rewrite this title Rising crypto scams in France trigger crackdown by authorities

The rise of crypto has become a breeding ground for financial scams in France, contributing to a surge in fraudulent activity that has authorities scrambling to protect consumers.

The Paris Public Prosecutor’s Office, along with regulatory bodies like the AMF and ACPR, are particularly concerned about the growing number of schemes involving bogus crypto investments.

Proliferation of scams

The ACPR reported that false savings accounts cost victims an average of €69,000 in the first three quarters of 2024, while false loans resulted in average losses of €19,000. Crypto-asset scams, which have grown significantly since mid-2023, have led to an average loss of €29,000, according to the AMF.

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, drawn by social media promotions and promises of quick profits.

Fraudsters are increasingly impersonating public authorities and financial institutions. One-third of identity theft scams reported to the AMF involved fraudulent use of the regulator’s identity. Scammers also exploit AI-generated content, including deepfake videos and fabricated news articles, to promote false investment opportunities.

A newer tactic, dubbed “square fraud,” involves scammers posing as public officials to contact victims of previous scams, offering to recover lost funds in exchange for upfront fees.

Crackdown

Authorities are responding 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 are actively blacklisting unauthorized crypto entities and working with law enforcement to prosecute scammers.

The Paris Public Prosecutor’s Office has emphasized its commitment to cracking down on 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 safeguarding private keys and personal information are essential precautions. As always, if an investment opportunity seems too good to be true, it probably is.