France says adieu to €500 Million lost to financial scams

French authorities are approaching 2025 with heightened vigilance as financial fraud schemes reach a fever pitch, draining the country of €500 million annually. A combination of advanced scams involving crypto, fake savings accounts, identity theft, AI, and social media have all contributed, as France’s version of the SEC, the AMF (Autorité des Marchés Financiers) urges to follow its updated guidelines and remain on high alert for financial fraud heading into 2025. 

Crypto Considered High Risk Under French Law

Of the medley of sophisticated scams taking place, fraudulent savings accounts and phony cryptocurrency investments seem to be the most pervasive. According to the authorities, victims lose an average of €69,000 to false savings accounts, €29,000 to cryptocurrency scams, and €19,000 to fake loans. A survey conducted by the AMF found that the number of French adults swindled by financial scams has tripled since 2021.

An Unlikely Target

While many associate financial fraud and identity theft victims with the elderly population, these advanced scams prey on an unlikely demographic; males under the age of 35. Tapping into this group’s propensity for quick returns and blind trust in cryptocurrency, unconventional investment options, and social media promoted financial advice, young French males are attracted to the carefully crafted scripts used to drain their accounts. 

Scams 2.0

Deepfake technology has greased the wheels of many of these scams, misleading victims by posing as government officials to gain trust and access to login information used to steal victims’ money. Scammers have also utilized social media as a vehicle to carry out their crimes, often conning influencers to promote dodgy investments and deals. As government officials crack down, they’ve upped the ante for any influencers (often unknowingly) involved in said scams by obligating them to cancel endorsements for blacklisted platforms and cease the promotion of risky financial services like crypto.

In fact, new legislation now considers crypto a high risk financial product, sharing the classification with pharmaceuticals, gambling, and aesthetic surgery, a category banned from promotion by social media influencers by the government as of 2023. The punishment for breaking the new law includes a fine of €30,000, up to two years in jail, and (gasp) a suspension of their social media accounts. 

Another trend authorities have reported is called a “scam on scam” or “square fraud”, where victims of financial loss are contacted by perpetrators under the guise of government bodies promising to return the lost funds. Once they’ve gained the trust and login details of desperate victims, they double down on the initial crime, draining even more money.

A Good Defense is the Best Offense

In order to take down the fraudsters, French authorities have published a new set of regulations and are investing in awareness campaigns to keep the public cognizant and critical of any attempts at financial crime. Among the suggestions, the AMF asks its people to consult registries, check their white list of authorized entities, protect personal data, research investments, and ensure bank’s identity has not been stolen. Their overarching advice boils down to a simple tenant, if it sounds too good to be true, it most likely is.  Doing business or investing in French entities? Do your due diligence with Intelligo and avoid being the next victim of mounting financial crime.  Our platform can help verify the legitimacy of businesses around the world to make sure that you and your clients are protected from fraud.  Book your free demo today.