You have probably heard about identity theft wherein every year thousands of people are being robbed of their personal information that criminals use for their fraudulent activities (reproductions of false identification documents or bank checks, requests for consumer loans, bank fraud, etc …). But were you aware that identity theft does not just occur among individuals, it also takes place in companies and the online trading world is also affected.
The regulator of French financial markets AMF (financial markets authority) has recently published on its website a statement to warn French investors against the growing trend of companies offering binary options trading and abusing the personal details of other companies; here we are talking about company names, license numbers, logos and images. The AMF warns the public against unauthorized brokers that impersonate binary options brokers that are licensed by the financial authorities, by using their details illegally, which is actually a real identity theft of authorized companies to offer their services.
The AMF reminds that binary options are products for investors that are highly speculative. Therefore, it is imperative to choose a binary options broker that is regulated by the AMF. If a trader deposits money with an unauthorized binary options broker and suffers a scam and loses money, it will be very difficult to recover the funds and to receive compensation from the regulator since compensation can only be obtained if a trader encounters a problem with a regulated broker (which happens very rarely).
Identity theft is a crime wherein criminals use the identity of other individuals or companies. If a thief (person or company) is able to access certain personal information of other individuals or companies, he can use them to commit fraud on their behalf. Generally when identity thieves impersonate other people, they cheat in order to obtain financial gain.
Nowadays, Consumer credit fraudsters often occur, which you may have already heard about. Consumer credit fraudsters try to obtain a lot of data specific to a single individual (copy of identification card, IBAN, recent pay slips and tax notice) in order to establish the application files of cash loans to banks and credit agencies. Thus, they sometimes get tens of thousands of euros in this manner by usurping an identity and the usurped individual who never borrowed money or even applied for credit finds himself forced to repay the sums of money received by fraud on his name.
However, you may not be aware that identity thefts are also taking place among professionals, in companies and more particularly in the binary options industry. Just a few months ago, we have seen the OptionWeb broker being usurped by the OptionWebs broker. For example, this identity fraud among binary options brokers is classic and recurrent and the AMF has taken notice of it. In fact, many unauthorized brokers are quick to impersonate reputable and licensed binary options brokers, wherein they clearly state the license numbers from financial regulators on their websites that do not belong to them in any case. In the same genre, brokers provide for example in the general conditions of their website, information that implies that they belong to companies with licenses (while they belong to other companies), during telephone calls that aim at soliciting individuals in order to lure them to invest with them; they carry out the same kind of practices and pose as regulated brokers when in reality they are not.
When one wishes to embark in binary options trading and do not want to take any risks with regard to scammers and fraudsters present in the online investment industry, it is imperative to choose a regulated binary options broker through which to speculate. Regulated binary options brokers are brokers that have one or more licenses from financial regulators in the world. To obtain the licenses of regulators, brokers have passed certain examinations and presented detailed records of their practices and operations. When these applications were approved and brokers’ practices were audited by the regulators, the latters have issued their licenses to reflect the seriousness of such brokers.
Nowadays, there are many regulated binary options brokers; among the best known ones, we can list the example of 24Option or TopOption. Each of these two brokers have ten licenses from European financial regulators. Please note also that opening a 24Option account or a TopOption account entitles you to a 100% negotiated bonus on deposit, whereas both of these brokers do not typically offer such high bonuses to their new customers.