France Faces €500M Annual Losses Due to Crypto Scams: AMF Report
Financial scams in France are surging, with crypto-related fraud emerging as a major contributor to the staggering €500 million annual losses reported by the Autorité des Marchés Financiers (AMF).
To tackle this growing threat, French authorities are ramping up efforts in collaboration with key institutions, including the Paris Public Prosecutor’s Office, the Autorité de Contrôle Prudentiel et de Résolution (ACPR), and the Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes (DGCCRF).
A Persistent Threat Despite Fewer Complaints
Although the number of reported complaints has declined, the AMF highlights that the overall scale of financial fraud remains significant. Scammers are increasingly leveraging modern tools such as social media, identity theft, and deepfake technology to deceive victims. Fraudsters employ tactics like fake press articles and impersonations of government agencies, posing a serious risk to public trust.
Key Findings: Who Is Affected and How?
The Paris Public Prosecutor’s Office estimates that €500 million is lost annually to financial scams, with a marked rise in crypto-related fraud since mid-2023. By November 2024, the average scam victim had lost €29,000, with false savings accounts leading to even steeper average losses of €69,000.
A September 2024 BVA Xsight survey conducted for the AMF revealed troubling trends:
- Victim Demographics: 3.2% of French adults have fallen victim to financial scams—a threefold increase since 2021.
- High-Risk Group: Men under 35 are disproportionately targeted, drawn by promises of quick wealth and an overconfidence in their investment knowledge.
Fraudsters exploit these vulnerabilities through platforms like social media, offering seemingly lucrative yet fraudulent investment opportunities.
Alarming Trends in Fraudulent Tactics
Identity theft scams are on the rise, with criminals impersonating financial institutions, the AMF, and even government agencies. Advanced methods, including AI-generated deepfake videos and fake celebrity endorsements, are being used to legitimize fraudulent crypto platforms.
Additionally, scammers have developed tactics like:
- Fake Advisors: Posing as fraud prevention experts to gain victims’ trust and authorize unauthorized transactions.
- Square Fraud: Retargeting victims of previous scams by impersonating officials who promise to recover lost funds in exchange for further fees, leading to compounded losses.
Strengthened Regulatory Measures and Public Awareness
French regulators have intensified their crackdown on fraudulent schemes. Since January 2022, the AMF and ACPR have:
- Blacklisted nearly 5,000 unauthorized investment platforms.
- Blocked access to 350 fraudulent websites.
Law enforcement has also made significant strides. Section J2 of the Paris Public Prosecutor’s Office seized over €645 million in criminal assets since 2020, with €268 million recovered in 2024 alone.
Public awareness campaigns are central to these efforts. In 2024, the AMF and DGCCRF launched initiatives targeting young investors through social media. Regulators are also scrutinizing influencers who promote unauthorized platforms, with the DGCCRF inspecting 30 operators and issuing legal actions against 10.
The AMF’s Warning
The AMF advises the public to stay alert and avoid offers that seem “too good to be true.” With ongoing vigilance and collaborative regulatory actions, France aims to stem the tide of financial fraud and safeguard its citizens from predatory schemes.
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