After entering the Covid-19 pandemic and a series of lockdowns, scammers seem to be bending toward frauds that target work-from-home employees or unemployed people. The most trending among these are the binary options scams.
The unregistered brokers and investment platforms work through social media and other online communication software.
Given the crises that people dealt with, it was predictable that they’d fall for any offers that came their way. Eventually, the investor’s leap of faith led to future regrets after discovering the scam. Hence, Financial Fund Recovery makes it a point that everyone learns about such frauds and their course of action.
IN THIS ARTICLE
What are Binary Options and how does it work?
A binary option is an investment alternative that assigns the parties one out of the two outcomes in a transaction. Now, the outcome posted depends entirely on whether the option in the money expires or not. Thus, the name “binary” occurs due to binary options dependency on a mere yes or no proposition.
A trader’s ability to predict and get the correct answer can decide whether they make an income or loss. The traders bear a loss if the binary option expires out of the money. Contrarily, they gain a profit if the option expires in the capital. Therefore, it implies one either gains everything or nothing.
The prices fluctuate depending on all market transactions made by the traders. The two crucial aspects are: the period until the expiration and the strike price.
The binary options function through an automatic procedure. The stockholder cannot buy or sell stocks in binary options. Many other options let you buy or sell. The binary option will expire; when it does, the holder will receive either a predetermined amount of cash or lose everything.
How to Spot Binary Options Scams?
The Commodity Futures Trading Commission saw an evident growth in the number of complaints from the unemployed and others carrying on their roles from their homes. Further, those who have already lost money to such scams become easy targets. They get lured into quick money-making schemes.
There is no sign of the scammers stepping back from perpetrating mischief. On the contrary, they are making the most out of the situation. Further, the exclusively high returns get more traders.
The first step to preventing such fraud is being able to spot it. Hence, professionals at Financial Fund Recovery have listed some warning signs that’ll help spot binary options scams and allow trading safely.
- It’s suspicious if a broker doesn’t make their identity or location known.
- The only coordination you’ve ever had with the broker is across online platforms.
- They assure returns within a stunted period.
- The broker isn’t registered or licensed.
- It is an offshore provider.
If you’re dealing with a broker that shows any of these signs, you can verify whether they are genuine by connecting with our consultants.
How do Binary Options Scams work?
Fraudulent brokers of Binary Options utilize different strategies to defraud their targets. These ingenious strategies involve
Deposit theft:
Binary Options brokers entice investors to make deposits and then refuse the request when customers want to withdraw and freeze their accounts. They cease to answer the investors’ calls and emails. More ingenious fraudsters let the users make a few withdrawals to lure them to invest more money and then run away with their funds.
Identity theft:
Fraudsters sometimes do not aim to steal money instantly. They first garner targets’ personal information and sell it in the black market or leverage them for personal gain. Identity theft is hard to avoid as personal data is required everywhere, from account creation to withdrawals. However, verifying brokers’ legitimacy before investing can help investors.
Fraudulent Websites:
Scammers develop fictitious Binary Options trading websites to trick investors. Not only do they create fake websites and mislead people into making deposits into their wallets, but they also garner sensitive data like bank account details utilizing these websites.
Illegitimate Firms:
Scammers owning fictitious firms utilize compromised trading software that misrepresents payouts. Sometimes they lengthen the expiration date when the investors are supposed to win. Fraudsters who do not intend to pay the investors resort to such methods. Sometimes they even terminate investors’ accounts without informing them so that investors cannot withdraw their money.
Online Platforms:
A large group of Binary options scammers typically work across digital platforms such as messaging applications and social media like Facebook, Instagram, etc. First, they showcase impressive achievements, positive feedback, and socialize online. Then, with social media influencers’ help, they build an easily manipulable audience.
Social Media Influencers:
These influencers are paid to share promotional posts that feature fake and made-up screenshots. Such screenshots illustrate the enormous profits earned by trading with the broker. However, the truth is that they represent names, profits, and occurrences that do not exist in reality. Nevertheless, it still serves the fraudulent party’s intention by enticing trading prospects.
Upfront Money:
Traders are further tricked into paying for upfront deposits, taxes, hidden fees, and soaring commissions. Under most circumstances, the traders get an update on how their funds are flourishing. They share an investor’s account details with a high balance that doesn’t even belong to them.
