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

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As a seasoned researcher with a keen interest in financial markets and digital assets, I find myself deeply concerned about the surge of crypto scams in France. With personal experiences that have involved navigating through the complexities of both traditional finance and cryptocurrencies, I can attest to the allure of investment opportunities that promise high returns. However, my years of study and observation have also taught me to be wary of offers that seem too good to be true.

Officials in France are struggling to deal with a concerning increase in cryptocurrency fraud cases, leading to approximately 500 million euros in yearly financial losses.

Yearly, French consumers suffer substantial financial losses due to fraudulent schemes, with the Paris Public Prosecutor’s Office approximating that victims lose a minimum of 500 million euros annually.

On December 26th, a Thursday press statement disclosed that the average financial scam victim in 2024 suffered a loss of approximately €29,000, according to the Autorité des Marchés Financiers. The majority of these deceitful schemes have been aimed at cryptocurrency investors, with con artists employing falsified celebrity endorsements and investment platforms as their methods, as the regulatory body noted.

By creating falsified videos and news articles, some individuals manipulate celebrity appearances using artificial intelligence. In these instances, the celebrities unknowingly expose details about their supposed wealth from a claimed cryptocurrency trading scheme. However, upon closer examination, this alleged wealth generation method is found to be fraudulent.

The Autorité des Marchés Financiers

Despite a decrease in reported complaints, French authorities continue to pursue action against fraudsters. Since 2022, the AMF and the Autorité de Contrôle Prudentiel et de Résolution have barred around 5,000 unauthorized market participants from operating. Additionally, they’ve managed to block approximately 350 fraudulent websites. The press release indicates this information.

By November 2023, a report from the AMF revealed that a higher number of French residents hold cryptocurrency compared to stocks or exchange-traded funds (ETFs). The survey indicated that approximately 9% of individuals own cryptocurrencies, while only 7% have stocks and a mere 2% possess ETFs.

As an analyst, I’d like to emphasize the importance of staying alert when it comes to investment opportunities. Be wary of deals that appear excessively attractive as they might be too good to be true. Always verify the authenticity of any potential investments by consulting official registries prior to committing your resources.

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2024-12-26 15:26