AMF and French Authorities Issues Report on Growing Financial Scams: Annual Victim Losses Reach €500 Million

In response to the escalating phenomenon of financial scams, 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) have joined forces to tackle this growing issue with heavy losses for victims.

The Paris Public Prosecutor's Office estimates that victims of financial fraud in France suffer losses totaling at least €500 million a year. Despite this staggering figure, there has been a noted decrease in the number of complaints.

According to the ACPR, the average loss per victim in the first three quarters of 2024 was €69,000 for false savings accounts and €19,000 for false loans. Since the second half of 2023, a significant number of scams have targeted crypto-assets, with the AMF reporting an average victim loss of €29,000 for all scams by the end of November 2024.

Common traits among victims include a perceived “knowing about investments”, a taste for risk, and excessive confidence in unrealistic offers.

New trends in fraudsters’ modus operandi

Fraudsters have adopted new tactics to deceive their victims. One prevalent method is the "fake advisor" scam, where scammers call victims to “help” them stop alleged fraud on their accounts, asking them to approve transactions or provide login details to access their accounts. A new variant involves sending couriers to collect supposedly faulty bank cards from victims' homes.

Identity theft has also been on the rise, with scammers impersonating authorities and their employees, financial institutions and their advisors, and other entities. 

Scammers use fake videos and press articles, sometimes employing artificial intelligence (AI) to mimic celebrities' physical characteristics. Some scammers have been known to exploit the reputations of certain newspapers by posting ads or press releases for false investment offers impersonating legitimate companies.

A particularly insidious technique, known as "square fraud" or "scam on scam," involves scammers contacting victims who have already been defrauded. Posing as representatives of public authorities, these scammers offer to help recover lost funds in exchange for a fee.

Regulatory actions

In its ongoing efforts to combat financial scams, the AMF, along with the ACPR, has blacklisted nearly 5,000 unauthorized offers or market participants since January 1, 2022. The DGCCRF has inspected nearly 30 operators in 2024. Recent DGCCRF actions led to 10 influencers being ordered to cease advertising a blacklisted platform, with eight complying quickly.

The AMF has also taken legal action to block access to fraudulent websites, resulting in nearly 350 URLs being blocked since 2022.