FBI: Losses from binary options fraud run into the millions

In a publication entitled “Binary Options Fraud, A Word of Warning to the Investing Public” the FBI notes that the binary options fraud is a growing problem and says that between 2011 and 2016 the number of complaints and sums lost to this type of scam have grown exponentially. “In 2011, our Internet Crime Complaint Center (IC3) received four complaints—with reported losses of just more than $20,000—from binary options fraud victims. Fast forward five years, and the IC3 received hundreds of complaints with millions of dollars in reported losses during 2016”, FBI said, adding that those figures reflect only the filed complaints.

 

Ouchy!

 

I wonder how many fraud complaints have been filed by 26 year old Snapchat investors

 

These firms need to be shut down

http://www.timesofisrael.com/when-b...israel-through-its-inaction-became-complicit/

 

Yeah Binaries should be regulated. I trade them every day for profit, but not an easy nut to crack.

 

The Financial Industry Regulatory Authority (FINRA), a US self-regulatory organization (SRO), joined a long list of authorities that warn about the high risks of binary options. The SRO issued on Thursday a notice, in which it signaled how risky trading in such instruments is and alerted of scams taking advantage of investors who already lost to binary options.

The regulator emphasized on two particular schemes for which investors should be on guard – recovery scams and IRS impersonation scams.

 

The UK's FCA is likely to regulate them this year, at the moment they come under gambling regulations

 

The FCA doesnt want to regulate them, it would rather just ban them outright.
It knows the Intra day products, 5, 20 minutes and hourlies are pure gambling products and have no purpose whatsoever except parting money from suckers.
It will depend on how much pressure they come under from the spread bet companies and other vested interests.

 

Well I guess they could ban, regulated companies from using them, IG has withdrawn sprints for new clients while the FCA make their decisions. As one of the few people making money from them I hope they just regulate them.

 

Also I don't agree with your assertions about short time frames and binaries being purely gambling products, I have an algorithmic edge in 1,2,5,20 min binaries and 5 min Spot Forex, 99% of the time the market is truly random, but with enough number crunching it is possible to find small pockets of edge, I tested both of my systems with in excess of 10,000 setups and the Binary system has been running live and very profitable since December 1 2015