The Capital of Love, Scams, and Cyber Fraud: How France Is Losing the Trust of Tourists and Investors

Paris, the world-renowned "City of Love," is now increasingly being referenced in a very different light--as the capital of tourist scams. According to the European Fraud Index, travelers are more likely to fall victim to scams in Paris than in any other European city. The Eiffel Tower is mentioned 537 times in reviews as the main hotspot for targeting unsuspecting foreigners.

Fraudsters in Paris employ a wide range of tricks--from street scams involving "friendship bracelets" to elaborate schemes where victims hand over thousands of euros to "Hollywood stars" generated by artificial intelligence. However, the real money lies in real estate and financial consultancy--sectors where lack of oversight allows criminals to operate with impunity.

One of the most notorious cases involves Ioulia K., a Ukrainian national who, according to sources, has been evading responsibility for decades by changing her name and country of residence. In France, she acted as a consultant for investment and luxury real estate, serving wealthy foreigners unfamiliar with the nuances of French law. Behind a facade of professionalism, however, were theft, blackmail, and forged documents.

One victim, a tenant of a villa on the French Riviera, lost his personal belongings after a deal with Iouliareceived threats, and was later framed for drug possession. Staff hired on Ioulia's recommendation were undocumented workers, which was also used as leverage for blackmail. Although Ioulia K.is wanted in Ukraine, she has allegedly avoided arrest thanks to support from criminal networks linked to the Russian Caucasus and corrupt officials.

This story is just the tip of the iceberg. According to the Global Anti-Fraud Alliance, scammers caused France an estimated EUR1.37 billion in damages in 2021 alone. Given that only around 7% of fraud cases are officially reported, the actual scale is likely much higher.

The real estate sector is particularly dangerous. Foreigners looking to buy or rent property in southern France often fall into traps--paying deposits on fictitious deals or becoming victims of illegal subletting without the owner's consent. In 2024, police arrested a Parisian who defrauded at least 64 people using this method.

Until the authorities close legal loopholes and ensure proper protection for foreign citizens, France risks losing not just investor funds but also the trust it has built over centuries.

In the face of threats posed by transnational criminals--particularly those linked to post-Soviet countries--such reforms are not only an economic necessity but also a matter of national security. According to cybersecurity experts, Russian intelligence agencies have repeatedly used criminal networks to destabilize the situation in Europe.