UK Authorities Finally Regulate Binary Trading Scam
The binary trading scam industry has been operating for over a decade. You would think that as the years pass and more information is known, the scam would dwindle down as the future potential victims become aware of what is happening.
In reality, what has happened in the UK has been the opposite (see image below). As the years have passed, the boiler room binary options scams have sharpened their scamming blade while at the same time, have been supported by sophisticated marketing and media platforms that work to nullify the suspicions of future victims. The brands may change, the people on the other end of the line may change, but the tell-tale signs of a scam binary options broker remain consistent.
Binary Options Regulators New Year’s Resolutions
Up until recently, the binary options industry was regulated under the Gambling Commission in the United Kingdom. The new proposals will bring this entire industry under the FCA (Financial Conduct Authority). This distinction is important as being regulated by the FCA comes with many restrictions, checks and licenses that the scam operators will find very difficult to meet. It should strike as a red flag to anyone that has previously dealt with binary options that they were ever considered as a gambling tool, yet advertised as an investment tool. (often advertised as a guaranteed win investment opportunity). Just imagine speaking to the person who “advises” you how best to place bets at an online casino. Then, imagine that this “adviser” gets paid a percentage of everything you deposit i.e. everything that you lose. This is the dynamic of the unregulated binary options operations. It is a simple scam, wrapped up in sophisticated and convoluted packaging in order to keep you, the victim, in the dark as to what is happening.
2017 Reactive to 2018 Proactive
2018 will be known as the year that the authorities began taking initiative. The end of 2017 saw unprecedented corporate raids across London as Operation Broadway teams conducted inspections and disruption raids at over 100 offices in the City and Canary Wharf that they believed to be a part of the binary trading scam industry. What triggered this response was a combination of the uptick in consumer complaints reaching record highs and the staggering amounts that people had been duped out of: average loss per report of over $22,000. Those behind the binary trading scam industry have setup such a sophisticated apparatus of deception that they are able to milk their victims dry. There are many victims of this fraud that still, to this day, do not realize that they were the target of a crime, instead, thinking that they chose bad investments and ‘lost to the market’. The reality is that they’re money was never invested in anything.
What to do if you are a victim?
If you believe that you were a victim of an unregulated binary trading scam operation, the first thing you should do is stop depositing anymore money and do your own research. There is a joke that goes “where is the best place online to hide a dead body? The second page of google!”. Look beyond the first page as many of the results will in reality be sponsored and promoted content from the scam artists so as to give the illusion of their credibility.
It is always worth the extra few minutes to dig a little deeper. You will be surprised at the plethora of information out there beyond the first page of google. Next, collect the information that you have. It’s all in the details and the more evidence you collect, the swifter and quicker the recovery process will be for you.
Finally, speak to a professional, understand your position and your options. The first step to recovery is understanding what really happened to your money.