The binary industry has come under fire from several regulators across the world in recent months and it seems like binary brokers’ troubles are about to get much worse.
The American Federal Bureau of Investigation has released a warning to the general public earlier this week, emphasizing the fact that many unregulated binary brokers are complete scams.
The FBI has acknowledged that fraud in the industry is a major concern and plans to join the battle to combat it. The agency revealed that the number of complaints received by investors has increased substantially in the last 5 years; last year hundreds of traders filed complaints against brokers after suffering huge losses of millions of dollars. The complaints were mostly related to “refusal to credit customer accounts or reimburse funds to customers, identity theft, and manipulation of trading software.”
While admitting that it hasn’t fully investigated the issue, the FBI stated that it certainly plans to do so, pointing out that binary options are now making up a fourth of all fraud complaints received in some European nations.
The Bureau has disclosed that it is collaborating with financial watchdogs including CFTC and the SEC, as well as other international regulators to form a united front against industry fraud.
In January 2017, it was involved in organizing the Binary Options Fraud Summit, along with Europol, to combine American and European efforts and deliberate the problem.
FBI Special Agent Milan Kosanovich who was present at the summit commented that “the key to addressing this type of fraud is national and international coordination between regulatory agencies, law enforcement, and the financial industry.”
He also mentioned that traders must be aware of the dangers involved in binary options trading and to do their homework before investing money with any broker.