What Are Binary Options Scams?
Binary options scams occur when a fraudster uses the cover of binary options contracts to make money illegitimately. The semi-regulated nature of binary trading has created a large grey area for bad actors to operate in. Dodgy brokers tend to promote themselves on social media, online or via bogus profiles on messaging apps. They will often entice customers to their ‘platform’ using promises of huge returns, images of luxury goods and fake expert or celebrity endorsements. The websites run by binary options trading scams can appear convincingly professional, making them difficult to spot.
Once an unwitting customer has opened an account with the phone broker, the scam will employ various tactics to steal their investment funds (and then some). Binary options trading scams may encourage investors to make a large upfront deposit, before charging them enormously high commissions, ‘taxes’ and fees. Sadly, it is often impossible to recover the lost money.