A man in his fifties fell victim to a mortgage scam, losing 62,000 euros to a fraudulent broker who promised secure funding. Many in France face similar scams, often initiated through misleading online ads. Experts emphasize that legitimate brokers won’t request upfront payments. Victims can check for fraudulent sites and may recover lost funds if banks are deemed negligent. However, recent rulings indicate banks aren’t liable if clients acted carelessly.
The Pain of Falling Victim to a Scam
In an effort to protect his loved ones from the distress of his experience, a man in his fifties has chosen to keep his identity under wraps. “I feel incredibly angry. I certainly blame myself for what happened,” he shared in a recent report. In his quest for a mortgage to build his dream home, he unfortunately encountered a deceitful broker. “They spoke like genuine bankers, like real brokers. They assured me that the funds for my house would be secured,” he recounted.
How Scammers Operate and Recognizing the Warning Signs
To secure a loan with an appealing interest rate, the fraudster requested that he deposit his personal contribution into a designated account. Trusting the scammer, he transferred a staggering 62,000 euros. Soon after, his contact became unreachable. “It dawned on me that I had been conned. I was left wondering: ‘How do I explain this to my wife? What options do I have to recover that money?’ This was especially painful as those funds represented the inheritance from a deceased parent, and now everything feels like it’s crumbling,” he lamented.
Each year, countless individuals in France fall prey to this type of scam, often lured in by a misleading online advertisement that directs them to a counterfeit brokerage site. After providing their contact information, victims are approached by phone. Once a fake loan agreement is signed, the scammer instructs the victim to transfer their personal contribution to an account they control, disappearing shortly after. To add credibility, these fraudsters frequently impersonate legitimate brokers.
Sandrine Allonier, a spokesperson for ‘Vousfinancer’, recently encountered victims of such deceit. “I became aware of the issue when I started receiving calls from individuals who had deposited money but never received their loans,” she revealed. So how can one differentiate a genuine broker from a fraudster? According to Allonier, “Real brokers do not engage in cold calls. It’s crucial to stay cautious because reputable brokers will never ask for money before the release of funds. There should be no requirement to deposit a personal contribution into the broker’s account, nor should there be any upfront fees for insurance or deposits,” she clarified.
If you suspect that a brokerage site may not be legitimate, it’s advisable to check the blacklist of known financial scam sites. Caroline Bontems, head of the commercial relations department of the Prudential Control and Resolution Authority, shared, “We receive daily reports from victims, and our teams continuously identify fraudulent sites. Scammers operate on an industrial scale.” Victims often suffer losses averaging 20,000 euros, which typically represent a lifetime of savings.
Is it possible for victims to recover their lost funds? Tracing these scammers can be challenging as they are often based overseas. However, in certain instances, victims’ banks may be required to reimburse all or part of the lost amount if a court determines the bank acted negligently. “If you made unusual transfers that deviated from your normal behavior, that could be a red flag. Additionally, if funds were sent to accounts in high-risk foreign countries, the bank should have notified you,” explained Laureen Kraftchik, a criminal law attorney.
Recently, the Court of Cassation addressed this issue, stating that a bank is not obligated to reimburse clients who have fallen victim to banking fraud if those clients displayed significant negligence in their actions.