US CFTC releases Anti-Fraud Binary Options Videos


US CFTC releases Anti-Fraud Binary Options videos, which provide an insight into the methods that fraudsters use to trick investors and illicitly gain their money. In these videos, Nick Morrison and Lowell Enlow, two experienced investors, share their stories about how they were tricked into the Binary Options scam.

19 April, AtoZ Markets The US Commodity Futures Trading Commission (CFTC) has made an announcement today, thus releasing a series of videos entitled “The Truth Behind Binary Options Fraud.” These videos provide an insight into the methods that fraudsters use to trick investors and illicitly gain their money.

US CFTC releases Anti-Fraud Binary Options Videos

The first video can be seen below:

Erica Elliott Richardson, the CFTC Director of Public Affairs has commented on the release of the educational videos:

“Binary options can be helpful hedging tools for some traders, but there are only a few entities that can legitimately do business with individual investors in the U.S. These videos serve as a wake-up call to investors to check the registration of the company they are trusting with their money.”

In these videos, Nick Morrison and Lowell Enlow, two experienced investors, share their stories about how they were tricked into the Binary Options scam. The scam has eventually stolen more than $1 million from investors across the US. Morrison and Enlow share how even experienced investors can be conned when fraudsters create legitimacy by advertising “infallible” trading platforms software.

Not all Binary Options are scams?

The CFCT has stated that it released these videos with the purpose of reaching investors globally. Most of such fraudulent operations are based in different countries, while they have no physical location in the US. These entities usually use the Web, mobile applications, social media and phone calls from “brokers” to trick victims.

It is a usual practice for these frauds to create professional looking websites that look like legit trading platforms. Commonly, on these sites, investors can open accounts with ease and fund their accounts with a credit card.

Yet, not all of the Binary Options trading is fraudulent, according to the regulator. Some of the Binary Options products can be legally traded on regulated exchanges in the US. The CFCT also reminds that the presence of registration is not a guarantee against fraud or mismanagement. However, it brings a higher level of security and accountability.

Below you can find the second video from the CFTC:

Dan Rutherford, Deputy Director of CFTC’s Office of Customer Education and Outreach, has stated:

“We strongly encourage investors to take the simple first step of checking the registration status of their broker on SmartCheck.gov or the RED List before trading.

In addition to the videos, the SmartCheck website offers resources and tools to help traders and investors spot other warning signs of fraud and a direct way to report suspicious activity.”

Think we missed something? Let us know in the comments section below.

    Share Your Opinion, Write a Comment