Binary options were presented to investors as a simplified and fast way to make money. However, the lack of regulation and monitoring led to a boom of binary options scams. If a broker has made unsolicited contact with you about an irresistible investment option, it could be a Binary options scam.
Scammers offer this type of investment with vague terms and offer unrealistic bonuses. So, if someone offer’s you an investment that meets those criteria, you should look into the firm online.
Many people have been stung by these scams, and information is widely available on illegitimate investment firms.
How Do Binary Options Work?
Binary options are a form of investment that reduces the complex fluctuations of the market to a simple yes or no. Investors are essentially betting whether a particular asset or stock will reach above or go under a specific price. At no point during the investment are you in possession of the commodity you’re betting on?
As a result, all you have is a bet on which direction the price is going to go. There isn’t an exchange of actual products, allowing fraudulent agents to develop binary options scams.
Binary options are somewhat similar to CFDs, an agreement for one party to pay another an amount at a later date based on the change in the price of a certain asset. In both cases, the investor doesn’t own the asset at any time.
Binary Present Themselves as Legitimate Investment Options
Illegitimate investment firms claim that binary options can lead to significant profits. They make use of phony testimonials, alleging that past investors have made it big with binary options.
This entices regular investors to take a crack at it themselves. These investors are essentially gambling their money away. Binary options scams are sometimes worse than gambling, as firms will make up excuses to deny withdrawals to investors who have beat the odds.
Binary Options Scams Are Common Online
Like any other type of fraud, binary options scams prey on a person’s inexperience and unfamiliarity with a particular topic. These scams are marketed on social media and other websites as quick and easy money for amateur investors.
In addition, they falsely promise a guaranteed return on every investment. Some investors have a bit of luck and find success in their first binary options venture. As a result, this makes them overconfident and more likely to fall victim to the binary options scams of illegitimate investment agents.
How You Can Stand Up for Yourself Against Fraud
Many fraudulent investment brokers will offer binary options and keep the money you’ve given them. This flagrant fraud is unambiguously illegal, and those who fall victim to it have legal protection. It might seem daunting that your funds are now sitting in some scammer’s wallet, but you have the right and the recourse to set things straight.
We’re here to help you determine your best course of action – please let contact us how you’ve been affected by binary options scams.