With the recent increase in the Binary Option Trading Platforms, there has been a rise in the number of fraudulent exchanges worldwide. The CFTC and the SEC have recently received numerous complaints relating to the fraud associated with the websites that offer such trading services.
The majority of the complaints fall under three categories: a refusal to withdraw the money at one go, identity theft, and software manipulation to ensure that the investor is making a loss.
The first one and the most common one is withdrawal issues. These companies hire proficient salespersons that will call you and pitch before you an offer that you can’t refuse. Owing to the fantastic set of negotiation skills that they have, they are going to persuade you to invest a lot in the company.
Such is the case that they end up investing a lot, and when the time comes to withdraw, it becomes tough for you to do so. They will make all kinds of excuses like tax issues and government problems, and eventually, you will realize it was a scam.
The second one is identity theft. While signing up for a broker, you often end up providing them with valuable information like your company email or your credit card details. What they do is steal that information and sell it for a hefty price tag. Identity theft is pretty common in the financial world.
The third one is software manipulation. When trading with the broker’s help, little do you know that the software or trading algorithms’s design suits the traders needs! Such is the vindictiveness case among these brokers that they hire proficient developers to develop such manipulated algorithms exclusively for a particular broker.
