Victims of financial fraud and scams in France lose at least €500 million annually, according to a report by four authoritative bodies in the country. However, the agencies observed a decline in the number of complaints from victims, which could be attributed to the use of a civil compensation scheme or the pooling of complaints.
The report by the Paris Public Prosecutor’s Office, the Autorité des Marchés Financiers (AMF), the Autorité de Contrôle Prudentiel et de Résolution (ACPR), and the Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes (DGCCRF) highlighted several prevalent financial scams in the country. These include bogus loan offers, false savings accounts, fraudulent payment and insurance services, and deceptive investments in green or crypto assets.
Massive Losses to Victims
The average loss per victim was highest for false savings accounts in the first three quarters of 2024 at €69,000, while victims of false loans lost an average of €19,000. By the end of November 2024, the overall average loss for all scams stood at €29,000.
The report also underscored that crypto scams have surged since the second half of 2023.
A survey of 5,001 participants revealed that 3.2 per cent of the French population had fallen victim to financial scams, a figure that has tripled in three years.
High Returns to Scamming the Scammed
Fraudsters have become increasingly sophisticated in their methods for targeting potential victims. Many are lured by promises of guaranteed high-yield investments with the appeal of “getting rich every time.”
A new “scam on scam” tactic has also emerged, where scammers approach crypto fraud victims, promising to recover lost funds in exchange for fees. These fraudsters even impersonate representatives of authorities and regulators.
Some scammers call potential victims claiming to “help” them prevent alleged fraud on their accounts, asking for transaction approvals or login details. A newer variant involves sending a courier to the victim’s home to collect a supposedly faulty bank card.
Additionally, many scammers use fake AI-generated videos of celebrities to deceive victims. Notably, the Italian regulator recently took action against websites using the likeness of the country’s Prime Minister and President to promote financial scams.
French Fight Against Scams
French authorities are actively combating the surge in financial fraud. Since 1 January 2022, the AMF and ACPR have blacklisted nearly 5,000 unauthorised “market participants” and blocked approximately 350 websites.
French law enforcement has also seized over €645 million in criminal assets since 2020, including €268 million in 2024 alone. Furthermore, agencies are running fraud prevention campaigns to protect potential victims.
This article was written by Arnab Shome at www.financemagnates.com.
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