Investors looking for an additional source of income have flocked to Binary Options. This is a form of trading in which an individual deposits their money and makes a prediction about whether the price of a commodity will rise or fall. If the investor guesses correctly they will receive the monetary reward, otherwise they lose their investment.
This monetary gain practice has quickly become popular as it doesn’t need investors to hold or own any particular goods or stocks. Additionally, the rewards are instant, so there is no need for a long wait. It is no wonder why so many brokers offer this trading system. However, where there are eager investors you’ll find scammers to prey on them, and so binary options scams have flooded the web
How Binary Options Scams Work
Like with many investment scams, the fraudulent organization will start by setting up a fake trading platform. They will try to emulate the design of legitimate brokers, and they will copy the content from reputable sites. Additionally, the crooks may advertise on social media, thus making their money trap appear genuine.
The potential binary options enthusiasts are lured by the incredible ROI and trading conditions. As a result, they send money to the platform and it shows favorable results. The depositors’ binary options predictions are always spot on and they are led to believe they are brilliant binary options experts as they are constantly winning. Unfortunately, that is only an illusion as there is no actual trading.
The scammers fabricate results and market conditions to manipulate the target into thinking they are making a fortune. This encourages the victim to invest bigger and bigger amounts of money, while their screen shows they are amassing wealth.
Eventually, when the target tries to collect their fantastic earnings they discover their money is not easily accessible. Commonly, they are met with additional withdrawal fees or transfer costs. Even if they pay this, they can’t access their funds, and slowly but surely they realize they have lost money.
Warning Signs of Binary Options Fraud
Since avoiding an online scam altogether is the best way to protect your hard-earned money, we will share with you tips and tricks on how to recognize a scam. If your potential broker shows the following red flags you should consider whether to invest money into their trading platform.
- The trading conditions are unrealistic – if they are too good to be true, they are not.
- You can’t make withdrawals of large amounts easily.
- You need to pay transaction or withdrawal fees to get your money.
- The broker is not regulated or registered in any country.
- If the broker is regulated or registered, stay away from those who are situated in island countries like Saint Vincent and Grenadines.
- You are constantly winning.
- The broker offers a private assistant who instructs you when to send money.
- Negative reviews on reviewing platforms like TrustPilot are certified red flags.
- The platform promotes on social media a state-of-the-art trading program that makes binary options risk-free.
Don’t let Binary Options Scammers Win
Sometimes a binary options scam might not show any red flags so the victims need to figure out what to do when they have lost money. In these cases, it’s important to take action. Money Back Experts Step-by-Step can help binary options scam victims. The guide will aid you with the preparation for your case when disputing with relevant institutions for reimbursement so be sure to check it out.