The rise of crypto has become a breeding ground for financial scams in France, contributing to a wave of fraudulent activity that has authorities scrambling to protect consumers.
The Paris Public Prosecutor’s Office, along with regulators such as the AMF and ACPR, are particularly concerned about the growing number of schemes involving fake crypto investments.
Proliferation of scams
The ACPR reported that fake savings accounts cost victims an average of €69,000 in the first three quarters of 2024, while fake loans resulted in an average loss of €19,000. Cryptocurrency scams, which have increased significantly since mid-2023, have resulted in an average loss of €29,000, according to the AMF.
A survey conducted by BVA target group, attracted by social media promotions and promises of quick profits.
Fraudsters are increasingly posing as governments and financial institutions. One third of identity theft cases reported to the AMF involved fraudulent use of the supervisor’s identity. Scammers are also exploiting AI-generated content, including deepfake videos and fabricated news articles, to promote fake investment opportunities.
A newer tactic, called “quadratic fraud,” involves scammers posing as government officials to contact victims of previous scams and offering to recover lost money in exchange for upfront fees.
Crackdown
The authorities respond with a dual focus on prevention and enforcement. Public awareness campaigns aim to educate consumers about the risks of crypto scams and the importance of verifying platforms and offers.
The AMF and ACPR actively blacklist unauthorized crypto entities and work with law enforcement to prosecute scammers.
The Paris Public Prosecutor’s Office has emphasized its commitment to tackling crypto fraud and protecting consumers in the evolving digital landscape. Consumers are urged to exercise extreme caution when considering crypto investments.
Thorough research, verification of platforms through official channels, and protecting private keys and personal information are essential precautions. As always, if an investment opportunity seems too good to be true, it probably is.
