de | cn | ru

Market News

London police raids binary options brokers, as client losses mount

Oct 20 2017
By
Jonathan Smith

 The City of London Police, along with representatives of the Financial Conduct Authority and the HM Revenue & Customs (HMRC) have “visited” the offices of 20 binary options brokerages in the City this Tuesday, the police said.


The inspection was prompted by data of the Action Fraud cybercrime unit that in the first six months of 2017 Brits have reported losses of over GBP 18 million to various binary options fraud. On average the loss of a single person amounted to GBP 22 811. The total losses to various online scams since 2012 have amounted to GBP 59 million. Most likely the losses are much greater, as the statistics is based just on the reported cases.


The action of the government agencies mostly focused on compliance and document gathering, but, according to the police, some interesting things have been found. For example, one team discovered a business that had paid over three month’s rent upfront to the serviced office provider and then had disappeared. The police is now investigating whether this was a boiler room scam.


“This multi-agency operation, allowed us to speak with multiple businesses and gather significant intelligence around various investments currently being traded in the City”, said City of London Police’s Chief Superintendent Glenn Maleary, Head of the Economic Crime Directorate. “With our partners we want to ensure the City is a hostile environment for fraudsters to operate in and we will continue to do everything we can to ensure that this is the case.”


In UK the binary options brokerages are under the control of the Gambling Commission and not of the FCA, which is in charge of the financial services providers and markets.


In the past several years the binary options industry has been under increased scrutiny and is getting a lot of bad press. Some countries, like the Netherlands and Israel and more recently Canada, have banned the offering of such products to the residents of those countries, while in the US they are tightly regulated and can only be traded on exchanges.


Meanwhile, some major binary options brokers like Banc de Binary shuttered the business, while others, like 24Options have abandoned binary options and started offering other instruments. Earlier this year, Apple has banned all binary options trading apps from the iTunes app store.

 

  

TAGS: binary options  fraud  london  police  raid 
Broker Country Regulation Platform Min Deposit Review
US CFTC, NFA MT4, Web,
in-house
$50 Review Website
US NFA, CFTC MT4 $250 Review Website
Cyprus, UK, Mauritius CySec, FCA, FSC MT4, MT5, Web $10 Review Website
Australia ASIC MT4, MT5,
IRESSTrader
$100 Review Website
Cyprus, Australia CySec, ASIC MT4, MT5 $5 Review Website
UK, Australia, South Africa FCA, ASIC, FSCA 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, UK, South Africa, UAE CySec, FCA, FSCA, DFSA MT4, MT5, Web $5 Review Website
Cyprus, UK CySEC, FCA MT4, MT5 $1 Review Website
UK FCA MT4, Web, MT4
for Mac
$100 Review Website
Australia, UK ASIC, FCA MT4, MT5,
cTrader
$200 Review Website

More Forex Market News

$3,5 bln Bitcoin Ponzi scheme Plus Token pressures the markets

Aug 15 2019 17:42:11

The fraudsters behind the China based Ponzi scheme Plus Token are dumping bitcoins worth over 3.5 billion USD on exchanges around the globe, and that is creating a selling pressure on the markets, venture capitalist Dovey Wan warns. Read more

Spain’s CNMV blacklists EurTrades, Trade100, and Key Markets

Aug 14 2019 13:54:57

  The Comision Nacional del Mercado de Valores (CNMV) updated its warning list on Wednesday with several offshore brokers - EurTrades, Trade100, and Key Markets. These entities are not authorized to provide investment services or investment advice in Spain, the CNMV said. Read more

Former binary options broker iTrader to be indicted in Israel

Aug 13 2019 14:07:37

  Israel’s state prosecutor announced that it intends to indict the company behind former binary options broker iTrader, its owner and senior officials, on charges of aggravated fraud and providing investment advice without a license. The company Gal Media Trade Ltd. Read more

CySEC warns of fake recovery agents claiming to be its employees

Aug 12 2019 20:32:52

  The Cyprus Securities and Exchange Commission warned against fraudsters impersonating its officers who are running a recovery room scam. Read more

Aussie crypto scam worth A$2.7 million busted, five arrested

Aug 08 2019 15:46:37

  A criminal group in Gold Coast, Australia were arrested for allegedly scamming over 100 Australians with A$2.7 million in cryptocurrency investment. Read more

EtherDelta investigated for exit scam

Aug 07 2019 12:01:50

  Chinese police are reportedly taking legal action against cryptocurrency exchange EtherDelta in connection with an alleged exit scam.    The news was actually reported in a series of tweets by the ex-owner and founding partner of the exchange Dovey Wan. Read more

BaFin warns against 4xincome, orders it to cease operations

Aug 06 2019 15:44:28

  The German Federal Financial Supervisory Authority (BaFin) blacklisted unregulated forex broker 4xincome and ordered it to cease operation in the country. The regulator said that this broker offers German clients trading in forex and various CFDs thorough its website 4xincome. Read more

Thailand’s AML laws will also apply to crypto exchanges

Aug 05 2019 16:57:59

  The Secretary-General of the Thai Anti-Money Laundering Office (AMLO) stated that the existing anti-money laundering (AML) rules in Thailand will be amended as to also cover cryptocurrencies and prevent their use for illicit activities, as reported by local news media BangkokPost. Read more

ASIC warns against Alpha Financial Group, MGM Markets, and Brokerz.com

Aug 02 2019 16:06:03

  The Australian Securities and Investment Commission (ASIC) has updated its warning list today with Alpha Financial Group, MGM Markets, Brokerz.com, and several other unregulated brokers. Read more

US court orders forex scammer from Texas to pay almost $3 million

Aug 01 2019 12:27:56

  US Federal Court ordered defendant Kelvin O. Ramirez to pay nearly $3 million after he was found guilty of fraudulently soliciting and misappropriating funds from clients in a forex trading scheme, as announced by the US Commodity Futures Trading Commission (CFTC) in mid-July. Read more

de | cn | ru