Children and adolescents interact in peer groups, which are known to influence a range of psychological and behavioral outcomes. In developmental psychology and related disciplines, social cognitive mapping (SCM), as implemented with the SCM 4.0 software, is the most commonly used method for identifying peer groups from peer report data. However, in a series of four studies, we demonstrate that SCM has an unacceptably high risk of false positives. Specifically, we show that SCM will identify peer groups even when applied to random data. We introduce backbone extraction and community detection as one promising alternative to SCM, and offer several recommendations for researchers seeking to identify peer groups from peer report data.