Funds Recovery - Scam Recovery company

Increased Cybercrime in Pandemic

The coronavirus pandemic has really brought the world at a standstill. People all over the world have been confined to their homes. Henceforth, work is now also regularly being conducted from houses.

People have been in general spending a lot more time on the internet since the pandemic. Therefore automatically there has been a significant rise in the global cybercrime and trading scam rates.

WHO has reported a fivefold increase in cybercrime cases worldwide. Huge sums of money are being raided by novice traders and other inexperienced online users. These cyber-attacks and scams are not at all specific and can present themselves in varying forms.

Even after the scam is detected, it is really difficult for online victims to track down these phony companies and get back their lost funds. Now with travel restrictions and worldwide lockdowns, it seems all the more improbable.

Funds Recovery – A Boon

In comes the need for Funds Recovery, an online funds retrieval site based off Ramat Gan, Israel.

The company specializes in getting back the lost money of its clients easily and fast. Even without the coronavirus pandemic, the firm would continue all its businesses online. This really helps now as the workforce is well equipped at handling cases over the internet.

The users may be ready to take the necessary steps to recover their lost funds but with all the restrictions it is still very difficult. Hiring a lawyer, contacting the firms, building up a case, etc all these take a lot of time and patience. Now if the firms were situated in a different country then the users are already at a loss with all the travel bans.

Better and Swift

The employees at Funds Recovery are exactly present to handle these sorts of problems and even more complicated cases. Clients only need to register a complaint either directly from the site or via email.

By providing a few basic details and describing the scam, clients can send their case for review for free. The experts then discuss if at all the money is recoverable. If yes, it contacts back the customers and agrees upon the arrangements of the case along with pricing. It is that simple.

Once the arrangements are made users can leave the whole process of money recovery on the firm. The transparency of the procedures gives the clients a clear view of the company’s actions.

Better steps taken

The company has a high record of solved cases. This is due to its methodical approach towards the case solving, something which was duly practiced even before the lockdown. A few of the steps involved are stated as follows.

Quick, Experienced and Variety

Funds recovery not only handles different scams but also educates the online population about them. These include:

With a well-tested strategy for each of the aforementioned kinds, a superior workforce coordinates and contacts all the institutions even in this pandemic to obtain desired results.

For complex cases as well, the firm tries to come to a solution fast. This is important as with increased delay the scammer only gets harder and harder to catch. Funds Recovery is one of the fastest assets recovery sites out there and, due to that, is able to maintain a long and growing list of highly satisfied customers.

Victims might try to get back their money on their own but it is a difficult and time-consuming procedure involving a lot of work and coordination.

With Funds Recovery, even at the time of this pandemic, clients can be sure that professionals are working efficiently on recovering their lost funds as fast as possible.

 

In 2016, a new way to trade cryptocurrency was introduced – BitConnect. By using BitConnect, users could “lend” their current Bitcoin holdings to BitConnect in exchange for new coins (Bitconnect Coin or BCC) that would earn interest during the life of the loan. Sounds good in theory, right? Of course, theory is all that existed – BitConnect was actually a ponzi scheme with no hard assets and no license to issue securities. Known as a high-yield investment program (HYIP), BitConnect paid initial investors huge profits from the cash brought in by new clients. The scam eventually ran out of money and BitConnect Coin crashed more than 90% in a single day. In an instant, $2.5 billion vanished and investors were left with worthless tokens.

Financial scams are all around us and even educated money managers are susceptible to them. And with the rise of unregulated markets like cryptocurrency and forex, scammers have  more playgrounds than ever to lurk around in. Money makes us emotional, which is why financial scammers will never go away. But that doesn’t mean you can’t protect yourself.

Today’s Most Common Financial Scams

Fraud is inevitable. Federal laws have made it more difficult to pull off financial scams, but you can’t outlaw dishonesty. Scammers persist, especially in unregulated markets like Binary options, forex, and cryptocurrencies. Here’s a few common scams to watch out for today.

Market Gurus – Amateur traders are everywhere on social media and many start a “service” to provide recommendations on stocks, currency pairs, etc. These gurus charge either an upfront or monthly fee for their “service” and proceed to recommend loser after loser (if they don’t disappear entirely). Like professional stock pickers, some gurus may beat the market in the short-term, but most only profit by collecting fees from unsuspecting “clients”.

Fake Forex / Binary Options Brokers – Currency markets trade all over the globe 24 hours a day. They’re also notoriously unregulated and rife with scammers looking for victims. Many of these scammers pose as reputable (but offshore) brokers offering great deals. After happily accepting customer deposits, these brokers refuse to honor withdrawals and do everything possible to keep the funds tied up. Some even purposely orchestrate losing trades for clients!

Cryptocurrency Scams – Fraud with crypto comes in all shapes and sizes. Fake wallets, fake brokers, and even fake coins have taken real money from investors. Cryptocurrency losses have almost no way of being recovered either. Use only a trusted broker to buy crypto.

