Binary Options are called ‘Binary’ because there can be only two outcomes – win or lose. To trade, all you need to do is bet on whether the price of something (such as a currency or precious metal) will rise or fall below a certain amount - if it is correct, you win and get paid. If not, you lose all of the money you originally invested.
These schemes also allegedly involve, among other things, the refusal to credit customer accounts or reimburse funds to customers, identity theft, and manipulation of software to generate losing trades.
Binary Options trading itself is not illegal, but fraudsters have exploited the huge growth in popularity, with companies aggressively targeting social media platforms with flashy commercials promising impressive returns. Fraudulent Binary Options websites are often well-designed and professional looking, and brokers and traders - often working from scripts - will sound friendly, professional and knowledgeable. They will be paid on commission and have no interest in ever making successful trades for the ‘investor’. In fact, we believe they will often use the victim’s credit and personal information to access further funds without the victim’s knowledge.
Report fraud and cyber crime and receive a police crime reference number.