Everyone might have seen it, a pleasant and elegant chart with two buttons, a ‘yes’ and a ‘no,’ in green and red colors respectively on media platforms and many websites. Trading binary options entails pressing these two buttons.
Defining Binary Options
Binary options ask whether the underlying price will rise or fall above or below a market price at one point in the future. If the investor is correct, he receives a return on his investment, and if the investor is wrong, he gains nothing.
How does the Binary Options Scam work?
Social media, internet adverts, chat rooms, unwanted messages, and cold calls are standard methods used by binary options scammers. The brokers place adverts on the Internet, usually pointing you to a well-designed, legitimate-looking website. Alternatively, you may be prompted to stay on the line to speak with a “trader” by legitimate automated robotic calls. Scammers use scripts to appear friendly and professional, but they are well-versed in high-pressure sales techniques.
The trader will entice you to register an account by offering complimentary cash. Then they seek your money in the form of a credit card, pre-loaded card, or fund transfers, promising quick and significant returns. In actuality, much of it is made up, with a tiny initial success aimed to generate trust, but nothing can be transferred.
Your phone calls and emails will be ignored by the trader when you want to withdraw money from or delete your account or if scammers suspect you’re catching on. They may access your credit or personal information without your knowledge to obtain access to even more funds. They vanish after stealing as much of your funds as they can.
There are several binary options scam recovery firms that will assist you in getting your money back, just as there are police officers to apprehend and prosecute thieves. These companies employ professionals who are well-versed in this subject and can catch the fraudster using various methods. You have to work with them and offer as much information as possible on the scammer. Let them handle the rest.
Common characteristics of Binary Options websites
There is a myriad of bogus Binary Options websites on the Internet, and for everyone that goes down, another pops up. For example, binary Options marketing websites would include Binary Options information, ratings, and rankings, as well as “testimonials” and videos from people who claim to have gained thousands of dollars by trading Binary Options. This offers victims the mistaken impression that Binary Options trading sites are legitimate. In actuality, these websites are paid commissions for directing victims to specific Binary Options trading sites.
Typical features of binary options trading platforms include:
- Free ‘bonus’ money when you register a new account
- Promises that Binary Alternatives trading is ‘low risk.’
- Claims of huge returns, frequently in a short period
- A range of funding options to fund an account, including credit cards
Keep an eye out for sales pitches.
Binary options website personnel may use phony names and claim fraudulent credentials, qualifications, and expertise. They can disguise the information as to where they are calling you from, for example, make a bluff about calling from a foreign state. It’s possible that “unbiased” sources analyzing binary options websites were paid to promote or disparage specific sites. Fraudsters may “caution” you that the binary options platform you’re using is a fraud to gain your confidence and persuade you to deposit additional money on some other website they operate.
If you’re thinking of investing in a binary options website, keep an eye out for the following red flags:
- Unprompted Offers: These are the ones that are made to you without your permission. Unwelcome offers to earn investment income that appears too tempting (you didn’t even ask for and don’t recognize the sender) may be part of a fraudulent investment scheme.
- False Identity: Binary options website employees may make misleading claims that the government demands copies of your credit or debit card, passports, driver’s license, utility bills, or other sensitive information. Secure your private data and keep yourself protected.
- Representatives are constantly changing: If the names of the people you’re interacting with at a binary options website change regularly, or if you’re told your previous “broker” has been dismissed, be cautious. Make sure you check the website and the broker on the Commodity Futures Trading Commission (CFTC) ‘s RED list once before investing.
- Fund withdrawal issues: The binary options website personnel can keep your withdrawal request on hold until it’s far too late to argue your charges with your credit card issuer.
- Abuse of credit cards: Check your credit card bills for fraudulent payments if you paid for your account with a credit card. Report all unwanted charges to your credit card company straight away, even if you signed a paper purporting to waive your right to contest any credit card charges.
What to do if you become a victim of Binary Options scams
First and foremost steps you have to take if you become a victim of such a scam:
- Block your credit and debit cards immediately.
- If you have provided your banking details to the scammers, call up your banking personnel and advise them of such a scam.
- If you gave any personal information such as passport, license, and utility bills, contact the concerned people and notify them.
- Last but not least, one of the crucial things is to inform your close one about this. Hiding that you have been a scam victim can only add up to your stress.
If you become a victim of a scam once, chances are you can be a victim again. This process is called Revictimization. The scammer who has your details can contact you again after a few months or a year and try to entice you with quick money-making schemes. Or, since he has your personal information, he can sell this information, and you may get calls for recovering your money. It’s in your hands to be aware and not fall for such tactics again.