Online Dating Scams – A modern take on the Nigerian Prince scam, these crooks message unsuspecting marks behind the profile of a potential partner. Always using attractive model-quality photos, these scammers convince their victims that they’re interested in meeting up, but lost their passport / bank card / cellphone and just need a little bit of cash to get it back. Once the eager victim sends the cash in hopes of meeting the attractive stranger, they disappear.

 

If you were a victim of a scam
Get free consultation from our team.

     

    The Psychology of Scammers

    Financial advisor Ben Carlson recently released a book titled “Don’t Fall For It: A Short History of Financial Scams”. According to Carlson, scammers are storytellers – they’re not selling product but an experience or an opportunity. The story may promise untold wealth, a miracle cure, or access to power, but the main point is always the same. The scammer finds something the mark fears and exploits it.

    Fear comes in many forms – fear of illness or death, fear of consequences, or even good old fashioned fear of missing out. Financial scams almost always involve some form of high-pressure sales or knee-jerk thinking. Phrases like “once in a lifetime opportunity” or “this deal won’t be here tomorrow” are often clues that a scammer is attempting to appeal to your emotions and blur your rational thinking. 

    Everyone likes to think they’re rational and would never fall for the Nigerian Prince or Spanish Prisoner gag, but money makes even the most rational person prone to emotional decision-making. In fact, highly-educated and successful people might be MORE prone to scams than their less polished peers. Even those assigned to protect us, like public accounting firms and SEC regulators fall for financial sleight-of-hand. Human beings aren’t robots. We’re emotional creatures prone to illogical decision-making, especially when someone with a nice smile promises us the deal of a lifetime.

    How to Protect Yourself From Financial Fraud

    Thinking you’re impervious to financial scams is asking for trouble. It doesn’t just happen to grandma and grandpa anymore. Young and old, rich and poor, masters degrees and high school diplomas – all are equally susceptible to fraud. To avoid scams, take the following steps:

    Be cautious of anyone offering exclusive or time-sensitive deals. Scammers love to apply pressure and force their victims into ill-advised decisions. Remember this timeless advice: if it sounds too good to be true, it always is.

    Don’t be afraid to ask for credentials. Not only do advisors work long hours and take difficult exams to earn their CFP or CFA licenses, but it also guarantees they act as fiduciaries.

    Have a plan in case you are a victim of fraud. Companies like Funds Recovery work to get your money back from scammers quickly and without hassle. If you’ve fallen prey to financial fraud, contact Funds Recovery and file a complaint.

    You’ll find here some deceitful systems in the industry, how to report the criminals, and how does the scam work. Read the article carefully before investing in Binary Options, who knows what kind of propaganda you might discover out there.

    By enabling investors to trade with restricted assets, and providing a simple & honest way to make money; the binary trading options have gained rapid fame amongst various traders. However, like any other trading method, there are chances that investors can get caught up in binary options scam systems. It is crucial to make sure that the binary trade broker that you are trusting with your hard money is reliable. Beginner investors are the most natural victims of the binary scam, as they are made fool by the fraud binary options scam artists. Make sure that your investment broker is certified and has a good track record as well. In addition to this, you also must know all the necessary information about how to spot a scam artist before starting working with them.

    How does Binary Options Trading Scam work?

    The flashy catchy marketing contents are what get many investors hooked. The promotional content broadcasted by the scam artist is about the simplicity of the process and how investors can earn more and more within days, even within hours!

    Here is how the scam runs in a nutshell:

    • A group of scammers design and develop a website that looks like a legitimate website build for a reputable binary options trading broker.

    • To catch your attention, they use various marketing methods or they can cold call you out of the blue to offer a deal you can’t refuse!

    • They know you will ask for the evidence that the offer is valid. So, they will use a fake makeshift trading signal software and slap a 100% trading accuracy claim on to it.

    • If you trust the data (many does) offered by the scammers and join the scam, you will lose the entire initial investment. This works on various levels. Sometimes the scammer will manipulate the trading data and show you that your bidding was successful and you won. Though they didn’t use your money to bid at all! However, when you would want to credit the amount in your bank account, you will find it is quite impossible to do so. To get the amount you have to pay some charges to the broker and this is where you lose even more.

    • Many times, the scammer will ask their targeted customer for all kinds of information to transfer the fund. It is nothing than another part of the scam. If you provide them the details they need, they will sell your data to the highest bidder, which can be used to steal your identity.

    How to Prevent Becoming a Scam Victim

     

    If you were a victim of a scam
    Get free consultation from our team.

       

      There are a couple of basic areas that investors can consider when evaluating a broker to make sure they stay away from Binary Options Trading Scams. Here are the details that can save you from scammers:

      • Research, research & research. Find out everything about your selected broker. This is your greatest weapon against binary options trading scams.

