Why The Binary Options Market Leads To So Many Scams
Most traders will tell you that binary options are one of the more safe forms of investing. That being said, it’s still trading, and with that, there’s always the potential to lose money, especially with its all-or-nothing design. Knowledge of the markets and how to properly trade are key, and should you start investing without either of these traits, you’re opening yourself up to the possibility of being scammed.
Binary options fraud is actually pretty common, and even though a lack of experience can often be what makes people prone to scams, it can largely be out of our hands. Here’s why.
Why Binary Scams Exist In The First Place
Software Manipulation: Untrustworthy trading platforms are at the root of a large portion of binary scams, and for more than one reason, the main one being software manipulation. Simply by distorting the binary options along with their prices and expected payouts, it’s easy for users to assume that anyone using this software would chalk up their losses to a bad trade. In these instances, the platform is simply pocketing a user’s money by changing positions, which is obviously massively fraudulent.
Payout Refusal: Another sting to look out for, and perhaps one that’s slightly more brazen, is simply refusing to credit a trader’s account following successful trades. A broker might even convince you to add more funds by calling, then refuse any withdrawal attempts and not answer the phone when you come looking for answers. Really, the biggest red flag in this scenario is the fact that you’re being contacted to upload more money to begin with. No legitimate trading platform would encourage this.
Stealing Your Identity: It’s good practice to be careful where you upload your sensitive information, and to keep a close eye on the activity in your bank accounts. Using a dodgy trading platform could see your identity being stolen, whether it’s to take money from your accounts, open credit in your name, or even commit crimes in your name. To negate this issue entirely, be sure to do your research on the platform you choose before signing up and handing your details over.
Exaggerated Returns: The reason we all consider such platforms to begin with is probably low trading fees, right? But if you’re being offered great prices on binary options that can’t be matched elsewhere, it’s hard not to be allured. The problem here, though, is that while the structure of the option might seem like a 50/50 chance, a fraudulent online broker may alter the odds against your favor, giving you little chance for a payout. Those low fees and seemingly unmatched binary options don’t seem so good now, do they?
What You Can Do About It
Being the victim of a binary options scam doesn’t mean it’s game over on getting your money back. There’s a whole industry out there, known as chargeback, that’s devoted entirely to reclaiming money that’s been taken as a result of scams, whether it’s due to trading mail fraud, Ponzi schemes, or anything similar.
Companies like Payback LTD devote all their time and expertise to pulling together all the evidence, swiftly understanding a case, and then working to get a person’s money back; but not before they confront the entities themselves.
The most important takeaway from all of this is to choose your trading platform wisely. Any that encourages you to deposit more money, has lousy customer service, or doesn’t have a legitimate presence online should be ignored in favor of one of the better-known names out there.