Crypto scams cost French victims €500m annually, AMF says

French authorities are grappling with an alarming rise in crypto scams that are causing an estimated €500 million in annual losses.

Financial scams continue to inflict heavy losses on French consumers; The Paris Public Prosecutor’s Office estimates that victims lose at least 500 million euros every year.

The average loss for victims of financial fraud in 2024 is €29,000, the Autorité des Marchés Financiers announced in a press release on Thursday, December 26. The regulator said most of these scams target crypto investors, with scammers using fake celebrity endorsements and investment platforms.

“Fake videos and press articles are being used to replicate the physical features of celebrities, sometimes using artificial intelligence. These celebrities then inadvertently reveal the source of their wealth, thanks to an alleged crypto asset trading offer, which turns out to be a complete scam.”

Financiers of the Autorité des Marchés

Although the number of complaints has decreased, possibly due to compensation programs and law firms grouping cases together, the AMF says French authorities are still taking action against fraudsters. The press release states that the AMF and the Autorité de Contrôle Prudentiel et de Résolution have blacklisted approximately 5,000 unauthorized market participants since 2022. Both worked to block around 350 scam websites.

In November 2023, an AMF survey showed that the French public owned more crypto than stocks or exchange-traded funds. The survey found that 9% of people own cryptocurrencies, 7% own stocks, and 2% own ETFs.

The AMF urged the public to be vigilant, warning against offers that seem “too good to be true” and advising individuals to consult official records before investing.