The case we are going to talk about shows how much binary options trading is based on confidence and good relationships with the binary options brokers, and also illustrate how important it is to choose a regulated binary options broker with good security systems allowing you to detect the suspicious behaviour on its computer system.
The Cyprus police recently published a report talking about the scam activity of a broker’s employee. A 36 year old woman, working for a forex broker (whose name hasn’t been announced), intended to sell her company’s customers details to forex brokers or binary options competitor brokers.
Apparently, an employee found out about this activity and reported her to the police. The forex broker’s directors found out that this woman used her professional computer to copy details about customers to an external hard disk. This woman would have tried to sell this information for the amount of €6,500.
Policemen pretended to be potential buyers working for a competitor broker, and made an offer that she accepted. To receive the payment, the woman planned a meeting with the undercover policemen in a café. Once the money was given to the woman and the hard disk was in policemen’s hands, she was arrested and confessed everything. She has been sentenced in court but the punishment hasn’t been revealed yet.
Source : CyprusMail
Imagine that you own a random business, what about the idea of getting your hands on your biggest competitor’s data ? Of course it would be very dishonest but once the ethical issue is put aside, you would realise how useful it could be for your business. With that list of hundreds or thousands of “qualified” customers (“leads” in the marketing vocabulary), you could get in touch with many potential clients and send them a better offer or product than your competitor, in order to progressively steal its customers.
This practice seems to be common in the financial industry. Generally, it’s the not regulated brokers that will intend to get this type of data, the broker NextOption has already been part of this type of practice. If you deliver this data on a silver platter to unauthorized brokers, a large quantity of them will be interested and will agree to make a deal. Thanks to that list the brokers will be able to contact the phone numbers of the potential clients and use their knowledge to lure their future victims. If the broker who wants to get that list isn’t authorized, it will be able to commit dozens or hundreds of binary options scams. Potentially, this list of contacts can bring hundreds of thousands of euro, that’s why they are generally bartered for several thousands of euros.
This example of stealing and selling customers’ data isn’t an isolated case in the financial industry, there are probably many other similar cases that haven’t been mediatized. The financial industry is unfortunately full of tumours and dirty money. Scamming practice is very common, with regard to the selling of data there is a lot of fraud catching investors.
Binary options scams are common because of the popularity of binary options on internet. It appears that this product pleases investors, even if it’s sometimes risky and requires perfect management of the risk. It allows investors to earn money quickly. Indeed, some binary options brokers enable the speculation on short terms with binary options on deadlines of only 60 seconds. This possibility to earn money quickly attracts netsurfers to binary options brokers and scammers take this opportunity to develop their platform, aiming to steal investors’ money and never repay them.
As an investor, to avoid all of these scams, you need to choose a regulated binary options broker or a broker registered with financial regulators. The broker 24option.com is a good example of a regulated broker, as they own the licence of many european regulators (CySEC, AMF, BaFin, CNMV, CONSOB, FCA). Furthermore 24Option is one of our partners with who we have negotiated a bonus on the first deposit. Generally you have a 20% bonus at 24Option on your first deposit, but using one of the links on our website to register on 24Option, you will benefit with a 100% bonus. The BonusBinaryOptions.net guarantee is also part of your privileges when registering using our links.