Victims of financial scams in France face annual losses exceeding €500 million, according to a recent report by four leading French authorities. Despite this staggering figure, the report noted a decrease in the number of fraud complaints, which may be due to increased use of civil compensation programs and the consolidation of complaints.
The study, conducted 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), identified several common types of scams. These include fraudulent loan offers, fake savings accounts, deceptive payment and insurance services, and misleading investments in green energy or cryptocurrency.
Scale of Losses
In 2024, victims of false savings accounts experienced the highest average loss, amounting to €69,000. Those scammed by fraudulent loan schemes lost an average of €19,000. By November 2024, the overall average financial loss per victim across all scams was calculated at €29,000. Crypto-related scams have seen a notable rise since mid-2023, further compounding the financial toll.
A survey involving 5,001 respondents revealed that 3.2% of the French population had fallen prey to financial scams, a number that has tripled over the past three years.
Evolving Fraud Tactics
Scammers have become increasingly sophisticated, exploiting victims with promises of guaranteed high returns and risk-free investments. A new trend, dubbed the “scam on scam” tactic, has emerged where fraudsters target victims of crypto scams by pretending to assist in recovering their losses in exchange for fees. In some cases, scammers impersonate officials from regulatory bodies.
Other methods include contacting victims under the guise of preventing fraud and requesting sensitive information like transaction approvals or account details. A more recent tactic involves sending couriers to collect victims’ “faulty” bank cards. Additionally, scammers have begun utilizing AI-generated videos featuring celebrities to promote fraudulent schemes. In one instance, Italian regulators took action against websites using the likeness of prominent government officials to mislead victims.
French Authorities Take Action
French regulators and law enforcement agencies are actively working to curb financial fraud. Since January 2022, the AMF and ACPR have blacklisted nearly 5,000 unauthorized entities and blocked around 350 fraudulent websites. Law enforcement efforts have resulted in the seizure of over €645 million in criminal assets since 2020, including €268 million in 2024 alone.
Authorities are also focused on public education, launching extensive fraud prevention campaigns to raise awareness and protect potential victims. These efforts underscore France’s commitment to combating the growing threat of financial fraud and minimizing its impact on citizens.
