A few years ago they were all over the place. Binary options scams were hot, as regulators were confronted to a new type of financial fraud. It took time for them to adapt and take action. Legal actions then kicked in, binary options were banned in Israel, where a lot of scammy brokers were based.
The cleanup took then a turn towards extreme views, regulators went as far as claiming that the product itself is a scam, irrespective of the transparency and the honesty of the platforms. Now scammers found a new playground: cryptocurrencies.
2 million pounds lost only during the summer in the UK
On August 10, Action Fraud, a division of the UK police, has announced that more than 2 million pounds have been lost by individuals during the 2018 summer. The average loss per person is a bit above 10.000 pounds. Scammers are using the same recipes that have been used by rogue binary options brokers. They target individuals on the Internet and social media, making outrageous gain promises in trading or mining. They lure people to start with a small deposit. Then, through well-oiled techniques close to manipulation, they convince people to deposit more in order to maximize their gains. Then they vanish, or cheat to steal investors money.
It is most probably the same individuals that are responsible for those scams. The technique is absolutely the same, only the vehicle changes. Sites appears and disappears, leaving people desperate with huge losses. The UK police, in its report, has the courtesy of not blaming cryptos for those criminal behaviors. Hopefully such common sense will also prevail for binary options, when fair actors such as Spectre will prove that this is a legitimate product… if executed as it should.