The COVId-19 pandemic has witnessed economies slowing down almost everywhere, thanks to the lockdown and resulting shut down of businesses. The resulting losses and revenue reduction have forced many employers to let go of employees, resort to pay cuts, or opt for remote working culture to save on operating costs.
New COVID-19 Risk: Binary Options Scammers Now Targeting Pandemic Affected Workers
As if the brunt was not enough, a new COVID-19 scare is rearing its head. Binary options trading scammers are targeting those who have been let go or are working remotely.
Such individuals are already finding it hard to make ends meet, and when they lose their savings or hard-earned money, the going gets tough.
Whenever someone approaches you online, offering you returns that sound too good to be true, always be wary. Here are some things you should know to prevent falling prey to such scams.
Why Are Unemployed Or Remote Workers Being Targeted By Scammers?
Scammers usually do not differentiate when it comes to deciding whom to swindle. They would ideally try their luck on anyone with money.
However, the whole COVID-19 situation has opened a whole new avenue for these scammers.
People who have lost their livelihood or are forced to work remotely are under duress to make ends meet.
When you dangle a quick way to make money in front of such individuals, they are likely to take the bait.
This impulsive behavior without any caution stems from their insecurity and willingness to take shortcuts to put food on the table in these times of distress.
Therefore, it comes as no wonder that the US government has issued an advisory for those sidelined by the COVID-19 pandemic.
In case you have already lost your hard-earned money to one such scam, here is a piece of good news for you.
There are specialized recovery service agencies that will help you get your money back from binary options scams from scammers.
These companies have experts with years of experience on board and are capable of getting your money back.
When you seek the services of recovery agencies, they will do a preliminary check of the case history and all evidence to assess if your case has any chance of getting the money back.
Keep all evidence, transaction paperwork, and communication history with the scammer handy for this.
Once the agency is sure that the case has a chance, they will further collect more information and documentation through their sources to pursue the case.
Armed with all evidence in place, the agency then confronts the scammer and gets all or part of your lost money back.
What Are The Red Flags Raised By Binary Options Scammers?
The online space and social media platforms these days are full of influencers who claim to have made a quick fortune by investing in a specific trade or binary option with a trader who is most likely unregistered.
One such example is Gurvin Singh, an Instagram trader who flaunted his lavish lifestyle, luxury cars and claimed an earning of £110,000 a month.
He then went on to dupe over 1,000 investors into losing around £4,000,000 in a trading scheme.
Several red flags will help you keep an eye out for such scammers and safeguard yourself against them.
The best way to spot a “broker” is when they only communicate with you online and use either social media or instant messaging platforms.
They would never disclose their contact details or legal address.
Secondly, such brokers will always ask for transactions through digital options or cryptocurrency.
Any broker requesting a transfer in crypto should raise a huge red flag in your mind since cryptocurrencies are unregulated and cannot be traced to the recipient as well.
Lastly, the broker you are dealing with should be registered with CFTC – an independent US federal agency established by the Commodity Futures Trading Commission Act of 1974.
You can check their registration by visiting the official CFTC check website.
How To Stay Safe From Binary Options Scams?
Thanks to the inherently risky nature of binary options trading, the market is ripe for scammers.
However, that should not dissuade you from investing in binary options. What you could do is practice some precautionary measures to avoid getting scammed.
Check The Background of the Broker
Before signing up on any binary options broker platform, the most fundamental step is to verify their records and credentials.
Do not be swayed by the promises of high and quick returns, and do your due diligence.
Apart from the CFTC check mentioned before, you can also use the SEC’s Investment Adviser Public Disclosure website to check the broker or firm’s background.
Read the Fine Print
The next step is to make sure you always read the fine print. One of the ways in which scammers make vast sums of money while their clients lose money is because of dubious payout terms.
Scammers set the payout terms so that most investors would lose their investments in just a few months.
Therefore, before signing up for a broker, do due diligence and look for lock-in periods, bonuses on locking withdrawals, and more.
Steer Clear of Automated Trading
Moreover, beware of any automated trading. While it may seem like a good idea to let robots or a “team of professionals” take care of your trading efforts for you, it is a massive red flag.
This is because there is a conflict of interest here since you are trading to make money, and the broker makes money when you lose money.
Therefore, if you are approached by someone pushing a little too much about how their automated robot trading system or the team is the best in the biz, give them a wide berth.
This is because the chances are high that they plan to cause you loss for their good.
Avoid Foreign Brokers
Lastly, avoid dealing with any broker or trading platform that’s not based in your country of residence. If a broker is based outside of the country of your residence, it becomes difficult for the recovery services to pursue the case since the local laws do not apply to them.
Brokers based in the same country are required to comply with laws and regulations in your country, making it easier for you to run a background check.
Final Thoughts
The key takeaway here is that you should, by all means, trade in binary options if you want to trade in binary options. However, ensure that you work with registered and credible brokers.
To ensure this, you can check out the credible blacklists posted online on reputed forums and read user opinions before committing to a broker. This way, you will be able to safeguard your money and make some healthy returns on your investment.
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