Many people are coming to the realization that the money they thought they had invested in binary options over the past few years was never actually invested. Victims of an elaborate scam are coming forward as unregulated binary options companies have been exposed for their unethical practices and fraudulent activities. Those recovering money for these victims have seen a surge in activity in recent months as the lid has been lifted on this multibillion dollar global crimewave. As a result of the scam techniques featured below, the binary options industry has been outlawed in all jurisdictions in which it originally operated. Only continuing in new countries where the regulation is lacking or nonexistent.
Binary Options Scam Techniques – The Long Con
There are multiple ways that the fraud can be carried out, which include manipulating the technology platforms to guarantee losses, (after first manipulating them to ensure short term gains to reel you in as a victim). This is the most basic of the fraud tools and utilized by almost every scammer in the industry. \
The binary options scam is built on this technique. The long con is basic psychology; it instills trust and legitimacy for the victim allowing for a bigger deposit (remember, deposit equals loss) in the future. Its scamming 101.
Binary Options Scam Techniques – The Bonus Handcuffs
Another very popular technique amongst the binary options scammers is the “bonus” money – otherwise known as the “bonus handcuffs” because in reality, once you accept your bonus money you are locked into a process which is literally impossible to get out of. The terms of your “free” bonus money include provisions that you must trade 30x your bonus amount before you can withdraw any of the money. This ploy comes straight out of the online gaming sector where the understanding that you are gambling and the odds are stacked against you are part and parcel of the experience. In binary options it is the same, only the client has been duped into thinking that you are here to advise him and help him win. In reality, the advisor who gives you the bonus only makes money when you lose money. This is the flip in dynamics between casino and binary options.
The Dormant Account Scam
There is also something we call the “dormant account scam” which is an additional tool for the binary options scam. How it works is your investor will advise you to minimize your risk (lol) and not place any bets for the upcoming month. This reserved advice is usually met with agreement by the victim as it comes across as a sensible approach. What they don’t tell you is once your account is dormant for a certain amount of time you have to pay a fee. Not only this, but this fee is required before any withdrawal can take place!
The Rogue Trader Scam
Once all bridges have been burnt, the final scam stage is that of the “rogue investor”. This is where all the previous fraudulent activity on your account is blamed on the rogue investor who you spoke with. You will be passed over to a new investor who will apologize profusely and reassure you that this one bad apple has been thrown out of the company for his or her unprofessional actions. In terms of the scam cycle, you are referred over to a new broker, (in reality it could be the same person just a different fake name). Often bonus money will be offered to you again at this stage in the hope that you haven’t realized the terms and conditions that come with such a bonus, and so you think it is a gesture to reconcile your previous experience with said binary scam company.
Don’t be a victim – Fight back
If you experience any one of these techniques it should be judged as a red flag and we would advise ceasing all trading with the company. In terms of recovering your money, it would be wise to save any and all communications as they can be used as evidence in the recovery process. The more evidence of the fraud you have, the smoother the recovery process will be.