The Economics of Social Media Spam Bots: Infrastructure Costs and Profit Analysis

Abstract

Social media spam bots represent a thriving underground economy that undermines online trust and security. This paper provides the first comprehensive analysis of the infrastructure costs and profit returns associated with operating spam bot networks across hundreds of platforms. Using data from the Cambridge Online Trust and Safety Index (COTSI), dark web market analysis, and empirical studies of spam conversion rates, we quantify the hidden economics of online manipulation. We find that SMS verification costs for fake accounts range from $0.08 in Russia to $4.93 in Japan, with an average of approximately $0.50 globally. Botnets can be purchased outright for as little as $99 or rented for $30-$4,800 per month. Despite extremely low conversion rates (as low as 1 in 12.5 million emails for pharmaceutical spam), operations remain highly profitable due to negligible marginal costs. Our analysis reveals that crypto-related scams alone totaled $9.9 billion in 2024, while meme coin scammers can generate up to $20,000 daily from minimal initial investments of $500-$1,000. The asymmetric cost-benefit ratio—where spammers pay cents per victim while victims lose dollars—creates a powerful economic incentive that explains the persistence of these operations despite decades of countermeasures. We conclude with policy recommendations targeting SIM card regulation and payment processing bottlenecks as potential intervention points.

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cs.CR

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CC BY 4.0

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