      • Check for if the broker has a valid license granted by the government regulator such as CFTC, FCA, FSB or ASIC.

      • How desperate your broker is? The broker is frequently contacting you for money? Well, stay away from those calls and brokers.

      • If the broker has a license, does it protect investors/ traders from your nation?

      • How is the record of the broker? Search for everything and if you find they have used some unethical practices before, then stay away.

      • The broker is asking for money in exchange for trading signals software or trading robot before providing a demo? Do not trust them.

      • If your country has a binary options forum make sure you join it, discuss your selected broker and their software before starting investment.

      • The broker’s record is great and after seeing that you are convinced that they will take care of your money? Think again! Research about past and present thoroughly. Because a broker’s past performance doesn’t guarantee the same future results.

      Conclusion

      If you follow the steps outlined in the article, you will be safe and able to avoid all scam operations in binary options. In the end, we would say that successful binary options trading is only possible if you do your research. Take your time, don’t rush. Sure, money doesn’t grow on trees, but it does with time!

      If you have been scammed

      You can report the dishonest organization or scam to us by contacting our helplines or using our reporting form. If you have already invested in a scam, scammers are likely to target you again or sell your details to other shady people. The follow-up scam can be entirely different or linked to the previous fraud, as an offer to get your invested cash back or to buy back the investment after you pay some negligible fee! If you have any concerns regarding a possible scam, contact us immediately.

      Binary options trading is one of the biggest polarizing types of investments out there. Some investors see it as easier or more pleasant than the standard acquisition and sale of stocks. Others see it as a process that is very much involved with gambling, and subject to rigged conditions and other scams.

      Different investors have different experiences with binary options trading, and there’s not certainly a “correct” answer of whether it’s great, bad, reliable, or dangerous. To help you make up your mind, we have created this article, here you will discover what binary options are.

      Binary Options

      Binary options trade is quite distinct from bonds, stocks, and mutual funds; even so, they are simple to understand as well. In this investment method, an investor doesn’t invest in an organization (i.e. Google, Apple, Microsoft, etc.), rather, they bet on price fluctuations in the cost of particular options. Peoples, who bet correctly will gain a predetermined sum of money; those who take the wrong step, well the result is obvious, they lose every penny they had invested.

       

      For example, if your broker is offering a 91 % profit and the USDEUR rate is 1.15562 and you place a USD100 “Buy” for 1-minute expiry, and one minute later if the rate grows to 1.15563, you will get back your invested USD100 and then another USD91.00. If the prediction is right, the investor will recover his or her investment plus a bonus on top—if they’re wrong, the investor loses the whole amount put into the plan. It’s an attractive method of investment because the investors get the result quicker as compared to FOREX and it requires fewer skills.

      Types of Binary Options: A Comprehensive Guide

      In the beginning, there was only one type of trade you could take, called High/Low, or Up/Down, or Call/Put. All of these options are the same thing. However, nowadays, Binary Options presents more flexibility to investors. Traders now can personalize their investment according to their needs. This is beneficial when compared to traditional options. By using this flexibility, binary options brokers introduce a few brand new sets of derivative products that offer exceptional growths. Following is an overview of these various types of Binary options and how they work.

       

      If you were a victim of a scam
      Get free consultation from our team.

         

        High/Low trade: High/Low traders also recognized as Up/Down, or Call/Put investors. This is the most basic type of binary option trade. For the common high-low binary option, the investors buy a binary call option if he/ she thinks the cost of the underlying asset will go up above the present market cost or if the investor decides the underlying asset price will go down, then he/ she will buy a binary put option. If the presumption is correct, the investor will receive a payout. Otherwise, he/ she loses the primary investment. High/Low trades have both short and long expiry times, ranging anywhere from 60 seconds to a few days or maybe longer.

        Here is an example of a High/Low trade: 

        You think that the cost of silver will go up by the end of the trading period, so you look up the silver on your trading platform. You see a High/ Low trade available with an expiry time of a few hours, near the end of the trading day. Believing that the silver price will surely grow above its present price based on your trading methods and expertise, you decided to enter into High/Low trade and picked “High” or “Up” as the direction of the trade. After waiting for a few hours, the cost of silver grows up, your prediction was spot on and you will receive a payout. Congratulations!

        Touch Options

        This is another very common trade type which consists of three types of touch options. These are touch, no touch, and double touch.

        An investor who bets on touch binary options is trusting that the price of a particular option will increase to or over a specific amount. No Touch is a simple variation where an investor bet price will not touch the trigger point within the expiry time. These trades are directional since the trigger point rests in one direction or another, however, they are also more precise than High/Low trades. They can offer higher payouts. On the other hand, an investor who bets on double touch options puts two separate bets on two separate positions. Such an investor gains money if either of these conditions is met.

