Scammers Exploit Facebook Privacy Settlement with Fake Payout Emails

18 December 2025 Technology

WASHINGTON, D.C. — As millions of Facebook users await their payouts from a recent privacy settlement, cybercriminals have seized the opportunity to target recipients with fraudulent emails that closely resemble legitimate settlement notices. These fake messages, which urge users to “Redeem Virtual Card” payments, are designed to steal personal information by directing recipients to malicious websites.

The original Facebook privacy settlement arose after the social media giant faced accusations of mishandling user data, leading to an approved payout program administered by Kroll, a third-party settlement administrator. Legitimate emails come from the official address [email protected] and include personalized claimant IDs tied to the filed claims. However, scammers have crafted convincing counterfeit emails that lack these key identifiers and often feature suspicious links.

Arlene B., a recipient of one such email, shared her concerns after receiving a message purportedly from the “Facebook User Privacy Settlement Administrator” instructing her to click a button labeled “Redeem Virtual Card.” Cybersecurity expert Kurt Knutsson, known as “CyberGuy,” warns that these fraudulent emails exploit the urgency and confusion surrounding the payout process. “Scammers rely on confusion and urgency,” Knutsson explained. “They mimic the real payout notices to trick you into clicking.”

To avoid falling victim to these scams, recipients should carefully verify the sender’s email address, confirm the presence of a unique claimant ID, and scrutinize the URLs embedded in the email. Authentic payout links direct users to domains associated with Kroll or DigitalPay/Veritas, while suspicious or shortened URLs often indicate phishing attempts. Recipients are advised never to click on links in unsolicited emails demanding immediate action or additional confirmation.

The Federal Trade Commission (FTC) has long cautioned consumers about such schemes, especially in the wake of major settlements where scammers piggyback on legitimate communications. The FTC’s guidance emphasizes verifying official communications through trusted channels and avoiding clicking on unexpected links.

In addition to the FTC, the Cybersecurity and Infrastructure Security Agency (CISA) provides resources on recognizing and reporting phishing scams, underscoring the importance of vigilance in the digital age. Users can learn more about protecting themselves from phishing threats by visiting the CISA phishing awareness page.

Facebook’s settlement administrator, Kroll, has also issued warnings on its official site, advising claimants to watch for emails that do not include their claimant ID or that come from unfamiliar domains. The administrator’s official website, krollsettlementadministration.com, remains the safest portal for claimants to check the status of their payments.

With cybercrime on the rise, the Department of Justice (DOJ) continues to prioritize combating online fraud schemes. The DOJ’s efforts include public education campaigns and enforcement actions against perpetrators of such scams. More information about ongoing initiatives can be found at the DOJ Computer Crime and Intellectual Property Section website.

As the Facebook settlement payout process continues, recipients are urged to remain cautious and verify all communications carefully. Clicking on fraudulent links can lead to identity theft, financial loss, and other serious consequences. Consumers who suspect they have received a scam email should report it promptly to authorities and avoid engaging with the message.

For further guidance on identifying and avoiding phishing scams, the FTC’s official page offers comprehensive tips at How to Recognize and Avoid Phishing Scams. Staying informed and vigilant remains the best defense against these increasingly sophisticated cyber threats.

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Written By
Maya Chen reports on international politics, conflict and diplomacy. She specializes in explaining how global events shape U.S. security, trade and migration, and how decisions made abroad ripple into life at home.
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