The Rise of Crypto Scams in France
With the increasing popularity of cryptocurrencies, France has seen a rise in financial scams that are targeting unsuspecting consumers. Authorities are taking action to protect individuals from falling victim to fraudulent schemes.
Proliferation of Scams
- False savings accounts costing victims an average of €69,000
- False loans resulting in average losses of €19,000
- Crypto-asset scams leading to an average loss of €29,000
According to the AMF, the number of crypto scams has been on the rise since mid-2023, with fraudsters targeting individuals through social media promotions and promises of quick profits. Young men under 35 are particularly vulnerable to these schemes.
Identity theft scams are also prevalent, with fraudsters impersonating public authorities and financial institutions. Scammers are using AI-generated content such as deepfake videos and fabricated news articles to deceive individuals into investing in fake opportunities.
Another tactic known as “square fraud” involves scammers posing as public officials to offer to recover lost funds from previous scams in exchange for upfront fees.
Crackdown
Authorities are taking a proactive approach to combatting these scams through prevention and enforcement efforts. Public awareness campaigns are being conducted to educate consumers about the risks of crypto scams and the importance of verifying platforms and offers.
The AMF and ACPR are working together to blacklist unauthorized crypto entities and collaborate with law enforcement to prosecute scammers. The Paris Public Prosecutor’s Office is also committed to cracking down on crypto fraud and safeguarding consumers in the digital landscape.
Consumers are advised to conduct thorough research, verify platforms through official channels, and protect their private keys and personal information. It is important to exercise caution when considering crypto investments, as if an opportunity seems too good to be true, it likely is.
