Binary options are a form of fixed-odds betting in which the payout depends entirely on the outcome of a yes/no proposition and typically relates to whether the price of a particular asset will rise above or fall below a specified ‘rate’.
If the investor is correct, they ‘win’ and should see a return on their investment; if they’re wrong, they lose their full investment, hence the nickname “all or nothing trade”.
Up until 2017, most of the firms producing this type of scam were situated in Israel. In May 2017, the Israeli government banned the marketing and distribution of binary options both to Israeli citizens and abroad.
In 2 July, 2018 the European Securities and Markets Authority (ESMA) banned the sale of binary options to retail consumers across the EU, including the UK. From 2 April 2019, we permanently banned firms from selling binary options in the UK.
How it begins
Similarly to Forex & CFDs and Crypto-trading, Binary options scammers often advertise on social media or through a coordinated, well funded Google/Bing campaign where the ads usually link to single page websites known as landing pages. On some occasions the links may connect the consumer to the “trading” platforms’ home websites that are well-designed and professional looking. On occasion, some will even try and present a form of regulation.
Once the potential victim leaves his or her information on the web, the phone calls begin.
The first person that calls is usually from the FTD department (First Time Deposit) and is quite eager in their attempts to make you deposit (and earn their commission).
Having heard the promise of using some magical software that can generate money out of thin air in minutes time (and sometimes under the guise of fake celebrity endorsements), most retail consumers cave in and deposit their first amount, usually around 250 or 500 Dollars/Euros/British Pounds.
For more information about the most common “tricks” these scammers use, click here.
As written above, up until May 2017, the majority of Binary Options scammers operated from Israel. When the Israeli parliament banned their activity, these firms sought a place with little to no regulation, cheap labor and where money has strong black-market buying power; Eastern Europe was an instant match. In the following months, most of the newly-banned binary “brokers” relocated.
The firms operating the scams tend to be based outside the UK but often claim to have a UK presence, often a prestigious City of London address.
It may not surprise you to hear that these “trading” firms target any and all “clients” that have access to money, be it in the form of savings, credit or other intangible assets.
Most fraudsters have a habit of specifically targeting older populations as they are not likely to be computer savvy and are more likely to have saved money for their retirement.
As sad as it sounds, these “brokers” make it a point to call their victims, pray on their weaknesses and swindle them out of their hard-earned money, be it through sweet-talking, yelling, flirting or even having hour-long debates and conversations.
All designed to do one thing and one thing only – Make.You.Deposit.
The nightmare begins
After depositing the first chunk of money, the agent you were in contact with is soon replaced by someone with a rather impressive job title. Some common titles include: “Senior account manager”, “investment advisor”, “VIP manager”, “Wealth Creation division” etc…You name it – they write it. This new account manager is pleasant to speak to, informative and knows how to inspire confidence.
The nightmare begins when you are told that the original amount you invested is “just not enough”, for one reason or another. Using cleverly built (and well-rehearsed) sales pitches, the scammers persuade their “clients” to invest larger and larger amounts often reaching tens and even hundreds of thousands of dollars.
Employing a whatever-it-takes, end-justifies-the-means approach, clients are actively encouraged to take high interest loans against their properties, borrow from friends, family and partners, or even liquidate their Superannuation/Pension plans.
What if you refuse
The moment they understand they have no chance of influencing you to transfer any more money is when the horrors really begin. The pleasantries are done with and as is custom in their trade, your account is tanked.
Warning! Our clients report that even after they have lost all of the money in their trading account, following their account manager’s advice, they still receive incessant phone calls by other agents offering some “recovery” plan that involves a new investment. If this sounds familiar, cease communications with your “broker” and contact us immediately!
Be smart, it’s not over
The people who tricked you rely on your emotional engagement with their website and more importantly, they rely on you staying passive.
There are many things we can do to assist you in recovering your money, methods of claim-back that have stood the test of time; We will fight tooth and nail until you receive every dollar that is rightfully yours, back, be it through the banks, credit card providers or even the regulatory bodies responsible for safeguarding your finances back at home.
Leave your details below for a free evaluation of your situation