It seems that the police of some countries has also started taking binary option scams seriously. Shortly after the City of London Police warned fraudsters are using Sir Richard Branson’s name in a binaries scam, the Royal Canadian Mounted Police of the Alberta province has also warned of binary options scams.
In a publication on its website, the Alberta RCMP said there were a total of 8317 cases of scam reported between January and October last year. Among those are also investment scams, including binary options.
The police quotes data of the Alberta Securities Commission, which shows that Albertans lose on average of over CAD 20 000 to such fraudulent schemes. Further, the RCMP explains what a binary option is: all or nothing “bets” that are invested based on how an asset will perform within a predetermined timeframe. Usually, this type of scam is offered online on websites that are designed to look legitimate, promising high rates of return and low risk.
“Albertans should know that companies offering securities to Canadians must be registered in the province they do business. Currently, there are no registered binary options dealers in Alberta”, the Alberta RCMP said and urged the public to be cautious and check the legitimacy of the company offering the service, before investing.
Despite the warnings and other efforts of financial regulators and police, the binary options industry continues to work undisturbed and fleece people out of their money. The most unscrupulous, despite regulated, are the Israeli binary options companies who became notorious with their merciless tactics. Currently Israel’s parliament is deliberating the banning of marketing of binary options to foreign clients, but this would only mean that the companies should move their call centers somewhere else.
Meanwhile, last week it became clear that the Cyprus Securities and Exchange Commission, where many of the binary options brokers are regulated, is considering banning those products.
This would hardly change much, as the vast majority of binary options fraudsters are not regulated at all and can do as they please.