Has anything changed in the binary options industry?
The FBI has gotten involved, Interpol is looking into binary options fraud. CySEC, the main regulator of the industry has suspended many licenses, regulators have given hefty fines to many brokers and firms, Israel (where many brokers are situated) has began to take action against the industry, many countries have banned binary options and regulators from around the world have been “woke” for a while now.
Even Banc de Binary, the firm that actually had multiple licenses from many regulative bodies and countries, has closed its doors due to bad reputation and a tsunami of consumer complaints, fines from the US regulators and more. So with all of this happening, has anything really changed this year in the binary options industry?
Yes and No
The fact is that there are still dozens of unregulated brokers going un-checked, doing whatever they want with client money, using boiler room tactics and “easy money” advertising materials to lure in clients that they “pump and dump”.
There are only a hand-full of regulated and trusted brokers to trade with, depending on where you live. If you live in Canada there will be NOT EVEN 1 regulated broker from your country. The situation is the same in dozens of more countries where there are no regulated firms at all.
This leaves the whole entire consumer pool as”fresh meat’ for the unregulated fraudsters who are looking for new “investors” – and they don’t seem to be afraid of any recent events happening, even after the FBI and Interpol have gotten involved, they don’t seem to care.
The Transaction & Credit Card Problem
The only true change that we have witnessed this year is the fact that it is becoming harder and harder for unregulated brokerages to take hold of client money, most banks and credit card companies will not allow any sort of transaction for binary options and have FLAGGED anything that has to do with binary options, they will no longer handle these types of transactions for any of their clients.
This has made it a lot harder for unregulated firms, that are dealing in binary options, to make money. But they have (of course) quickly found ways around this problem. Changing the name from “binary options” to any other name they want. They can call it “100 options” or even try to make transactions through dummy accounts that have nothing to do with trading. For example we have heard a rumor from one source that unregulated binary options brokers have even gone so far as to make credit card transactions, while calling the transaction “clothing” or “toys” just to stay under the radar.
As long as they can take your money, they don’t really care what your credit card bill will say the transaction was for.
The only true win for the consumers as of late has been that large credit card companies such as Mastercard and Visa have gotten smarter and no longer deal with binary options firms unless the firm is reputable, regulated and %100 not a scam.
So some change has happened but at the same time unregulated and fraudulent brokers are getting bolder and are fearless of any real repercussions.
There is still a void in the industry, because only a small number of reputable binary options brokers exist and that leaves a lot of room for cyber criminals to continue and take advantage of the industry and of consumers.