Increased Vigilance Against Fake Investments
As a trial is underway in Nancy regarding a fraud case that affected more than 1,200 victims, the French Financial Markets Authority (AMF) is warning the public about several unlicensed entities offering investments in various assets such as diamonds, cryptocurrencies, wine, and cattle herds.
In light of this situation, CNCEF PATRIMOINE, a certified professional association of Financial Investment Advisors (CIF) and Wealth Management Advisors (CGP), reminds the public of the precautions to take to avoid being scammed.
Scammers’ Modus Operandi
The scammers’ modus operandi unfolds in several stages:
1. Creation of Fake Websites: Scammers create websites for financial investment professionals and post advertisements on social media, promising highly lucrative returns—often in diamonds and cryptocurrencies, but also in wines and champagnes.
2. Collecting contact information: They collect the contact information of interested individuals and contact them to finalize the investment.
3. Requesting a wire transfer: They ask victims to wire the amount of their investment to accounts opened specifically for this purpose abroad.
4. Disappearance: The scammers simply disappear with the money that has been paid.
AMF Blacklist
For this reason, on October 18, the AMF updated the list on its website of the latest identified websites offering investments in this type of property without authorization. “Scammers are taking advantage of the public’s lack of knowledge and information to set up increasingly sophisticated and credible scams, which can cause individuals to lose several thousand euros!” laments Pascale Gloser, President of CNCEF PATRIMOINE.
“As a professional association, we are committed to promoting financial education among the general public and to representing a strictly regulated profession, which is undermined by such practices. Investors should be aware that an investment in this type of asset should be made solely for the purpose of financial diversification. A thorough review of their financial situation and goals, along with an assessment of their investment horizon, is essential before making any investment decision. Seeking advice from a generalist financial advisor (CGP/CIF) is strongly recommended to evaluate the investment’s risk-return profile in light of their objectives.”
Precautions to Take Before Entrusting Your Money
Before entrusting your money to someone who presents themselves as a Financial Investment Advisor, it is essential to verify the following:
• Registration with ORIAS: Verify their registration with ORIAS, the single registry for insurance, banking, and finance intermediaries.
• Membership in a professional association: Verify their membership in a professional association approved by the AMF (such as CNCEF PATRIMOINE). Membership is mandatory; without it, the professional is not authorized to practice.
• Headquarters in France: Verify that the company’s headquarters is actually located in France.
• Email address: Ensure that the email address used is not on the AMF’s “blacklist” or on the joint list maintained by the Banque de France, the AMF, and the ACPR, which identifies fraudulent entities not authorized to operate.
• Visit the Protect Épargne website: Visit the AMF’s fraud prevention website, Protect Épargne, to take a questionnaire to determine whether you are the victim of a scam.
• Verify the bank account information: Call your bank before making any payment and verify the service provider’s bank account information, especially if it is a foreign bank.
Caution is advised when it comes to fraudulent investments in various assets. By following these recommendations and thoroughly vetting the professionals to whom you entrust your money, you can reduce the risk of falling victim to a scam. Prevention and financial education are essential to protecting investors and ensuring the transparency and security of investments.
