Investors lose over £87k a day to binary options fraud

Fake Investments In Binary Options

Investors get options in binary like cryptocurrency, CFDs or forex, and such adverts are aggressively promoted online through social media commercials. The FCA states investors lost over £87k a day into binary frauds. 

Such platforms promise to quickly deliver higher returns and depict the luxury lifestyle, expensive watches, and cars to attract people to invest. However, once the investment is made, they distort prices and ask the victims to pay huge charges to close the account. 

Further, they may not pay anything. Many financial experts consider themselves intelligent but are conned by cheats and are often too embarrassed to admit their ignorance. 

Certain binary options exist where all products and services are offered online, and the user can use a proprietary trading platform to buy products. 

In addition, some third-party techniques allow the investors to gain through investment for a short duration, but the victim can't withdraw all the money they deposit. Various manipulative techniques and fee structures are used to conclude such trades.

The tricksters post lucrative luxury photos of exclusive locations with expensive high-end products like watches and supercars to allure people into buying. They promise that a small amount like £100 can get over £1,000, but as the victim transfers the money, they never get anything in return. 

The growth in the number of people targeted by online scams shows the profile of victims is transforming from over 55 to younger buyers, where people under 25 are 13 per cent more likely to trust the offered options over social media. 

At least one in five customers claim they believe the offer when there are positive testimonials and reviews from previous customers. 

However, the professional appearance of the websites with positive customer reviews, statements, logos and other types of ads tempt investors into buying in con plans, and there are huge possibilities the investors will not see any money back if the firm is not FCA authorised.

In 2018, the binary options became a regulated product, meaning the FCA should authorise the options. Binary has two options, either win or lose, and one can choose from commodities like gold, stocks or oil, and other assets to buy. 

How To Protect Yourself? 

• It would be best to reject unexpected communication made online, on social media, or over the phone.

• Before investing, check the FCA Register to see if the individual is authorised or if there is a warning list to avoid.

• One should seek professional advice from an expert before making a decision.

• If you get any social media links to join a broker or earn through a small investment in binary, avoid it.

• Do not divulge your financial and personal details to an unknown, unauthorised firm or individual, and do not agree to send money upfront without enquiring about the offer.

• The brokers pretend they are investing on behalf of the customer. Nevertheless, they depict the profit only to get more investment from the victim and never send the profits into the customer's account.

• The broker appears to be a knowledgeable and professional individual who aims to get the victim's credit and personal details to access funds without the victim's knowledge.