How Do Binary Options Scams Work

Scamwatch is warning investors to beware of binary trading scams that lure you in with the opportunity to make coin through asset price movement. So far this year Australians have lost $3 million to these scammers.

Binary options involve predicting the movements of commodity, asset or index prices over a short time. Although they may exist a legitimate financial product with many licenced firms trading in them, binary options are speculative, high risk products that are almost impossible to predict, fifty-fifty for professionals. At that place are groups of scammers who employ binary options to steal your coin.

These scammers use high-pressure sales tactics to try and convince you to invest in a trading business relationship, making claims that the system is simple and high profits are guaranteed. If you agree, they direct you lot to a website with a login, account details and the trading platform. They put your money into the account and demonstrate a number of successful trades to encourage you to invest greater sums of money.

Once invested in the scheme, victims accept reported that their money begins to disappear chop-chop. When they try to withdraw from the scheme, they notice it impossible to get their money out of the business relationship. The scammer does everything they tin can to keep the victim in the program only inevitably they finish taking the victim’s calls and, after a short period of time, it is mutual for the firms to disappear.

If you receive a phone call or run across an online ad offering binary trading be very cautious. Do your research on the offer and the company. Don’t hold to anything straight away.

How these scams work

• Y’all receive a call out of the blue offering a secure investment with fast, high returns. You might also come up across these scammers through social media or online ads.
• The scammers have professional looking websites to help them appear legitimate, normally with a login process, personalised account details and a trading platform.
• The victim invests money into the account and either the victim or an amanuensis attempts to guess whether a particular commodity price volition get upwards or down over short intervals.
• If you guess correctly, the business relationship is credited with a small return. If you guess incorrectly, yous lose the entire amount placed. The odds are stacked against you so information technology is very probable that you will lose over time.
• When y’all attempt to withdraw money, you discover it almost impossible to do and then and frequently lose the entire investment.
• Binary option scammers volition also ask for personal information, claiming they need it to transfer coin or that it is required for anti-money laundering purposes. Providing this information tin leave you open to identity theft.

Protect yourself

• Consider any approach for investment offers carefully, especially if they are over the phone. Be suspicious of investment opportunities that promise a high return with little or no risk.
• Check ASIC’s listing of companies you should not deal with. If the visitor that called you is on the list – don’t deal with them. However, if they practise not appear on the list it doesn’t mean they are legitimate.
• Check ASIC’s professional registers to brand sure the provider has an Australian Financial Services (AFS) License or is authorised by an AFS Licensee.
• Don’t permit anyone pressure level you into making decisions about coin or investments – go independent legal or financial advice.
• Advisedly consider who y’all are giving personal data to, such as details from your passport or bank account, equally this could be afterward used for identity theft.
• If y’all are looking to invest in binary options your best bet is to only say no and look for a safer, less risky investment.

Written report

You lot can report scams to the ACCC via the Scamwatch Study a scam page.

More than information

The Australian Securities and Investments Commission’due south MoneySmart website has information on binary options.