The scammers main target is the investors belonging to developed countries like the US and the UK for binary options investment fraud.
Binary Trading, a form of fixed-odd betting where the net outcome might be a huge profit or nothing at all. Similar to the binary code that a computer runs on. Either one or zero. Here one signifies a profit, whereas Zero signifies nothing.
On 3rd January 2018, binary options became a regulated investment method. While choosing a binary options trade, we recommend you to select one authorized by the Financial Conduct Authority (FCA).
If the firm you invest in is unauthorized, you are at a higher risk of losing your money. You won’t have access to the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if anything happens with your money or you end up losing everything.
How do Binary Options Scams work?
It all starts with a proper marketing plan, like social media ads or banner ads where the advertisements would link you to their website. At first glance, the website would look highly legit, and it would ooze professionalism at one go. However, you would realize that it is a fake one at a second glance.
Most of them operate out of the UK or the US but claim to be from that very particular place. In such cases, the best way is to check and verify the address that they provide.
Often these scammers manipulate the software, and you might end up believing that you are constantly making profits, then all of a sudden, you end up making a loss and losing all your money at one go.
How to save yourself?
The best way is using your common sense, like never entertaining requests from salespersons who promise such high returns within such a short duration of time. It would help if you only entertained those who the FCA authorizes.
The customer should also see that the firm isn’t a fake one by checking their Firm Reference Number (FRN). You can also verify their contact details by calling them on their number and asking for their license number.
If the salespersons pressurize you by saying that you need to invest immediately and say that you might miss out on a good bonus that they offer, We suggest you stay out of it.
If nothing works, we recommend you get independent professional advice before making any investment.