        The touch trading option is quite different than High/Low trading. When an investor opt-in for a touch option, he/ she places a trigger point, which can be present anywhere on the chart. Generally, the further away the trigger point is from the present cost of the asset, the possibility of earning greater payout grows. A point which is placed near the present price, which is more comfortable to reach offers a lower return, because the risk is lower.

        Here is an example of Touch Options:

        You believe that the stock of Facebook is going to rise within the next couple of hours. You are certain it will reach a particular cost before dropping back down. You put a One Touch trade on the Facebook stock, betting it will touch that price within the next few hours. After 1 hour, you see your assumption was correct, it touches the price you defined, and you make money since the option has not yet expired.

        Sixty Second Binary Options:

        Sixty-second binary options are generally the same as High/Low trade. However, an honest question might arise is that if they are similar then why they are set aside?

        Well, the reason is it’s a specific kind of High/Low binary options trade that takes place in a very short time frame. As the name suggests, each 60 Second trade lasts for a single minute before closing. The abilities needed to be successful in sixty-second trading options are quite unique. There are numerous challenges posed by trading fast which investors do not need to deal with when you trade over longer periods.

        Here is an example of Sixty Second Binary Options: You are browsing the chart of gold in real-time, and your experience says that the gold price is about to increase in the next 60 seconds. You have your trading platform with you and you browse through the gold section, you see a sixty-second option is available which will expire in one minute. Without wasting a second, you put your desired amount you want to trade, now the trade process has been successfully initiated and for the result, you must wait 1 minute. After sixty seconds your prediction became true and 60 seconds later you win.

        Boundary Options: As the name suggests, boundary options offer two price levels; the upper and lower level and both are determined by the investor. The price range can be narrow (i.e. between $11.20 and $11.30) or broad (i.e. between $11.00 and $20.00). The investors’ job is to assume if the cost level of the assets of your choice will remain within the designated range or go beyond that range. The investor has to choose the expiry time as well. The longer the expiry time frame the wider the boundary. In this trading process, an investor wins when options do indeed remain within the defined price range for the predetermined period.

        Here is an example of Boundary Options: Let us take the USD/EUR currency pair for an example. Which right now at 0.7115 and the market is volatile. Hence, the investor believes that the price will not stay in a particular range. Let us have a lower level at 0.7100, a higher level at 0.7128, while the expiration time is 48 hours. If in 48 hours the price of the USD/EUR currency pair is below 0.7100 or grows more than 0.7128, then the trade will be closed on the money.

        You’ll find here some deceitful systems in the industry, how to report the criminals, and how does the scam work. Read the article carefully before investing in Binary Options, who knows what kind of propaganda you might discover out there.

        By enabling investors to trade with restricted assets, and providing a simple & honest way to make money; the binary trading options have gained rapid fame amongst various traders. However, like any other trading method, there are chances that investors can get caught up in binary options scam systems. It is crucial to make sure that the binary trade broker that you are trusting with your hard money is reliable. Beginner investors are the most natural victims of the binary scam, as they are made fool by the fraud binary options scam artists. Make sure that your investment broker is certified and has a good track record as well. In addition to this, you also must know all the necessary information about how to spot a scam artist before starting working with them.

        How does Binary Options Trading Scam work?

        The flashy catchy marketing contents are what get many investors hooked. The promotional content broadcasted by the scam artist is about the simplicity of the process and how investors can earn more and more within days, even within hours!

        Here is how the scam runs in a nutshell:

        • A group of scammers design and develop a website that looks like a legitimate website build for a reputable binary options trading broker.

        • To catch your attention, they use various marketing methods or they can cold call you out of the blue to offer a deal you can’t refuse!

        • They know you will ask for the evidence that the offer is valid. So, they will use a fake makeshift trading signal software and slap a 100% trading accuracy claim on to it.

        • If you trust the data (many does) offered by the scammers and join the scam, you will lose the entire initial investment. This works on various levels. Sometimes the scammer will manipulate the trading data and show you that your bidding was successful and you won. Though they didn’t use your money to bid at all! However, when you would want to credit the amount in your bank account, you will find it is quite impossible to do so. To get the amount you have to pay some charges to the broker and this is where you lose even more.

        • Many times, the scammer will ask their targeted customer for all kinds of information to transfer the fund. It is nothing than another part of the scam. If you provide them the details they need, they will sell your data to the highest bidder, which can be used to steal your identity.

        How to Prevent Becoming a Scam Victim

        There are a couple of basic areas that investors can consider when evaluating a broker to make sure they stay away from Binary Options Trading Scams. Here are the details that can save you from scammers:

        • Research, research & research. Find out everything about your selected broker. This is your greatest weapon against binary options trading scams.

        • Check for if the broker has a valid license granted by the government regulator such as CFTC, FCA, FSB or ASIC.

        • How desperate your broker is? The broker is frequently contacting you for money? Well, stay away from those calls and brokers.

        • If the broker has a license, does it protect investors/ traders from your nation?

