Bitcoin, Ethereum, Ripple, etc. : it’s difficult not to have heard of these “virtual currencies” which are often wrongly described as “cryptocurrencies”, since they are not legal tender in France.
The enthusiasm generated by these assets has led certain unscrupulous players to offer savers the opportunity to invest in them. Keep in mind that no serious company can guarantee a minimum return with an investment in “cryptocurrencies” or crypto-assets.
Faced with these too-good-to-be-true speeches, promising guaranteed high returns, there is only one piece of advice: stay away. By thinking of speculating on the rise of bitcoin and other “cryptocurrencies”, you risk losing your entire stake. Point to find out more.
Scams in “cryptocurrencies”, what are we talking about?
To be able to offer you to keep them, to buy or sell crypto-currencies against legal tender currencies, to exchange crypto-assets for other crypto-assets, or to operate an asset trading platform digital, your intermediary must be registered with the AMF. You can consult the whitelist of digital asset service providers (DASPs) authorized to offer these services. Furthermore, all digital asset service providers, including those already registered for the four services mentioned above, can request optional authorization from the AMF. To avoid scams, choose registered and approved contacts.
Please note: since January 1, 2024, new PSANs must undergo enhanced registration with the AMF. The verifications carried out relate in particular to internal control and the security of assets, to the quality and reliability of the information provided to investors, etc. Click here to learn more about how to choose a cryptoasset platform before investing.
Trading on derivative products, such as CFDs (“contracts for difference”) on “cryptocurrencies”: to be legal, this service must be offered by platforms with the status of investment service provider (ISP). ). Therefore, check that your intermediary has the necessary authorizations to carry out this activity legally by consulting the Regafi register. Namely: since 1er August 2018, the marketing of CFDs on crypto-assets to individuals is limited to a leverage of 2.
If in doubt, check that the professional is not on the AMF blacklists and contact AMF Epargne Info Service by form or on 01 53 45 62 00.
Attention : blacklists are not exhaustive! An establishment or platform that is not listed there is not necessarily reliable. To check whether an actor is authorized, you must refer to the PSAN white list for direct investments in crypto-assets, or to the Register of financial agents (Regafi) for investments in derivative products on crypto-assets.
In the event of a dispute, what recourse?
If the platform operates legally, AMF mediation can intervene to try to resolve your dispute amicably. On the other hand, with an illegal platform, your only recourse will be to file a complaint with the police or gendarmerie. Unfortunately, in this case, the chances of recovering your money are very limited because the scammers are most often based abroad.
Attention : in the event of the bankruptcy of a platform, even if authorized by the AMF, be aware that crypto-assets are not covered by the guarantee system of the Deposit Guarantee and Resolution Fund (FGDR).
How to recognize a scam?
It is not always easy to distinguish fraudulent platforms from those that are not. However, certain signs should alert you.
Scammers with well-rehearsed speeches…
Scammers use well-known techniques. They contact their future victim by email, telephone, via social networks or private messaging, sometimes after the victim has left their contact details in a form on a site offering to invest in “cryptocurrencies”.
They first show great friendliness and seek to establish a climate of trust. Their speech is always very elaborate, and they often rely on a whole network of false “professionals in the sector”. They insist on the rise of “cryptocurrencies”, notably bitcoin, and hold out the promise of a 2.0 currency with very attractive returns.
The scammers invite their future victim to directly invest their money on a fraudulent platform, which is obviously not authorized to offer services on crypto-assets; or offer to convert their money with an authorized PSAN before directing them to a fraudulent trading platform.
After investing, small amounts at first, a first withdrawal of the so-called profits is granted. The victim now having complete confidence in the investment, she invests larger amounts but which, this time, will never be recovered.
The contacts end up becoming unreachable or find various excuses not to make new withdrawals (amount blocked for a minimum period, technical problem, etc.). In some cases, they even ask to make other payments to resolve the problem, for example by claiming the payment of false “taxes” or false “taxes”.
