If you’re reading this, the chances are high that you have either fallen prey to a binary options trading scam or are evaluating your risks before investing in a binary options trade. Either way, you’re in the right place as this article will guide you through common types of binary options trading scams and recovery methods.
Once you know the type of scam you’re a victim of, it’s pretty easy to determine the next course of action. Depending on the severity of the fraud, you can either hire the services of a professional recovery service provider or tackle the issue on your own. Here’s a primer article to arm you with the knowledge of common types of binary options trading scams and ways to recover your lost money.
Know Your Binary Options Trading Scams
It’s imperative to know the most common types of binary options trading scams, whether you are a victim or investing for the first time. If you’re a victim, this will help you know the severity of the fraud and what steps to take next.
On the other hand, if you’re about to make your first trade, this knowledge will help you look out for red flags. Here are the most common types of binary options trading scams to know about.
Manipulative Binary Options Trading Platforms
This is one of the most common types of binary options trading scams. Experienced scammers can design the website and user interface of the platform to manipulate data shown to the end-user.
A manipulative platform may show different values, payouts, and expiration times to the user instead of the actual trading values. This way, the user is convinced that they lost money when they might have made considerable returns on their invested capital. More often than not, investors or traders are blissfully unaware that they are losing money in such a scam.
The best way to avoid falling prey to this scam is to do due diligence and invest in trusted binary options trading platforms. The best start to this is to look up the most popular and trustworthy binary options traders online.
Binary Options Trading Platforms Designed to Steal Data
In some cases, shady platforms are after your personal data instead of making money on your investment. This is an extension of the manipulative binary options trading platforms.
This is more dangerous since the scammer is not after the money you make on the limited investment but your financial accounts. We need not tell you how risky that is. If you fall prey to such a scam, the miscreant might drain you of all your savings and more.
Usually, such scammers target confidential data like credit card information, personal ID details, and more for committing financial fraud. Usually, it’s a little too late before the victim realizes the extent of the fraud in such cases.
The best practice to avoid such scams is to use popular platforms used and trusted by many. You can also check any platform’s registration status and background using the Financial Industry Regulatory Agency’s BrokerCheck website.
Overcharging by Binary Options Trading Platforms
There are cases where individuals have lost their hard-earned money due to unfair commissions and overcharging by binary options trading platforms. Therefore, it’s natural for a trader to demand some percentage of the profit made and the trading fee.
While this is a reasonable practice, some platforms might scam their clients with exorbitant commissions and claim a higher profit percentage. Usually, fishy trading platforms deduct the commission and fee automatically from your account without your knowledge.
It can be difficult to dispute such a scam since you’ll still be able to withdraw your credit, just not the right amount. It’s thus crucial to select trading platforms, which disclose the contract with all details such as trading fee and commission involved.
Embezzlement by Binary Options Trading Platforms
Embezzlement is the classic binary options trading scam with probably the highest number of victims. The fraud involves the trader asking its clients to make additional deposits before withdrawing their money and profit.
Next thing you know, the platform refuses to release the additional deposit and the assured trading earnings on the same. They start by refusing to credit clients’ accounts and then cutting off all communications.
In this case, the only countermeasure is going legal or hiring a professional recovery company, which brings us to the best methods to recover lost money in binary options trading scam.
Binary Options Trading Scam Recovery Is Not a Rocket Science
To err is human, and if you have fallen prey to one of the scams mentioned above, don’t lose hope yet. Contrary to popular belief, binary options trading scam recovery is not rocket science. Here are two methods to get back the money lost successfully.
Make Use of Credit Card Chargeback Facility
The first step to take when you cannot withdraw your investment is to raise a chargeback on the credit card. This will kick off a reverse transaction for the amount paid using the credit card.
The chargeback process usually involves filing the request and submitting it to the credit card provider, request review by the card provider, settlement, and decision about who should pay for the transaction.
Most small-time scammers will instantly agree to reimburse the amount to avoid getting into legal tussles, and the whole process will be pretty short. However, seasoned scammers might refuse to settle and thus stretch the chargeback process.
In this case, it would be wise to bring on board a professional recovery service. These companies have experts specializing in binary options trading scam recovery and will make the ordeal less stressful for the victim.
Get Professional Help From Experts
As mentioned before, if the trader refuses to settle or when the credit chargeback doesn’t work, it’s best to hire a binary options recovery service provider. Such companies bring their years of expertise in handling such scams.
However, once again, ensure that you hire a legitimate company to assist you in trading scam recovery. Look at their history and records of recovery before entrusting them with your case. This is because you’ll be required to share your financial account information with the recovery company, and it would be wise to opt for a credible firm with a good reputation.
Verdict: Do Your Due Diligence
The gist of it is that whether you are a seasoned investor or just starting, doing your due diligence will go a long way to keep you safe from scams. Research your options, read the fine print and think ahead to prepare for potential fraud.
It will also come in handy to have a trusted recovery company on the radar if things go south. So, now that you’re aware of scams to look out for and what to do when things go sideways, let’s make some money!