        • How is the record of the broker? Search for everything and if you find they have used some unethical practices before, then stay away.

        • The broker is asking for money in exchange for trading signals software or trading robot before providing a demo? Do not trust them.

        • If your country has a binary options forum make sure you join it, discuss your selected broker and their software before starting investment.

        • The broker’s record is great and after seeing that you are convinced that they will take care of your money? Think again! Research about past and present thoroughly. Because a broker’s past performance doesn’t guarantee the same future results.

        Conclusion

        If you follow the steps outlined in the article, you will be safe and able to avoid all scam operations in binary options. In the end, we would say that successful binary options trading is only possible if you do your research. Take your time, don’t rush. Sure, money doesn’t grow on trees, but it does with time!

        If you have been scammed

        You can report the dishonest organization or scam to us by contacting our helplines or using our reporting form. If you have already invested in a scam, scammers are likely to target you again or sell your details to other shady people. The follow-up scam can be entirely different or linked to the previous fraud, as an offer to get your invested cash back or to buy back the investment after you pay some negligible fee! If you have any concerns regarding a possible scam, contact us immediately.

        As many horror stories have been shared lately on different public media, more and more worried investors are asking us about the credibility of binary options trading. Binary options trading is one of the biggest polarizing types of investments out there. Some investors see it as easier or more pleasant than the standard acquisition and sale of stocks. Others see it as a process that is very much involved with gambling, and subject to rigged conditions and other scams.

        Different investors have different experiences with binary options trading, and there’s not certainly a “correct” answer of whether it’s great, bad, reliable, or dangerous. To help you make up your mind, we have created this article, here you will discover what binary options are.

        Binary Options

        Binary options trade is quite distinct from bonds, stocks, and mutual funds; even so, they are simple to understand as well. In this investment method, an investor doesn’t invest in an organization (i.e. Google, Apple, Microsoft, etc.), rather, they bet on price fluctuations in the cost of particular options. Peoples, who bet correctly will gain a predetermined sum of money; those who take the wrong step, well the result is obvious, they lose every penny they had invested.

        For example, if your broker is offering a 91 % profit and the USDEUR rate is 1.15562 and you place a USD100 “Buy” for 1-minute expiry, and one minute later if the rate grows to 1.15563, you will get back your invested USD100 and then another USD91.00. If the prediction is right, the investor will recover his or her investment plus a bonus on top—if they’re wrong, the investor loses the whole amount put into the plan. It’s an attractive method of investment because the investors get the result quicker as compared to FOREX and it requires fewer skills.

        Types of Binary Options: A Comprehensive Guide

        In the beginning, there was only one type of trade you could take, called High/Low, or Up/Down, or Call/Put. All of these options are the same thing. However, nowadays, Binary Options presents more flexibility to investors. Traders now can personalize their investment according to their needs. This is beneficial when compared to traditional options. By using this flexibility, binary options brokers introduce a few brand new sets of derivative products that offer exceptional growths. Following is an overview of these various types of Binary options and how they work.

        High/Low trade: High/Low traders also recognized as Up/Down, or Call/Put investors. This is the most basic type of binary option trade. For the common high-low binary option, the investors buy a binary call option if he/ she thinks the cost of the underlying asset will go up above the present market cost or if the investor decides the underlying asset price will go down, then he/ she will buy a binary put option. If the presumption is correct, the investor will receive a payout. Otherwise, he/ she loses the primary investment. High/Low trades have both short and long expiry times, ranging anywhere from 60 seconds to a few days or maybe longer.

        Here is an example of a High/Low trade: 

        You think that the cost of silver will go up by the end of the trading period, so you look up the silver on your trading platform. You see a High/ Low trade available with an expiry time of a few hours, near the end of the trading day. Believing that the silver price will surely grow above its present price based on your trading methods and expertise, you decided to enter into High/Low trade and picked “High” or “Up” as the direction of the trade. After waiting for a few hours, the cost of silver grows up, your prediction was spot on and you will receive a payout. Congratulations!

        Touch Options

        This is another very common trade type which consists of three types of touch options. These are touch, no touch, and double touch.

        An investor who bets on touch binary options is trusting that the price of a particular option will increase to or over a specific amount. No Touch is a simple variation where an investor bet price will not touch the trigger point within the expiry time. These trades are directional since the trigger point rests in one direction or another, however, they are also more precise than High/Low trades. They can offer higher payouts. On the other hand, an investor who bets on double touch options puts two separate bets on two separate positions. Such an investor gains money if either of these conditions is met.

        The touch trading option is quite different than High/Low trading. When an investor opt-in for a touch option, he/ she places a trigger point, which can be present anywhere on the chart. Generally, the further away the trigger point is from the present cost of the asset, the possibility of earning greater payout grows. A point which is placed near the present price, which is more comfortable to reach offers a lower return, because the risk is lower.

