Crypto has become the breeding ground of financial scams, and has contributed to a rise in fraudulent activities that have authorities scrambling.
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.
The 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 BVA Xsight survey for AMF found that 3,2% of French adults were victims of financial fraud in 2024. This is nearly triple the 1.2% recorded in 2021. Social media and the promise of fast profits are what attracts young men below 35.
The fraudsters impersonate public officials and financial institutions more often. One-third of identity theft scams reported to the AMF involved fraudulent use of the regulator’s identity. Scammers use AI-generated material, such as deepfake news articles and fake videos, to spread false information about investment opportunities.
A newer tactic, dubbed “square fraud,”A scammer poses as a public official to reach out to victims of scams in the past, and offers to help recover funds in return for a small upfront fee.
Crackdown
The authorities are focusing on both prevention and enforcement. The public is being made aware of the dangers of cryptocurrency scams.
AMF and ACPR have been actively blacklisting crypto entities that are not authorized and are working with the law enforcement community to bring scammers to justice.
The Paris Public Prosecutor’s Office has emphasized its commitment to cracking down on crypto fraud and protecting consumers in the evolving digital landscape. Customers are advised to use extreme caution in making any crypto investment.
It is important to take precautions such as conducting thorough research, verifying platforms via official channels, protecting private keys, and protecting personal data. If an investment seems to good to be real, then it most likely is.
Posted In: France, Crime, Crypto, Featured, Hacks, Scams The Author 
Assad Jafri
AJ is a dedicated journalist who has spent over a ten-year period honing his craft in various countries. Specialized in financial journalism and now focused on crypto-reporting.
Email @Saajthebard on LinkedIn Editor
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