Binary options are (very) popular; therefore this investment activity which makes it possible to earn money does not only attract honest investors, it also attracts people who have no remorse and who do not hesitate to scam honest and naïve individuals. Because of the articles evoking Forex and binary options scams worldwide that have recently been published in the French press, we are writing in detail about this scourge that affects the online investment industry.
Unfortunately, scams are very common and recurring in Forex and binary options trading. In fact, if the scammers are moving towards the investment world and especially towards this binary options speculative product, it is because this type of trading is relatively simple and makes it possible to benefit from the financial markets, hence it attracts many people. Binary options have never been so popular than at the present time and everyone wants to get involved in. Hence, this is the ideal playground for scammers who pose as binary options brokers (as they are and will remain crooks, nothing else).
As you have realized, some malicious individuals create their own brokers (or they rent them as white marks at platform developers), except that instead of offering people to earn money by speculating on the price of financial markets, they will simply take their money without ever repaying them. This is the main binary options scam. Implementing all the marketing and technical resources in order to lure in investors with high profitability represents the daily routine of unscrupulous scammers who are acting as unauthorized binary options brokers. As soon as the investors’ money end up in the hands of crooks, the latters generally give no sign of life or they try to hit two birds with one stone by trying to convince them to deposit more money in order to repay the totality of their capital (supposedly …).
Obviously the scammers do not stop at this scam, their scams are numerous; some brokers are experts of credit card fraud and use the bank or personal details of their customers to their end, while others specialize in fraudulent bank transfers and attempt to empty and mishandle the bank accounts of their clients (social engineering).
Two French online newspapers (Les Echos and LeJDD.fr) have recently published online press articles regarding Forex and binary options scams that would have been established between France and Israel. This scam involves the one that we have mostly discussed in the previous paragraph; i.e. the scams against investment traders. This scam is very common with unregulated brokers as discussed and we just have to see the disasters caused by the one pointed out by the French and Israeli investigators, and whose damage is estimated at 105 million euros!
The scam in question has partly been achieved by 5 Forex and binary options brokers, which are: 4XP, bforex, Tradax Sisma Capital, and Aston, with the same managers hiding behind each one of them. It is after a long investigation and several interviews conducted by the judicial authorities in France and Israel that the suspects have been clearly identified as well as the operation of this scam that they have implemented. The investigators point out that the brokers promised their victims relatively high returns on investment, between 20% and 88%. Unfortunately, many victims have fallen into the trap and some of them have lost up to € 1.3 million each, as revealed by the sources.
Investors have simply been cheated, it is their naiveté that led them to entrust their money to these crooks. In fact, brokers who were in no way authorized to provide their investment services and that had no license from any financial regulators, simply took advantage of references, license numbers, company names, fictitious and usurped addresses (see: see warning of the AMF against the usurpations of binary options brokers) to “prove” that they were serious. Without checking this information, investors have given up their money and once in the hands of brokers, these latters never repay it, but instead the funds began its journey between offshore bank accounts to end up in tax havens.
To avoid getting scammed when solicited by a binary options broker, it is imperative to verify which company it belongs to and especially if it is regulated by financial regulators.
The best way not to be cheated is quite simply to choose a regulated binary options broker to practice trading. Regulated binary options brokers are brokers that have been approved by the financial authorities; their services are recognized as being of quality and as being in full compliance with the financial regulations.
For example, 24Option is a regulated binary options broker to opt for. It turns out that this binary options broker is licensed by more than a dozen European financial regulators. Thus, it can freely offer its services to traders in the European Union. The CySEC (Cyprus), the AMF (France), the BaFin (Germany), the CNMV (Spain), the CONSOB (Italy) or the FCA (UK), are part of regulators who have issued their licenses to this broker. Hence, 24option has nothing to prove when it comes to its seriousness.
Also note that if you proceed to opening 24Option account through one of the links on our website, you can enjoy a negotiated bonus on deposit of 100% (instead of 20%) and the BonusBinaryOptions.net guarantee, thus allowing you to receive the support of our team.