        Here is an example of Touch Options:

        You believe that the stock of Facebook is going to rise within the next couple of hours. You are certain it will reach a particular cost before dropping back down. You put a One Touch trade on the Facebook stock, betting it will touch that price within the next few hours. After 1 hour, you see your assumption was correct, it touches the price you defined, and you make money since the option has not yet expired.

        Sixty Second Binary Options:

        Sixty-second binary options are generally the same as High/Low trade. However, an honest question might arise is that if they are similar then why they are set aside?

        Well, the reason is it’s a specific kind of High/Low binary options trade that takes place in a very short time frame. As the name suggests, each 60 Second trade lasts for a single minute before closing. The abilities needed to be successful in sixty-second trading options are quite unique. There are numerous challenges posed by trading fast which investors do not need to deal with when you trade over longer periods.

        Here is an example of Sixty Second Binary Options: You are browsing the chart of gold in real-time, and your experience says that the gold price is about to increase in the next 60 seconds. You have your trading platform with you and you browse through the gold section, you see a sixty-second option is available which will expire in one minute. Without wasting a second, you put your desired amount you want to trade, now the trade process has been successfully initiated and for the result, you must wait 1 minute. After sixty seconds your prediction became true and 60 seconds later you win.

        Boundary Options: As the name suggests, boundary options offer two price levels; the upper and lower level and both are determined by the investor. The price range can be narrow (i.e. between $11.20 and $11.30) or broad (i.e. between $11.00 and $20.00). The investors’ job is to assume if the cost level of the assets of your choice will remain within the designated range or go beyond that range. The investor has to choose the expiry time as well. The longer the expiry time frame the wider the boundary. In this trading process, an investor wins when options do indeed remain within the defined price range for the predetermined period.

        Here is an example of Boundary Options: Let us take the USD/EUR currency pair for an example. Which right now at 0.7115 and the market is volatile. Hence, the investor believes that the price will not stay in a particular range. Let us have a lower level at 0.7100, a higher level at 0.7128, while the expiration time is 48 hours. If in 48 hours the price of the USD/EUR currency pair is below 0.7100 or grows more than 0.7128, then the trade will be closed on the money.

        Many investors use the Internet and social media to help them with investment decisions. While these online tools can provide many benefits for investors, these same tools can make attractive targets for criminals. Criminals are quick to adapt to new technologies – and the Internet is no exception.

        The Internet is a useful way to reach a mass audience without spending a lot of time or money. A website, online message, or social media site can reach large numbers with minimum effort. It’s easy for fraudsters to make their messages look real and credible and sometimes hard for investors to tell the difference between fact and fiction. If an investment promotion grabs your interest, research the “opportunity” even before providing your phone number and email address. Otherwise, you may be setting yourself up to be targeted for investment fraud.

        The key to avoiding investment fraud on social media sites or elsewhere on the Internet is to be an educated investor. To learn specific steps you can take, see What You Can Do to Avoid Investment Fraud. Below, we tell you where various types of fraud may show up online such as Social media, Online investment newsletters, Online bulletin boards and chat rooms and Spam.

        Social media

        Social media, such as Facebook, YouTube, Twitter, and LinkedIn, have become key tools for U.S. investors. Whether they are seeking research on particular stocks, background information on a broker-dealer or investment adviser, guidance on an overall investment strategy, up to date news or to simply want to discuss the markets with others, investors turn to social media. Social media also offers a number of features that criminals may find attractive. Fraudsters can use social media in their efforts to appear legitimate, to hide behind anonymity, and to reach many people at low cost.  For additional information, see these Investor Alerts and Bulletins:

        Investor Alert: Social Media and Investing – Avoiding Fraud
        Investor Bulletin: Social Media and Investing – Understanding Your Accounts
        Investor Bulletin:  Social Media and Investing – Tips for Seniors

        Always be wary of unsolicited offers to invest. Unsolicited sales pitches may be part of a fraudulent investment scheme. If you receive an unsolicited message from someone you don’t know containing a “can’t miss” investment, your best move maybe to pass up the “opportunity” and report it to the SEC Complaint Center.

        Online investment newsletters

        While legitimate online newsletters contain valuable information, others are tools for fraud. Some companies pay online newsletters to “tout” or recommend their stocks. Touting isn’t illegal as long as the newsletters disclose who paid them, how much they’re getting paid, and the form of the payment, usually cash or stock. But fraudsters often lie about the payments they receive and their track records.

        Fraudulent promoters may claim to offer independent, unbiased recommendations in newsletters when they stand to profit from convincing others to buy or sell certain stocks. They may spread false information to promote worthless stocks.

        The fact that these so-called “newsletters” may be advertised on legitimate websites, including on the online financial pages of news organizations, does not mean that they are not fraudulent. To learn more, read our tips for checking out newsletters.