Service Taxes and Hidden Fees:
Finally, when the trader attempts to withdraw their funds, they’re charged additional taxes and fees. As time passes and the victims start sensing something’s off, the broker cuts down all ties. Traders are either ghosted or blocked by the provider.
How To Protect Yourself From Binary Options Scams?
There are many points to consider that can safeguard you against such scams. First off, know that binary options are risk-bearing investments. It means that it’s always ideal to consider the amount you want to invest beforehand and compare it to the losses you can afford. To be more elaborate, investing a hefty sum and mortgaging your house, car, or other valuables does not make a great deal.
If you’re new to binary options, it’s best to start with a small amount. It’ll let you grasp the market and its undertakings more accurately. The second vital part is determining whether the broker and their website are registered with the appropriate authority.
Another detail is that not every registered firm runs a legitimate business. So checking for registration and license alone won’t suffice. One can cover a few more areas for an extensive background check.
The last piece of advice would be to equip yourself with all the know-how of trading. Then, each time you invest, plan and research your investment well. Do not forget to scan the standard commission, fees, and taxes. Compare them with the broker’s rates to spot any defects.
Binary Options Scams Stories and Reviews
If you go through the reviews and stories of the investors who have lost money in binary options, they would sound similar to Binary Options scams, primarily due to either rigged robots or dishonest brokers. Needless to say that options investors must educate themselves about the popular brokers and their method of working so that investors can differentiate between legitimate and crooked brokers.
Some regulated or legitimate Binary Options brokers are,
- Pocket Option
- IQCent
- Focus Option
- IQ Option
- Race Option
- Quotex
- Deriv.com
- Focus Option
- Spectre.ai
- Binary.com
Scam Binary option brokers,
- Banc de Binary
- Options-World
- Beeoptions
- Brokeragecapital.com
- Binaryinternational.com
- Bull Option
- OptionRally
- Safe24Option
- Vault Options
- TraderXP
Legal Proceedings of Binary Options
High volatility and other characteristics of Binary Options have made this field of passive income vulnerable to scammers. As a result, many investors lost money while investing in Binary Options.
Many regulatory authorities have considered Binary Options similar to gambling and prohibited the investment option. Moreover, a European regulator, European Securities and Market Authorities (ESMA) has imposed restrictions on retail Binary Options trading.
Australian Securities and Investments Commissions (ASIC) have marked Binary Options as a high-risk investment option at first. And later legally put an end to retail Binary Options trading.
As many Binary Option trading platforms are discovered suspicious, the FBI investigates scams occurring due to Binary Options around the world. Israeli police are also no exception.
What To Do If You Have Been Scammed?
If you couldn’t spot a scammer and fell for binary options scams, we suggest not losing all your hope. Times are advancing; there are ample ways to recover your wealth lost in a scam. You can also seek chargeback assistance to get incorrectly charged funds into your bank account.
Further, you can also record a complaint with a regulatory entity. The ideal choice is to opt for a fund recovery agency that covers all areas of expertise. Financial Fund Recovery is a top-tier fund recovery agency that’s the best in the business.
From an exceptionally trained team to systematic solutions, we specialize in resolving your concerns. With 92% case winnings, we’ve helped millions of scam victims fight their cases with excellent lawyers. Additionally, our investigators gather all the necessary evidence against the scammers and are thorough with their findings.
Financial Fund Recovery confronts the fraudulent party on your behalf and straightens things out for you. We’ve assisted our clients with plenty of scams, including Crypto scams, Europefx scams, Fm trader scams, and more. Reach out to us now for a free consultation.
FAQ
What is the problem with binary options?
Binary Options come with both opportunities and obstacles. These obstacles include high volatility, usually more expensive than forex trading, and less payout than foreign exchange.
What do you need to know about binary options outside the US?
Binary Options available outside the US have predetermined payouts. Independent brokers offer options. Unlike US brokerage firms, international brokers provide other types of Binary Options rather than only high-low binary options.
I was scammed on binary options. How do I get my money back?
Many fund recovery companies are dedicated to helping people recover money lost in Binary options scams and other sharp practices. One can easily find them on the internet and seek help.
Is Binary Options a scam or legit?
The Binary Option is legitimate. Though market prices are highly volatile, many people lose money.
Are Binary options legal in the US?
Investing in Binary options is legal in the US when traded on a regulated U.S. exchange.
Tricked by Binary Options fraudster? Contact us today! Financial Fund Recovery will help you to retrieve your money.