The Dangers of Binary Options Fraud
Everybody loves making money quickly and easily. That’s why people play the lottery, bet on horses, and make investments. The problem is, your chances of winning aren’t always in your favor and, in some cases, they are actively working against you. Binary options, while simple and promising in theory, has essentially become similar to a lottery game with no winning numbers or a horse race in which all of the horses are in on the fraud. With more fraudulent companies than legitimate ones, identifying the red flags of a scam is more necessary than ever. Here are some things you’re going to need to look out for if you’re considering investing in binary options:
Binary Options Trading: The Good, The Bad, And the Ugly
The whole concept of binary options trading is that you either earn back a fixed amount or nothing at all. It’s a very nice idea and could very much be described as the market version of a game of casino craps. The problem is that many of these fraudulent companies have systems that manipulate the outcomes of the ‘investments’. Using smoke and mirror tactics, illegitimate companies will take the money out of the equation and simulate an outcome with the nonexistent investment, severing all contact with the victim in the process. If your brokers ignore your calls, emails, and requests to withdraw, start preparing for the worst and contact anasset recovery firm.
Binary Options Trading: Boiler Room Tactics
The most important thing you have to keep in mind when talking to any salesman is that they aren’t doing it for you. Their wages and commission completely depend on getting people to buy their products. The workers are paid a percentage of however much you lose.This business model doesn’t fit too well with honest sales people, that is where the boiler room tactics come into play. One of the biggest scam tactic you need to look out for are the guarantees. If the salesman says that there’s an absolute guarantee that you will profit, that is an immediate red flag. Very often, the guarantee is not enough to reassure the client. This is the point where the broker may offer a bonus to their investment as a gesture of good will. This is a dead giveaway that you are treading in dangerous territory.
Binary Options Trading: Keep Yourself Safe
Whenever you make a financial decision, it is always safest to leave a paper trail. Make sure to keep records of all transactions and correspondence. Make sure you know the whereabouts of your brokers and document all money transfers. It is always advisable to make these sorts of transactions without the use of cryptocurrency because cryptocurrency is near impossible to trace and the chances of recovery are little to none.
Binary Options Trading: I Made A Mistake – What Do I Do Now?
The first thing you do is try not to panic. If you find that you have fallen victim to a scam, it is unfortunate, but not the end of the world. Gather all of the information you have gathered on your dealings with the broker and contact the bank immediately for a chargeback. If you can’t get the chargeback, there are companies out there that can help you recover your stolen funds from binary options scammers.
At the end of the day, all investments are risks. Some are riskier than others and it’s okay to pursue them as long as you are informed and take the proper measures to protect yourself. Not all binary options are scams and not all scams are binary options, but you need to know the difference if you plan on dipping your feet into the roaring rapids that is the free market.