        Online bulletin boards and chat rooms

        Online bulletin boards, chat rooms and social media sites are a way for investors to share information. While some messages may be true, many turn out to be bogus – or even scams. Fraudsters may use online discussions to pump up a company or pretend to reveal “inside” information about upcoming announcements, new products, or lucrative contracts.

        You never know for certain who you’re dealing with, or whether they’re credible, because many sites allow users to hide their identity behind multiple aliases. People claiming to be unbiased observers may actually be insiders, large shareholders, or paid promoters. One person can easily create the illusion of widespread interest in a small, thinly traded stock by posting numerous messages under various aliases.

        Other online offerings may not be fraudulent per se, but may nonetheless fail to comply with the applicable registration provisions of the federal securities laws. While the federal securities laws require the registration of solicitations or “offerings,” some offerings are exempt. Always determine if a securities offering is registered with the SEC or a state, or is otherwise exempt from registration, before investing.

        Spam

        “Spam” – junk e-mail – often is used to promote bogus investment schemes or to spread false information about a company. With a bulk e-mail program, spammers can send personalized messages to millions of people at once for much less than the cost of cold calling or traditional mail. Many scams, including advance fee frauds, use spam to reach potential victims.

        Many of the frauds that show up on social media are not unique to the Internet. These frauds range from “pump and dump” schemes to promises of “guaranteed returns,” from “High Yield Investment Programs” to affinity fraud. To learn more about these frauds, see Types of Fraud.

        Much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U.S. regulatory requirements and may be engaging in illegal activity.  Investors should be aware of fraudulent promotion schemes involving binary options and binary options trading platforms.

        What is a Binary Option?

        A binary option is a type of options contract in which the payout depends entirely on the outcome of a yes/no proposition and typically relates to whether the price of a particular asset will rise above or fall below a specified amount.  Once the option is acquired, there is no further decision for the holder to make regarding the exercise of the binary option because binary options exercise automatically.  Unlike other types of options, a binary option does not give the holder the right to buy or sell the specified asset.  When the binary option expires, the option holder receives either a pre-determined amount of cash or nothing at all.

        Investor Complaints Relating To Fraudulent Binary Options Trading Platforms

        The SEC has received numerous complaints of fraud associated with websites that offer an opportunity to buy or trade binary options through Internet-based trading platforms.  The complaints fall into at least three categories:

        1. Refusal to credit customer accounts or reimburse funds to customers

        These complaints typically involve customers who have deposited money into their binary options trading account and who are then encouraged by “brokers” over the telephone to deposit additional funds into the customer account.  When customers later attempt to withdraw their original deposit or the return they have been promised, the trading platforms allegedly cancel customers’ withdrawal requests, refuse to credit their accounts, or ignore their telephone calls and emails.

        1. Identity theft

        These complaints allege that certain Internet-based binary options trading platforms may be collecting customer information (including copies of customers’ credit cards, passports, and driver’s licenses) for unspecified uses.  Do not provide personal data.

        1. Manipulation of software to generate losing trades

        These complaints allege that the Internet-based binary options trading platforms manipulate the trading software to distort binary options prices and payouts.  For example, when a customer’s trade is “winning,” the countdown to expiration is extended arbitrarily until the trade becomes a loss.

        Beware of Overstated Investment Returns for Binary Options

        Additionally, some binary options Internet-based trading platforms may overstate the average return on investment by advertising a higher average return on investment than a customer should expect, given the payout structure.

        For example, a customer may be asked to pay $50 for a binary option contract that promises a 50% return if the stock price of XYZ company is above $5 per share when the option expires.  Assuming a 50/50 chance of winning, the payout structure has been designed in such a way that the expected return on investment is actually negative, resulting in a net loss to the customer.  This is because the consequence if the option expires out of the money (approximately a 100% loss) significantly outweighs the payout if the option expires in the money (approximately a 50% gain).  In this example, an investor could expect — on average — to lose money.

        Always Check the Background of a Firm or Financial Professional

        Before investing, check out the background, including registration or license status, of any firm or financial professional you are considering dealing with through the SEC’s Investment Adviser Public Disclosure (IAPD) database, available on Investor.gov, and the National Futures Association Background Affiliation Status Information Center’s BASIC Search.  If you cannot verify that they are registered, don’t trade with them, don’t give them any money, and don’t share your personal information with them.

        Additional Information

        Do not miss out on this exclusive opportunity sign

        Investor Alert: Don’t Invite Investment Scams to Find You

        Investor Alert: Binary Options Websites may be Used for Fraudulent Schemes

        Investor Alert: Beware of Government Impersonators Targeting Fraud Victims

        Investor Alert: Binary Options and Fraud

         


        The Office of Investor Education and Advocacy has provided this information as a service to investors.  It is neither a legal interpretation nor a statement of SEC policy.  If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.

        On 3 January 2018, binary options became a regulated investment product, meaning that all firms trading in binary options need to be authorised by us.

