginal content

One of the first signs to watch for is subpar content on the influencer’s platforms. True influencers intentionally cultivate their social media presence with high-quality, often original content. They have a unique style and consistently share relevant material — including curated reposts — that provides value to their target audience.

In contrast, fraudulent influencers often take shortcuts, relying on low-effort or even stolen content.

“A feed full of reposts, inconsistent visuals or stolen content is a red flag,” cautioned Kaleb McAfee, senior integrated social media manager at Crowe PR. “Real influencers usually have a clear aesthetic, a recognizable tone and content that reflects their niche and audience consistently.”

Fake or little engagement

A fraudulent influencer may appear to have a large, loyal following. But look a little closer, and you might notice something’s off: Their so-called fans aren’t liking or commenting on posts, asking questions or interacting in any meaningful way.

When engagement is low or feels unnatural, it’s a major red flag that the followers may not be real and the “influencer” is a fraud.

“One of the clearest red flags is unusual engagement, especially in the comments section,” Hueter noted. “While it’s fairly easy to buy followers or likes today, purchasing convincing comment engagement is much harder.” 

Fraudsters are getting more sophisticated, so surface-level interactions might still look convincing. But those comments can be fake, too. “Often, fake comments come from accounts with no profile pictures, few or no followers, or suspicious patterns [unrelated] to the influencer’s typical audience,” Hueter explained. “Paying close attention to the quality of comments, not just the quantity of likes or followers, is one of the best ways to spot fraud.”

To confirm you’re working with someone legitimate, look for signs of genuine engagement. Do they ask their audience questions in posts or stories? Do they respond to comments regularly? These are good signs that the connection with followers is real.

Also, go beyond follower count and look at ratios. How many people is the influencer following compared to how many follow them? Is that ratio healthy and consistent? How many of their followers appear to come from regions known for bot activity?

FYIDid you know
When the partnership is authentic, content influencers can pay off for brands. According to Morning Consult's 2025 Influencer Guide, nearly half (45 percent) of social media users say they "often" or "sometimes" buy something after seeing a post about it.

Problematic account history

Will Ellis, owner of the security research group Privacy Australia, has studied identity theft prevention and recommends examining an influencer’s account history closely using a social media analytics tool like Social Blade. If you spot a sudden surge in either followers or engagement — but not both — over a short time, Ellis warned, it could be a sign that the influencer is buying social likes or followers.

McAfee agreed that sudden growth without context should raise eyebrows. “Sudden follower spikes without a clear trigger (like a viral moment), or new accounts with massive followings, are cause for concern,” McAfee cautioned. “Scrolling through older posts can give a sense of organic growth and consistency.”

A lack of verification

Social media platforms employ various verification methods and display symbols, such as Instagram’s blue-and-white checkmark, to signal and confirm that the user is who they claim to be, namely, a real person or brand, not a bot or impersonator. A missing verification badge doesn’t always mean someone is fraudulent, but it can be a reason to be a bit suspicious.

However, this red flag comes with caveats. Many nano- and microinfluencers may not be verified, or an influencer may simply choose not to pursue verification. Proceed cautiously and look for other signs that you’re dealing with a legitimate person:

  • Check the influencer’s bio
  • Confirm contact information 
  • See if their social media presence is consistent across platforms

The more active and transparent they are online, the easier it will be to communicate and collaborate.

“While not all large creators are verified, especially now that some platforms allow paid verification, deceptive handles like @official_johndoe are worth double-checking,” McAfee advised. “Cross-referencing their presence across platforms can help confirm legitimacy.”

No solid network

Influencers aren’t typically known for keeping to themselves, especially online. Genuine influencers tend to be well-connected, following, being followed by, and regularly engaging with other respected creators in their niche. Fraudulent influencers, on the other hand, often lack those kinds of meaningful connections.

“A lack of interaction or collaboration with other creators, brands or audience members is another red flag,” McAfee cautioned. “Real influencers are embedded in their niche communities. You’ll often see them tagged in other posts, responding to comments, or appearing in branded content.”

When evaluating a potential partner, look for signs of genuine relationships, such as photos, videos or comments from other influencers in the same space. McAfee recommends paying special attention to the quality of engagement from peers.

“Watch out for high like counts but surface-level or repetitive comments,” McAfee said. “Genuine followers engage meaningfully. They tag friends, ask thoughtful questions or reference previous content.”

TipBottom line
After working successfully with one influencer, you may be able to leverage that strategic partnership as an icebreaker with their colleagues.

The true cost of influencer fraud 

Scams and fraud affect nearly every industry, and influencer marketing is no exception. In fact, a Federal Trade Commission report found that 2.6 million people reported fraud to the agency in 2024, with reported consumer losses topping $12.5 billion.

With fraud so prevalent, marketers must proceed cautiously when it comes to social media partnerships. Consider the costs of falling victim to influencer fraud:

  • Monetary losses: Hueter explained that pinning down an exact dollar amount lost to influencer fraud is difficult, but there’s no doubt it can blow through a marketing budget. “Without the right tools and an informed team behind you, brands can easily spend significant amounts on fake or fraudulent influencers without realizing it,” Hueter cautioned. “The key is to acknowledge that influencer fraud exists and to prioritize proper research and due diligence to protect your investment.” McAfee agreed, adding, “Financially, brands can lose thousands of dollars per campaign on inflated metrics, fake engagement or misaligned audiences.”
  • Loss of trust and reputation: McAfee noted that the real danger of influencer fraud is a loss of trust and brand damage. “The cost of influencer fraud is more than just wasted budget; it can be deeply damaging to a brand’s reputation and consumer trust,” McAfee said. 
  • Damaged relationships: McAfee added that working with fraudulent influencers can also weaken a brand’s connection to its customers. “When followers realize an influencer isn’t genuine or that a brand didn’t do its due diligence, it can create backlash, make the brand seem out of touch and erode credibility,” McAfee warned. “In a landscape where authenticity drives loyalty, even one questionable partnership can harm public perception and long-term brand equity.” 
  • Marketing miscues: McAfee pointed out that influencer fraud doesn’t just waste money — it can throw off your entire marketing strategy. “It skews your data, drags down ROI and causes you to miss key performance indicators,” McAfee said. “When the numbers are based on fake engagement, it’s nearly impossible to make informed decisions for future campaigns.”

Influencer marketing works, but beware of its risks

Despite the risks, influencer marketing remains a powerful way to reach new audiences and build trust. Many platforms now use AI and other tools to weed out fake followers and surface truly influential voices. Still, the creator economy has work to do in policing bad actors — and brands must stay vigilant. Before you invest in a partnership, make sure you’re not buying into an illusion.

Amanda Hoffman contributed to this article. 

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Written by: Julie Thompson, Senior Writer
With nearly two decades of experience under her belt, Julie Thompson is a seasoned B2B professional dedicated to enhancing business performance through strategic sales, marketing and operational initiatives. Her extensive portfolio boasts achievements in crafting brand standards, devising innovative marketing strategies, driving successful email campaigns and orchestrating impactful media outreach. At business.com, Thompson covers branding, marketing, e-commerce and more. Thompson's expertise extends to Salesforce administration, database management and lead generation, reflecting her versatile skill set and hands-on approach to business enhancement. Through easily digestible guides, she demystifies complex topics such as SaaS technology, finance trends, HR practices and effective marketing and branding strategies. Moreover, Thompson's commitment to fostering global entrepreneurship is evident through her contributions to Kiva, an organization dedicated to supporting small businesses in underserved communities worldwide.