Binary Options – Britain’s Growing Fraud Problem
Losses from “binary options” trading have risen from £6,200 in 2012 to £27m last year, an increase of 400,000%.
I read an article from Sky news Correspondent Adele Robinson about the latest online investment scam targeting people on social media. This is exactly why I created this website as I am sick of good honest people getting scammed!
There has been a 400,000 rise of money lost by UK victims in the last six years, and no that is not a mis type.
“Figures from Action Fraud show the amount lost to “binary options” trading increased from £6,200 in 2012, to £27m in 2017 alone, with the total currently standing at £61m.” Skynews.com
Binary options is risky at the best of times but it is suspected that criminal associations often based abroad are helping to co-ordinate this multi-billion pound industry/scam.
This is a form of gambling on the value of various materials such as gold. A binary option is baiscally just a financial option where you pay either by way of a some fixed monetary amount or nothing at all. There are two main types of options to choose from and they are the cash-or-nothing option and the asset-or-nothing option.
Your gambling on an outcome of a price of a commodity such as gold going up or down, with the pay-off being a fixed amount or nothing at all. Investors operate with the view that they can get high returns on small investments.
Adele Robinson states in the article that one of the UK’s highly regarded Consumer groups Which? describes binary options scamming as “Britain’s biggest investment con”
The most popular methods of targeting would be victims is for illegal companies target victims through pop up adverts online through social media and google adverts and also cold-calling.
It has been reported that by Action Fraud that there the substantial increase in money lost “binary options” trading hasincreased from £6,200 in 2012, to £27m in 2017 alone, with the total currently standing at £61m.
This investment idea came came on the seen ten years ago but this form of trading has grown rapidly in recent years.
“Detective Sergeant Alex Eristavi from the National Fraud Intelligence Bureau, run by the City of London police, says people are being defrauded on a daily basis.”
“There is no typical victim,” he told Sky News, “they are just ordinary folk like you and me. The youngest one is 19 years old, that we have recorded so far, and the oldest is 93, so it’s a wide spectrum.
“It’s fair to say with binary options coming into play the average victim’s age of investment fraud has dropped because previously it was over 60 and now it’s early 50s.
“It’s because the younger generation are taking part in this activity, and it could be easily explained as social media is a lot to do with it, the advertisements and the pop ups etc.”
How Can Illegal Binary Option Firms be Prevented?
At the moment it is the Gambling Commission that regulates Binary options trading however fromJanuary 2018 the Financial Conduct Authority will take over. This will lead to companies complying with strict guidlines to be allowed to trade which hopefully will prevent these illegitimate firms from operating.
I hope a system is devised where social media sites and search engines work with authorities to pick up on the adverts with all the algorythms and web crawlers available it can be done surely?
These companies need to work closer with a countries authorities to try and eradicate these faceless criminals.
Although the UK will monitor binary options two countries have stopped the problem altogether by banning binary options all together they are Israel and Canada. Problem solved!
You do not just go and buy a house without a surveyors report after all.
Some victims have lost all their life savings on binary options. after answering an advert online. it does prove that before investing you need to do your research. You do not just go and buy a house without a surveyors report after all.
Some victims have reported that in the small print they never read it states that in order to make a cah withdrawal they would have to make 150,000 trades so basdically you will never get your money.
This has lead to health scares for alot of victims as they come to terms with the stress of losing their savings.
Concerns have also been raised for students who are looking at ways to to help with student costs. it is not just older people being targetted, estimates of age is betweene 19 – 93 according to figures.
Police are advising the public that “if you don’t know the field, don’t get involved in it” as there are “so many rogue companies out there”.
Which? have out its own investigations into binary options companies and found evidence of “bad practice across the board”
tactics discovered were agressive selling techniques over the phone and unreasonable terms and conditions such as customers being asked to invest upto forty times more than there initial investment just to get profits withdrawn.
Which also discovered that where the actual data being used was rigged by illegal companies which meant that an initial investment would return some form of profit in return however thereafter you would receive loss after loss.
Why do people invest?
you would think that the type of people who invest in these type of scams are gullible and uneducated but they are by no means that at all. The Criminals know how to market and word the pitch and set up websites that look credible. The lurre of vast profits and the get rich quick scenario is put to play here big time you can bet that.
“Britons lose millions in online ‘get rich quick’ Schemes”
it is just more proof that get rich quick schemes are not going to work. you need to plant the Acorn and nurture it before growing an Oak tree and it is the same with an online business or bricks and mortor business.
If you want to invest your money then invest it in your self and educate yourself. In January 2017 that is what I did after many to good to be true work from home businesses were just that, too good to be true!
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