        Below is a list of firms without authorisation that we understand are offering binary options trading to UK consumers. This list is based upon information that we have received from consumers, partner agencies and from monitoring the binary options market. Many of these firms claim to be based in the UK but we believe that most of the addresses they provide are false and that the firms are actually based overseas. We are examining each of these firms to determine whether any are genuinely operating from within the UK.

        Many of the firms in the list will use a trading name but will also claim to be operated or owned by a separate company which may be based overseas. In the list below, where relevant, we have included both the trading name, the ‘Firm Name’, and the operator/owner company, the ‘Owner/Operator’.

        Find out how binary options work and what our concerns are.

        The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to warn investors that fraudsters may conduct investment schemes through purported online binary options trading platforms.  While some binary options are listed on registered exchanges or traded on a designated contract market that are subject to oversight by U.S. regulators such as the SEC or the Commodity Futures Trading Commission, respectively, this is only a portion of the binary options market.  Much of the binary options market operates through Internet-based trading platforms that are not necessarily complying with applicable U.S. regulatory requirements.  For a comprehensive overview of binary options, including information about investing in binary options that are subject to U.S. regulatory oversight, read our Investor Alert: Binary Options and Fraud.

        What is a Binary Option?

        A binary option is a type of options contract in which the payout will depend entirely on the outcome of a yes/no (binary) proposition.  When the binary option expires, the option holder will receive either a pre-determined amount of cash or nothing at all.  Given the all-or-nothing payout structure, binary options are sometimes referred to as “all-or-nothing options” or “fixed-return options.” 

        Typically, a representative of a binary options website will ask a customer to deposit money into an account where the customer can purchase binary options contracts.  A customer may be asked to, for example, pay $50 for a binary option contract that promises a 50% return if the stock price of XYZ company is above $5 per share when the binary option expires. 

        Be Wary of Sales Pitches

        Representatives of binary options websites may use fictitious names and tout fake credentials, qualifications, and experience.  They may misrepresent where they are calling from (for example, pretending that they are in the U.S.).  Supposedly “unbiased” sources reviewing or ranking binary options websites may have been paid to promote or criticize particular websites.  Fraudsters may “warn” you that the binary options website you are using is a scam in order to gain your trust and get you to deposit even more money in another website that they also run. 

        If you are considering investing money with a binary options website, look out for these red flags:

        Violations of the Federal Securities Laws Involving Binary Options

        In addition to perpetrating fraudulent investment schemes, the operators of binary options websites may be violating the federal securities laws through other illegal conduct, including:

        Furthermore, if any of the products offered by binary options trading websites are security-based swaps, additional requirements will apply.

        SEC Enforcement Actions Involving Binary Options.  The SEC’s Division of Enforcement has brought charges against companies for failure to register the securities and failure to register with the SEC as a broker before offering and selling binary options to U.S. investors, as required.  In SEC v. Banc de Binary, the binary options seller allegedly solicited U.S. investors through methods including YouTube videos, spam emails, and advertising on the Internet, and also communicated with U.S. investors by phone, email, and instant messenger.  In In the Matter of EZTD Inc., another binary options seller allegedly misrepresented the risk of investing in binary options sold on its trading platforms, including by stating on its websites that investing in the binary options that it offered and sold is profitable when, in fact, less than 3% of its customers in the U.S. earned a profit trading binary options sold by the respondent.  

        If you purchase binary options from a firm that is not registered with or subject to the oversight of the SEC, you may not have the full benefit of the safeguards of the federal securities laws that have been put in place to protect investors.  Some safeguards and remedies are available only to purchasers of securities in registered offerings.  In addition, individual investors may not be able to pursue, on their own, some remedies that are available for unregistered offerings.

        Before investing, check out the background, including registration or license status, of any firm or financial professional you are considering dealing with through the SEC’s Investment Adviser Public Disclosure (IAPD) database, available on Investor.gov, and the National Futures Association Background Affiliation Status Information Center’s BASIC Search.  If you cannot verify that they are registered, don’t trade with them, don’t give them any money, and don’t share your personal information with them.

        Additional Information

        Beware of Off-Exchange Binary Options Trades

        Binary Options: These All-Or-Nothing Options Are All-Too-Often Fraudulent

        Canadian Securities Administrators Investor Alert: Unregistered binary option platforms target Canadians

        Report possible securities fraud to the SEC.  Ask a question or report a problem concerning your investments, your investment account or a financial professional.

        Visit Investor.gov, the SEC’s website for individual investors.

        Receive Investor Alerts and Bulletins from the Office of Investor Education and Advocacy (OIEA) by email or RSS feed.  Follow OIEA on Twitter @SEC_Investor_Ed.  Like OIEA on Facebook at facebook.com/secinvestoreducation.

        The Office of Investor Education and Advocacy has provided this information as a service to investors.  It is neither a legal interpretation nor a statement of SEC policy.  If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.