Crypto Scams: A Major Driver of France’s €500 Million Fraud Epidemic

French authorities are stepping up their fight against an alarming rise in financial scams, which are becoming increasingly sophisticated. According to the Paris Public Prosecutor’s Office and France’s financial and consumer protection agencies, fraudulent schemes involving fake loans, crypto investments, and bogus savings products cost victims around €500 million annually.

A recent BVA Xsight survey reveals that 3.2% of French citizens fell victim to scams in 2024, up from just 1.2% in 2021. Young men under 35, often lured by social media “get-rich-quick” schemes, make up a significant portion of the victims. Average losses are staggering, ranging from €19,000 for fake loans to €69,000 for fraudulent savings accounts.

Scammers are increasingly impersonating trusted entities such as authorities, financial institutions, and celebrities. Leveraging artificial intelligence to enhance their schemes, they use tactics like “fake advisor” calls and “square fraud,” where they target victims a second time under the pretense of recovery services.

To counter these threats, French authorities have blacklisted 5,000 unauthorized entities since 2022, blocked nearly 350 fraudulent websites, and initiated public awareness campaigns. In international fraud cases, such as OmegaPro—a forex and crypto investment platform—€268 million in criminal assets have been seized this year alone.

The public is urged to remain vigilant by verifying financial offers, consulting official registers, and avoiding promises of unrealistically high returns. As the AMF states, “Prevention and vigilance are our strongest tools.”

Bitgalactic’s Take:

The surge in financial scams in France reflects global trends in crypto-related fraud. As the sector continues to grow, so do opportunities for bad actors. At Bitgalactic, we believe robust regulation, greater transparency in crypto projects, and community-driven vigilance are essential to safeguarding investors. While authorities are stepping up their efforts, individual awareness remains the first line of defense in protecting your investments.