The emergence of cryptocurrency has transformed into a fertile ground for financial fraud in France, contributing to an increase in deceptive practices that have prompted officials to take action to safeguard consumers.
The Paris Public Prosecutor’s Office, in conjunction with regulatory agencies such as the AMF and ACPR, is particularly alarmed by the escalating number of operations involving counterfeit cryptocurrency investments.
Proliferation of frauds
The ACPR disclosed that fraudulent savings accounts cost victims an average of €69,000 during the first three quarters of 2024, while fraudulent loans led to average losses of €19,000. Cryptocurrency scams, which have surged notably since mid-2023, have resulted in an average loss of €29,000, as reported by the AMF.
A survey conducted by BVA Xsight for the AMF unveiled that 3. 2% of French adults fell prey to financial deceptions in 2024, nearly tripling from 1. 2% in 2021. Young males under 35 comprise the most targeted group, enticed by social media advertisements and promises of swift profits.
Fraudsters are increasingly masquerading as public officials and financial institutions. One-third of identity theft scams reported to the AMF involved the fraudulent utilization of the regulator’s identity. Scammers also take advantage of AI-generated materials, including deepfake videos and fabricated news articles, to endorse nonexistent investment opportunities.
A newer strategy, referred to as “square fraud,” entails scammers posing as public officials to reach out to victims of prior scams, proposing to recover lost funds for an upfront fee.
Crackdown
Authorities are responding with a dual strategy focusing on prevention and enforcement. Public awareness initiatives aim to inform consumers regarding the hazards of cryptocurrency scams and the significance of verifying platforms and offerings.
The AMF and ACPR are actively compiling lists of unauthorized cryptocurrency entities and collaborating with law enforcement to prosecute scammers.
The Paris Public Prosecutor’s Office has reiterated its dedication to combatting cryptocurrency fraud and safeguarding consumers in the ever-evolving digital landscape. Consumers are urged to exercise considerable caution when contemplating cryptocurrency investments.
Comprehensive research, platform verification through official channels, and the protection of private keys and personal data are critical safeguards. As always, if an investment opportunity appears excessively favorable, it likely is not genuine.
French authorities are amplifying endeavors to mitigate the rise of cryptocurrency scams and fraudulent schemes that exploit consumer trust.
