What is a Binary Options Scam

Binary options are a type of financial product classified as an exotic option. Binary options trading may seem like a new speculative market, but they’ve existed since 1974. They were created by one of the largest derivatives markets globally, CBOE (Chicago Board Options Exchange). It wasn’t until 2008 that binary options became primarily available to the public, and many entities copied the original CBOE asset type listing.

Binary options are a type of option that allows you to guess whether the option expires in the money – that’s it. Some unregulated binary options brokers allow for guessing on out of the money outcomes. A simple yes or no bet is made, hence the name binary. Contemporary binary options have expiration times between a week to a few minutes, with the majority of modern binary options platforms specializing in under one-day expirations.

Common scam types

• High/Low Binary Option

• Touch/no-Touch

• Boundary

What is Forex Trading?

Forex is the single largest traded market globally, with up to five trillion traded each day and is considered decentralized because there is no central processor for trades– in other words, there is no entity that acts as a central exchange like the NASDAQ or the NYSE. Instead, orders are completed by millions of traders using millions of various forex brokers around the world.

Foreign currency trading is one of the most leveraged markets in the world as well. In the US, regulations limit a person to 50:1 leverage. In other countries, they have zero limits on leverage. It is not uncommon to see some non-US brokers offer 1000+:1. Due to these factors and a few others which we will discuss, this is why scams can be so prevalent within the foreign exchange market.

Common scam types

• Ponzi Schemes and High Yield Investment Programs (HYIPs)

• Unregulated or fake broker scams

• Fake educational courses and training

• False signal service

• Automated trading or artificial intelligence

What is a stock trading scam?

Stock trading scams are the act of taking advantage of the uncertainty of the stock market and the greed or fear of investors to make illegal profits through fraudulent means.

Common scam types

• Ponzi Schemes

• Pump and Dump

• Penny Stock Scams

• Stock Broker Fraud

• Boiler Room Scams

• Signal Providers

What Is Phishing?

Phishing is a term used to refer to a variety of different types of online scams and cyber attacks in which the fraudsters pose as individuals or organizations in an attempt to lure their victims into divulging sensitive personal information. Cybercriminals have traditionally carried out phishing attacks primarily via email, but they can also use malicious websites, texts, and phone calls to phish for sensitive data.

There are many different types of phishing attacks designed to trick you into giving up a variety of information, most commonly account login credentials, bank account numbers, and credit card details. Scammers particularly target older individuals, who may not be as tech-savvy and aware of online scams, for phishing attacks. Once the scammers get their hands on your sensitive information via a phishing attack, they can use it to make purchases with your payment cards, transfer money from your bank accounts, steal your identity, or sell it to others who will use it to do some or all of the above.

Common scam types

• Credit Card Phishing Websites

• Credit Card Phishing Email

• Credit Card Phishing Texts

• Credit Card Phishing Phone Calls

What is Property Scams?

Property scams vary greatly in how they are executed, but they all aim to steal money from unsuspecting individuals who are interested in renting, buying, or leasing a property. In these types of scams, the fraudsters often pose as property owners, landlords, real estate agencies, property management companies, or other property-adjacent businesses to trick their victims into handing over money or sensitive financial and personal information that they can use to steal from them.

Common scam types

• Escrow Wire Fraud

• Loan Flipping Scam

• Foreclosure Relief Scam

• Moving Scams

• Commercial Real Estate Scam

• Home Inspection Scam

• Title or Deed Scam

What are Romance Scams?

There are lots of different types of romance scams circulating, but, in general, they are all cons that involve the scammer pretending to have romantic feelings towards their victim. The aim is to lure in the intended mark to eventually persuade them to give or send money or gifts to the scammer. Now, these cons often begin on platforms such as Tinder and other dating sites.

Romance scams can have devastating consequences for those that have fallen victim to them. As well as losing money and/or possessions of value, the victim is usually left broken-hearted, feeling extremely vulnerable, and may have trouble forming a trusting relationship for a significant time. This type of scam is particularly cruel and can have long-term effects on the people who have found themselves entangled in one.

Common scam types

• The ‘Classic’ Romance Scam

• The ‘Pig Butchering’ Scam

• The ‘Military’ Romance Scam

• Identity Theft

• Money Trading