You have a lot of investment options at your disposal. You might be excited about your prospects when choosing one of these options, but your hopes can quickly be dashed when you’re subjected to securities fraud.
The sad truth is that fraud occurs regularly in the securities world, leaving unsuspecting investors with serious financial harm. It can be hard to differentiate a bad investment from a fraudulent one. Investors need to remain diligent in assessing your situation to ensure that you’re not unfairly taken advantage of.
The binary option is one type of fraud that is becoming increasingly common.
The basics of the binary option
A binary option is predicated on a yes or no answer. Once the investor buys into the option, there’s nothing left for them to do except wait to see if they’ve chosen the right option.
If so, then they’ll receive a profit. If they’ve chosen the wrong option, then they’ll recover nothing and lose their investment.
For example, the option can be as simple as answering whether a certain asset will be worth a certain amount on a certain date or at a certain time. This type of investment is popular in online trading forums around the world.
The dangers of binary option trading
There’s a lot of risk with binary options trading, as fraud is rampant in this arena. In many instances, the names of celebrities and successful business people are fraudulently used to entice people to engage in these investments.
In other cases, online trading forums manipulate the software to generate losing bets, thereby cheating the investor out of their money. This often occurs when software extends time on a winning trade until it becomes a losing trade.
Another way that fraud occurs with binary options is by marketing inflated rates of return. This tricks investors into believing that they’re buying into something that isn’t as reliable as they think.
There are also concerns about identity fraud when it comes to binary options trading. Many online forums are run out of other countries, where scammers try to obtain as much personal information as possible. Be careful with whom you share your information and where you share that information.
Have you been defrauded through a binary option?
If you think you’ve been defrauded by binary option trading, you need to consider your options moving forward.
While legal action certainly might be justified, you’re going to need evidence to support your position. To gather that evidence, it’s best to ensure that you have records pertaining to all of your trades, as well as your communications with the investment firm. It might also be helpful to talk to others who have experience with the firm in question, as they may be able to help you paint a picture of more widespread fraud.
You can also consider filing a complaint with the SEC. This government organization has the resources needed to delve deep into these cases and track financial records and software operations. Its findings might be of some assistance in the event you chose to bring a claim.
If you’re considering taking legal action, then there’s a lot of work ahead of you if you hope to build a strong claim. That’s why it’s so important to be thorough in organizing the facts of your case and speak with an experienced reputable securities attorney to determine if you have a viable claim.