de | cn | ru

Market News

FBI: Losses from binary options fraud run into the millions

 It seems that the regulators and law enforcement agencies across the world are finally becoming aware of the risks of trading in binary options. Within just a day, two more entities – the Monetary Authority of Singapore (MAS) and the US FBI have issued warnings against dealing with unregulated binary options platforms and brokers. 

 
In a publication entitled “Binary Options Fraud, A Word of Warning to the Investing Public” the FBI notes that the binary options fraud is a growing problem and says that between 2011 and 2016 the number of complaints and sums lost to this type of scam have grown exponentially. “In 2011, our Internet Crime Complaint Center (IC3) received four complaints—with reported losses of just more than $20,000—from binary options fraud victims. Fast forward five years, and the IC3 received hundreds of complaints with millions of dollars in reported losses during 2016”, FBI said, adding that those figures reflect only the filed complaints. The true extent of the fraud, which is international in its nature, is not really known, but some European countries have reported that binary options fraud complaints now constitute 25 percent of all the fraud complaints received. 
 
In its publication FBI lists the most frequent types of fraud employed by scam binary options platforms: Refusal to credit customer accounts or reimburse funds to customers, identity theft and manipulation of trading software. The US law enforcement agency also warns that the fraudsters go to great lengths to recruit investors by advertising on social networks, trading websites, forums and through spam e-mail, cold call from boiler room operations and pressure their victims to invest.
 
Further the FBI advises investors to check whether the binary options platform they want to deal with is registered with the relevant US financial regulators: SEC, NFA and CFTC. According to US regulations, only binary options exchanges registered with those entities are allowed to offer their services in the country. Other binary options brokers, including those regulated by watchdogs, are considered illegal in the US.
 
 
TAGS: fbi  binary options  fraud  warning  us 
Forex
Broker Country Regulation Platform Min Deposit Review
Cyprus CySec, FCA MT4, MT5, Web $5 Review Website
Cyprus, Australia CySec, ASIC MT4, Web $100 Review Website
UK, Cyprus, Hong Kong FCA, CySEC, SFC MT4, Web,
PrimeTrader
$100 Review Website
UK, Cyprus FCA, CySec MT4, MT5 $5 Review Website
UK, Australia FCA, ASIC MT4, Trading
Station,
NinjaTrader
$50 Review Website
UK, Cyprus, UAE, South Africa FCA, CySEC, DFSA, FSB MT4, MT5, FxPro
Markets,
cTrader
$100 Review Website
Cyprus CySEC MT4, MT5, Web $1 Review Website
Belize IFSC MT4, MT5 $100 Review Website
Cyprus CySEC in-house mobile
app
$50 Review Website
Seychelles FinaCom MT4, Web $10 Review Website

More Forex Market News

Out with the old, in with the new: Could digital currencies replace fiat money?

Feb 21 2018 15:41:59

  In 1971, US President Richard Nixon suspended the convertibility of the dollar into gold and pitched a stone into the relatively calm waters of the global economy. Read more

CONSOB issues cease orders against several forex, binary options brokers

Feb 20 2018 09:24:27

 Italy’s financial markets and service providers regulator CONSOB announced it has issued cease orders against several forex and binary options brokers that are operating in violation of Italian law. Read more

Switzerland’s FINMA warns of forex broker ProfitTrade24

Feb 19 2018 08:26:09

 Switzerland’s financial markets and services regulator FINMA has issued a warning against the forex broker ProfitTrade24. Read more

UK’s FCA warns of unregulated forex broker XMarkets

Feb 16 2018 08:19:16

UK’s Financial Conduct Authority (FCA) has issued a warning that the forex broker XMarkets is not licensed to offer its services in the UK. “This firm is not authorised by us and is targeting people in the UK. Read more

UK’s FCA warns of forex broker Prime CFDs

Feb 13 2018 07:55:43

 UK’s financial markets and services provider regulator FCA, has issued a warning against the forex broker Prime CFDs.   According to the notice, the broker is providing services in the UK on its site - www.primecfds.com, without the proper authorization. Read more

FCA: Brits lose GBP 87 000 to binary options scams per day

Feb 02 2018 09:16:33

 Brits lose an average of GBP 87 000 a day to binary options scams, said UK’s financial services watchdog the Financial Conduct Authority (FCA) in its latest advisory. In the publication the FCA urges the public to be vigilant to the threat of online investment fraud. Read more

Facebook bans cryptocurrency, ICO, binary options ads

Jan 31 2018 08:04:08

Facebook is banning the ads of cryptocurrencies, including bitcoin, initial coin offerings (ICOs) and binary options across its network and partnering sites, said the company in a blog post. Read more

Coincheck execs don’t admit security flaws

Jan 29 2018 08:37:40

 The executives of the Japanese cryptocurrency exchange Coincheck, which became the latest victim of a security breach and theft of cryptocurrencies worth $530 million, refused to admit security flaws, reports CCN. Read more

OneCoin now owned by “poor boy” from Sofia – media

Jan 24 2018 14:01:54

The companies behind the OneCoin MLM ponzi scheme have been transferred to Kristian Manolov from one of the less affluent suburbs of Bulgaria’s capital Sofia, reports the local daily 24 Chasa. Read more

Keeping things private – New data protection and financial regulation protect investors

Jan 23 2018 14:57:45

We have all experienced a well targeted advert popping up on our social media after posting a comment on a subject. Read more

Forex
de | cn | ru