French authorities are grappling with an alarming rise in crypto scams, which contribute to an estimated €500 million in annual losses.

Financial scams continue to inflict heavy losses on French consumers, with the Paris Public Prosecutor’s Office estimating that victims lose at least €500 million each year.

In a Thursday press release on Dec. 26, the Autorité des Marchés Financiers revealed that the average loss for victims of financial scams in 2024 was €29,000. Many of these scams have targeted crypto investors, with fraudsters using fake celebrity endorsements and investment platforms, the regulator said.

“Fake videos and press articles are used to replicate the physical characteristics of celebrities, sometimes using artificial intelligence. These celebrities then inadvertently reveal the source of their wealth, obtained thanks to an alleged crypto-asset trading offer, which turns out to be a complete scam.”

The Autorité des Marchés Financiers

Although the number of complaints has dropped, possibly because of compensation schemes and law firms grouping cases together, the AMF says French authorities are still taking action against fraudsters. Since 2022, the AMF and the Autorité de Contrôle Prudentiel et de Résolution have blacklisted almost 5,000 unauthorized market participants, the press release reads. They both have also worked to block nearly 350 fraudulent websites.

In November 2023, an AMF study showed that more French people own crypto than stocks or exchange-traded funds. The survey found that 9% of people own cryptocurrencies, compared to 7% who hold stocks and 2% with ETFs.

The AMF urged the public to remain vigilant, warning against offers that seem “too good to be true” and advising individuals to consult official registers before making investments.