The rise of cryptocurrencies has become a hotbed for financial fraud in France, leading to a surge in fraudulent activity that has authorities scrambling to protect consumers.
The Paris Public Prosecutor's Office, as well as regulators such as the AMF and ACPR, are particularly concerned about the rise in schemes involving fake crypto investments.
spread of fraud
ACPR reports that fake savings accounts cost victims an average of €69,000 in losses in the first three quarters of 2024, while fake loans caused an average loss of €19,000. . According to the AMF, crypto fraud has increased significantly since mid-2023, resulting in an average loss of €29,000.
According to a study carried out by BVA Xsight for AMF, 3.2% of French adults will be victims of financial fraud in 2024, almost tripling from 1.2% in 2021. Quick profit.
Scammers impersonating public organizations and financial institutions are on the rise. One-third of identity theft frauds reported to the AMF involved the unauthorized use of regulators' personal information. Scammers also exploit AI-generated content such as deepfake videos and fabricated news articles to promote fake investment opportunities.
In a new scheme called the “Square scam,” scammers pose as government officials and contact previous victims of fraud, offering to recover lost funds in exchange for an advance payment.
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Authorities are responding with a dual focus: prevention and enforcement. The public awareness campaign aims to educate consumers about the risks of cryptocurrency fraud and the importance of verifying platforms and offers.
AMF and ACPR are actively blacklisting unauthorized crypto entities and working with law enforcement to prosecute fraudsters.
The Paris Public Prosecutor's Office is underscoring its commitment to cracking down on crypto fraud and protecting consumers in an evolving digital environment. Consumers are urged to exercise extreme caution when considering investing in cryptocurrencies.
Thorough research, platform verification through official channels, and protection of private keys and personal information are essential precautions. As always, if an investment opportunity seems too good to be true, it probably is.
