France Cracks Down on Rising Crypto Scams

The rise of cryptocurrency in France has unfortunately also fueled a surge in financial scams, leaving regulators and authorities scrambling to protect the public.

In particular, crypto-related fraud has escalated, with regulators like the AMF and ACPR sounding the alarm over the growing prevalence of fake investment schemes.

Fraudulent schemes targeting crypto investors have reached alarming levels. The ACPR recently reported that fake savings accounts have caused average losses of €69,000, while fraudulent loan schemes resulted in €19,000 losses. However, crypto scams have been the most costly, with victims losing an average of €29,000. A survey by BVA Xsight revealed that nearly 3.2% of French adults fell for such scams in 2024, a significant increase from just 1.2% in 2021. Young men, particularly those under 35, are the primary targets, often lured in by social media ads promising quick profits.

Scammers are also becoming more sophisticated, using AI tools like deepfakes to promote fraudulent crypto opportunities. There has been an alarming rise in “square fraud,” where scammers pose as officials offering to recover lost funds from previous scams in exchange for upfront payments.

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In response to this surge in fraud, French authorities have ramped up efforts to educate the public about the risks of crypto scams. The AMF and ACPR are actively blacklisting unauthorized crypto platforms, and law enforcement is working to prosecute fraudsters. Public awareness campaigns are emphasizing the importance of verifying platforms and safeguarding personal information before investing in crypto. Authorities are also advising consumers to trust their instincts: if an offer seems too good to be true, it likely is.

Alexander Zdravkov