© 2020, Springer Nature Singapore Pte Ltd. Privacy and Security are two major challenges faced by users on social media today. These challenges are experienced in diverse ways and forms by different types of users across the web. While technological solutions are usually implemented to address them, the effects have proven to be limited so far. Despite continuous deployment of technological solutions, the need to evaluate socio-economic impacts of these challenges have also become more imperative. Hence, this paper provides a critical review and analysis of socio-economic impacts of these social media challenges. The research findings reveal significant levels of negative socio-economic impacts and provides an evaluation framework towards defining the scope, thereby identifying appropriate measures for both addressing the challenges and curbing the socio-economic impacts. The findings also demonstrate the need for solutions beyond the use of technology, to employing and deploying solutions from social sciences which deals with behavioral issues and how to address them.