Fraudsters claim ‘Binary Options are being used for investment scams’ (July 2016)
Binary Options are called ‘Binary’ because there can be only two outcomes – win or lose. The consumer bets on whether the price of a commodity such as gold, oil or stocks etc will rise or fall below a certain amount. If you opt correctly, you will supposedly win the bet. If not, you lose your money. Consumers aren’t buying or selling the commodity, just predicting if the price of it will rise or fall.
Fraud occurs when Binary Trading Platforms:
- Offer a higher than average return on an investment
- Refuse to credit customer accounts
- Break all contact with the customer
- Manipulate software to distort prices and payouts
Consumers scammed are left unable to cash out their winnings and any funds deposited.
One convicted fraudster interviewed by the NFIB Proactive Intelligence Team said: “Binary Options are the new investment scam. Platforms are set up all the time to appear legitimate, but are actually fake. Companies operating these fake Binary Trading Platforms make 100% profit - a percentage of which goes to the brokers and the remainder to the rest of the company. Victims who invested never see any returns and when the customers attempt to withdraw funds it’s made very difficult for them to do so and at times the company ignores them completely ceasing all contact”.
- If you’re considering any type of investment, always remember: if it seems too good to be true, then it probably is
- If you get a call out of the blue from someone offering investment opportunities, be wary; if in doubt don’t be polite, just hang up
- If in doubt, where you think a firm offering binary options may not be trustworthy or legitimate, do not transfer money to them or provide them with your bank details
Learn more about this scam and what to look out for here.
If you believe you are a victim of fraud please contact us immediately. If you think you may have been a victim of the above scam please also report it to Action Fraud by calling 0300 123 20 40 or by their using the online reporting tool.
Important customer reminder (June 2016)
Fraudsters are continuing to target customers through text, emails and telephone calls claiming to be from trusted organisations, like your bank or the police. These fraudulent actions are intended to obtain your confidential account and security information..
Remember, the bank, police or other trusted organisations will never contact you to ask:
- For your financial information or your full security details
- For you to provide your PIN code or card reader codes
- For you to move your money to a new or 'safe' account
If you are given any of these instructions, it is a fraudulent approach. If you believe you are a victim of fraud please contact us immediately.
Financial Fraud Action UK warns consumers of an increase in text scams (January 2016)
Beware of scam text messages that appear to be from the bank and claims there is fraudulent activity on your account or asks you to verify your bank account and security details in full.
To make the text message appear authentic fraudsters use specialist software, which means the message will show the name of a bank and may even be included in an existing text message thread on your phone.
Always be suspicious of any text message that asks you to click on a link or call a telephone number to verify account activity or to divulge personal details or your security information in full.
If you are in any doubt, please contact us immediately.
Read more on this scam alert here.