Some business professionals have dedicated their careers to the art of binary options trading, while other financial experts shrug it off as nothing more than gambling. Whatever your opinion on the subject, this business practice has proven great potential for large gains. Regrettably, scam artists use this market segment to con people into losing their money.
What is Binary Options Trading?
At its core, it is a form of an options contract that hinges on the state of the commodity market. What differentiates this type of trading is its binary nature of the outcome. To explain it further, the price of any asset on the market can either rise or fall. The interested parties may speculate whether certain stocks and goods will present an increase or decrease in value at a specific point of time. Contrary to stock trading, they are not buying or selling anything, but rather they place a type of bet. If they predict the outcome correctly they earn money, and conversely, they lose if they guess wrongly. This creates a win or lose scenario, and hence the binary in the term.
For instance, an individual may look at oil stocks and see the price holds at 50E. Afterward, they contact their binary options trading institution and declare that at 9:00 am the oil stock price is bound to present an increase. Of course, they pay a sum of money and with this, they place a form of a bet. If at 9:00 am the stock displays a rise by a single cent, the investor will receive predetermined gains. On the other hand, if the price presents a drop by a single cent they lose their money.
Laws and regulations regarding binary trading opportunities vary significantly worldwide. This enables financial institutions and companies to offer wildly different offers and business terms. This gets even more chaotic with online trading and binary options websites. It is no wonder why scammers flock to these financial spaces.
What Is a Binary Options Scam?
To put it simply, fraudulent groups and individuals can use binary options trading to exploit investors. The target gets sucked into a scheme purposefully designed to extract their funds without any chance of gains whatsoever. Sadly, these scams are widespread and frequent in this finance area, and even seasoned traders end up being a victim.
There are a plethora of unregistered and illegitimate platforms which will promise money-making tips and get-rich-quick opportunities for a monthly fee. Of course, their advice is inaccurate and seldom profitable. In the end, their beneficiaries lose their money and they can’t get in contact with any of the personnel.
These fraudsters have well-developed systems and they will use any means necessary in order to rob an unsuspicious investor. Con artists will present themselves as verified experts with unique insight into the market fluctuations. It is not uncommon that scammers will try to sell state-of-the-art software which can make amazing bets for their users. Quite often, these programs end up being malware.
Commonly, scammers use official sites, message boards, and social media to promote themselves to lure their victims. Unsolicited calls and emails turn into aggressive pitches presenting a now-or-never investment opportunity. With a constant stream of information, it’s difficult to discern the real trading professional from the scam artist.
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What Can You Do in Case of a Binary Options Scam?
Ask for professional help. Don’t hesitate to take proper action towards retrieving your money. Not all is hopeless, Integrity Legal Center is here to provide you with options. We are here to help you minimize the consequences of your scam experience. Hopefully, our company will help you get your hard-earned money back.
We have a team of experts at your disposal who are ready to take on your case. They have extensive and diverse experience in legal matters and financial remedies relating to fraud and scams. Our professionals boast a large number of successful cases. Because of this, chances are that we have already dealt with similar cases to yours. So don’t wait any longer and make the first step towards retrieving your money. Contact us now for a free consultation.
Inability to Collect Your Funds and Radio Silence
You’ve found yourself an excellent site for trading opportunities, or perhaps you’ve formed a business relationship with a knowledgeable broker with hot tips. They advise you to invest a little bit extra for that amazing opportunity to score the big bucks. Everything is going swimmingly until the first moment you ask to collect your gains.
The biggest red flag is when clients are unable to withdraw their funds easily. Fraudulent institutions will provide you with various reasons and excuses why you can’t access your funds. They might even ask for an additional withdrawal fee. Victims may end up in a labyrinth of contacts referring them to someone else who can give them their money. Generally, no one answers their calls or emails. In either case, the scammed person has lost their money.
Identity Theft
Quite often, identity theft is a common element of various types of scams. Binary options schemes usually include fraudulent platforms and software that mine personal data from their unsuspecting clients. This information is consequently employed for nefarious reasons. The victim’s identity is abused to take out bank loans or make unsolicited payments and investments. Ultimately, the scheme is incurring a considerably greater financial injury than the loss of invested money.
Manipulation of Software to Generate Losing Trades
Since binary options trading is commonly done electronically and through internet portals, the information and figures are highly susceptible to manipulation. The scammers may embezzle their clients from their money by tweaking numbers. Even if the victim wins, the fraudulent parties can present the figures as if their client has lost the money. In some cases, this is difficult to check. What’s more, the fraudsters may employ a network of fake sites to assert their credibility. Unfortunately, their targets are unaware they’re caught in the web of lies.