Other patterns to spot to avoid scams
- The scam within the scam or refund scam : once the scammers understand that you have unmasked them, a second scam can be set up. A new person (lawyer, bank, public authority) contacts you and makes you believe that you will be able to recover your funds… by paying more money! Remember: neither your bank, nor the AMF, nor any other authority will ever contact you on their own to help you recover lost funds.
- Play on feelings : to trap you, scammers know how to establish a climate of trust. “Romantic relationship” on dating applications, “friendship” on social networks, “strong concern” for the personal situation of elderly or isolated people… Be wary of the speeches of these people you have never met in true and too well-meaning people.
- Theft of notoriety : Scammers can impersonate public figures, newspapers or well-known news channels. They create fake websites, fake social media accounts and spread fake articles, false claims or use images from TV shows to trick you into investing on their fraudulent platforms. Always make sure your sources of information are reliable!
- Online training : paid, they promise to teach you everything you need to know about trading crypto-assets. Attention ! You don’t become a trader in a few hours. This is a profession that requires many years of study and very risky speculative activity. Be wary of these so-called training courses and the platforms through which they encourage you to invest which could be fraudulent.
Warning signs
There are many warning signs that can alert you. Some are easily identifiable: for example, guaranteed high returns (beyond 2 to 3%) don’t exist!
Other signals may alert you; you must take the time to look at the details: absence of legal notices, summary presentation on the website, contact information and bank details of the contact person abroad, etc. To learn all about the signs of a scam, check out this article.
If you have the slightest doubt, contact AMF Epargne Info Service by form or on 01 53 45 62 00, or with Assurance Banque Epargne Info Service on 34 14.
Victims of scams: they testify
AMF Epargne Info Service receives numerous testimonials from people who, having thought they were buying or investing in “cryptocurrencies”, such as bitcoin, were in reality defrauded.
Mr. C registered on a platform for buying and selling “cryptocurrencies”. Curious, he decided to invest €1,000. Contacted in the middle of the night, he was offered to take a position that could bring him big returns, but he had to decide immediately and pay €10,000. Mr. C being unable to release this sum immediately, the platform advanced him the money. The next day, an “advisor” called him back to tell him that he had just won €100,000! But, due to the cash advance granted by the platform, he had to share 50% of his winnings with her and therefore pay her €50,000 to recover the amount. Fortunately, the size of the gain aroused the suspicion of Mr. C who refused to give them the money. He lost €1,000, but narrowly avoided losing €50,000 more!
Mrs A was thinking of buying “cryptocurrencies”. After a first payment, she was regularly contacted by the platform to encourage her to invest more and more, for a total amount of €53,000 paid. Once she asked to recover her funds, no one answered her phone, claiming that her “manager” was in a meeting, on vacation or on sick leave. Filing a complaint is now the only solution available to her.
Mr. V invested €70,000 on a “cryptocurrency” platform. The AMF’s alerts on this subject have made him suspicious. He therefore wanted to recover his funds. To do this, the platform demanded payment of various taxes to which he was supposedly subject. However, the latter were fictitious or did not concern Mr. V; and therefore constituted an additional reason to doubt the reliability of the site. Here too, filing a complaint is the only solution available to him.
Author Bio
A connoisseur of the digital marketplace and a master of the written word, this 30-year-old English expert brings to the table a wealth of knowledge rooted in the sale of digital products and a passion for blogging that resonates with an audience seeking expertise and insight in the online realm.
Their insights are drawn from hands-on experience navigating the intricacies of e-commerce and content creation—leading the forefront of digital innovation and communication. Whether it’s breaking down complex marketing strategies or sharing tips on how to captivate an online audience, their work stands as a testament to a career built upon successful digital engagement and savvy business acumen.
Stay tuned to absorb compelling content from a voice that not only understands the digital landscape but also shapes its future through every blog post and digital strategy.
