Since the introduction of the binary options product to the market, a number of firms have come and gone. The introduction of an official ban for the product in the EU doesn’t appear to be deterring scam artists.
The well-known industry which has plagued retail trading for years is now taking it to the next level. Since the ban on part of regulators and Google, the business has become difficult. Unfortunately for the legitimate part of this industry, it’s still not impossible to con people into investing into binary options.
On Thursday, the CySEC (Cyprus Securities and Exchange Commission) has issued brisk statements related to two websites. The trading names Binatex and 24Traderush have been misleadingly claiming that they are overseen by the Cypriot regulator.
The Next Leg of Misleading Advertisement
In order to resuscitate an industry which has been compressed in a massive way in recent years, scam artists have come up with new tactics. In a traditional fashion, the binary options product is being pushed as a life-changing investment opportunity.
The call centers, which are used to target victims of the binary options scams Binatex and 24Traderush, are most likely located outside of the EU. The advertisements used by the masterminds behind the revival of binary options, but are going around the restrictions by ad platforms.
While looking for the ways which the websites of the binary brokers are attracting new clients I stubbed upon two major campaigns. Reminiscent of some UK tabloids getting duped into advertising them, the scams continue.
The Young Student
Enter the life of Sarah Parker, a young student which is making $6500 from an initial investment of $10. She decides to leave university and pay down her student debt.
Her story is displayed on a website which is akin to a tabloid newspaper (but in my case in Bulgarian). In the second line of the story, her name is suddenly changed to Sonya.
Why Your Enterprise’s Finances Rely on Employee TrainingGo to article >>
She’s working hard to help her family, but still wasn’t making enough the make ends meet. This all changes when she stumbles upon Binatex.
Youtube is the bread and butter for all binary options traders if they want to learn how to trade. The “magazine” claims to be telling her story and has other stories linking to the website of Binatex.
Making $100 in an hour changed this fictional character’s life and Sarah Parker (or Sonya) has become a teacher for up and coming victims of the brokerage.
The scam artists are cleverly entertaining the opportunity for a dreamlike life for young people. The key here is that this demographic is typically vulnerable, because of their lack of experience with online scams.
The Immigrant Father
Targeting another demographic in a similar way, the story of the happy father who turned around his family’s life is targeting another vulnerable demographic. The father of two is leaving his family and goes abroad to earn his keep and send money back home.
After months of difficulties, he is almost out of money and out of luck. He’s been fired and doesn’t have money for a return ticket home.
You guessed it right: with his last £13, he decides to open an account with Binatex. A brokerage which claims to be approved not only by CySEC but by pretty much any reputable organization in the target country. The happy father ends up making half a million.
The binary options scam artists around Binatex and 24Traderush are showing us the evolution of the nasty tactics typically used by binary options operators. The regulators seem powerless with their tools: issuing an official warning against the websites.