Canadian traders have been scammed for $500,000 in binary options

canada scam binary options

Binary options scams catch numerous victims every year, we can’t measure the losses of investors who have fallen victim to these scams but it probably amounts to hundreds of millions of dollars. Moreover, according to the canadian financial authority, the MSC, canadians have lost $500,000 in 6 months to binary options scams. We will teach you how to avoid it below.

The binary options scams

They are really common in the trading industry and are organized by unauthorised binary options brokers. Binary options scams intend to steal investors’ money, scammers who operate this only aim to reach their goal and steal money from honest naive traders.

The binary options scams exist under many forms, but generally scammers create fake binary options brokers. Their platforms are real but by “fake” we mean that they don’t intend to pay the traders back after investments. Salesmen working for these companies are unscrupulous, they usually reach traders by phone and convince their victim to invest on their platform with their lies. Once the deposit is made, investors will never see their money again, all their withdrawal requests will be ignored by the broker.

This way to operate is really common and is the method most used by scammers. However scammers sometimes go even further, for example we have seen cases where the salesman asks for the credit card details of his customers and use them to empty the customers bank account.

The case of canadian traders

The “Manitoba Securities Commission” (MSC) is the canadian financial regulator. They published a report showing that Manitoba’s citizens (In the West of Canada) have been scammed for $500,000 during the last 6 months, by binary options brokers.

The financial regulator doesn’t disclose the quantity of victims of these brokers, but there are some articles from canadian press about this topic on internet. We observed that each victim usually loses several thousands of dollars. This was the case for an 81 year old woman who was conned by these scammers. After a very convincing phone call with a salesman, she decided to start investing in binary options. She started with $250, and mutliplied the deposits until she reached a total deposit amount of $20,000.

Scammers really like this type of target, old people, alone and with no one to talk to. Salesmen working for scammers are able to find the right words to make these “weak” targets feel comfortable, and sometimes call them several times a day, to catch up like a family member would do. Once the victim trusts the salesman, he suggests investing in binary options and will encourage them to deposit the maximum amount of money to the broker.

Always choose a regulated binary options broker

That’s the advice we can give you in order to avoid every type of scam with binary options, always choose a regulated binary options broker who are registered with a financial regulator. Regulated binary options brokers own licences and authorisations from the financial authorities. For example, the broker 24Option is a regulated broker, it possesses a licence from the CySEC and is registered with several financial regulators such as the AMF, the CNMV or the CONSOB.

24Option is the type of broker to trust if you want to experience a good experience in the binary options universe and avoid any trouble. Moreover, we have negociated a bonus on the deposit with 24Option. Therefore , when you open 24Option account using one of the links on our website and make a deposit, you will be granted a bonus of 100% on the amount. Besides that, you also benefit from the BonusBinaryOptions.net guarantee when you create an account at 24Option.com using our links.

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