The rise of cryptocurrency has unfortunately led to a rise in financial scams in France, with authorities working tirelessly to protect consumers from fraudulent activities. The Paris Public Prosecutor’s Office, along with regulatory bodies such as the AMF and ACPR, are deeply concerned about the increasing number of scams involving fake crypto investments.
According to the ACPR, false savings accounts have cost victims an average of €69,000 in losses in the first three quarters of 2024. False loans have resulted in average losses of €19,000, while crypto-asset scams have led to an average loss of €29,000, as reported by the AMF. These scams have been on the rise since mid-2023, preying on unsuspecting individuals looking to invest in cryptocurrencies.
A survey conducted by BVA Xsight for the AMF revealed that 3.2% of French adults fell victim to financial scams in 2024, nearly tripling from 1.2% in 2021. Young men under 35 are the most targeted demographic, often lured in by social media promotions and promises of quick profits. Fraudsters have been known to impersonate public authorities and financial institutions, with one-third of identity theft scams reported to the AMF involving fraudulent use of the regulator’s identity.
In addition, scammers are utilizing AI-generated content, such as deepfake videos and fabricated news articles, to promote false investment opportunities. A newer tactic known as “square fraud” involves scammers posing as public officials to contact victims of previous scams, offering to recover lost funds in exchange for upfront fees.
Authorities are taking action to combat these scams, focusing on both prevention and enforcement. Public awareness campaigns are being launched to educate consumers about the risks of crypto scams and the importance of verifying platforms and offers. The AMF and ACPR are actively blacklisting unauthorized crypto entities and collaborating with law enforcement to prosecute scammers.
The Paris Public Prosecutor’s Office has made it clear that they are committed to cracking down on crypto fraud and safeguarding consumers in the ever-evolving digital landscape. Consumers are advised to exercise caution when considering crypto investments, conducting thorough research, verifying platforms through official channels, and protecting private keys and personal information. Remember, if an investment opportunity seems too good to be true, it probably is. Stay vigilant and informed to protect yourself from falling victim to financial scams in the crypto space.