French Authorities Report Annual Crypto Scam Losses Reach €500 Million
The French authorities report a continuous rise in crypto scams. The Paris Public Prosecutor's Office estimates that victims of financial fraud in France lose at least €500 million annually.
Research from the Autorité de Contrôle Prudentiel et de Résolution (ACPR) indicates that the average financial loss per victim was €69,000 for false savings accounts and €19,000 for false loans in the first three quarters of 2024. Many scams since mid-2023 have involved crypto assets. The Autorité des Marchés Financiers (AMF) reported an overall average loss from all scams of €29,000 by the end of November 2024.
A survey by BVA Xsight for the AMF found that 3.2% of French adults lost money due to fraudulent financial investment activities between September 2 and 16, 2024. Men under 35 were the most affected group, with 45% being victims. A common trait among these individuals is overconfidence in their investment knowledge when faced with unrealistic offers.
New Fraud Tactics and the Role of AI in Deceptive Schemes
Authorities report that scammers use convincing arguments to lure victims into "guaranteed high-yield investments" promising easy wealth. They also deceive individuals into approving transactions or sharing login details under the guise of fraud prevention assistance.
Fraudsters employ sophisticated methods such as creating fake videos and press articles of celebrities, often aided by AI. These celebrities appear to endorse fictitious wealth derived from alleged crypto trading offers, which are scams. Authorities noted:
"The scammers' modus operandi is becoming more sophisticated. Fake videos and press articles replicate the physical characteristics of celebrities using artificial intelligence (AI). These celebrities inadvertently reveal the source of their wealth from a supposed crypto-asset trading offer, which turns out to be a scam. Some scammers impersonate reputable newspapers by posting ads or promotional press releases for false investment offers."
A new technique called "square fraud" or "scam on scam" has emerged, where victims of fake crypto sites are contacted by someone posing as a public authority offering recovery assistance for a fee.
Reports indicate a decrease in complaints, possibly due to individuals utilizing civil compensation schemes or law firms consolidating cases. Authorities emphasize that prevention is key to combating scams and have initiated awareness campaigns to educate the public against quick-rich schemes promoted by fraudsters.