The City of London published Richard Branson Impersonation Binary Options Scam announcement. Authorities keep on warning against binary options and fraud Forex brokers.
19 May, AtoZForex – More and more regulators are reporting the rise of the Binary Options fraud recorded in their jurisdictions. In relation to these developments, global regulators are tightening their Binary Options regulatory rules.
Richard Branson Impersonation Binary Options Scam
Thanks to umbrella licensing and limbo on its industry belonging Binary Options fraud has been rising in the UK as well as globally. Financial regulators report the rising number of enquiries and complaints about the Binary Options scams. Moreover, the fraudsters are utilizing sophisticated scam techniques, which involve the impersonation of genuine individuals and businesses.
The City of London police has published an announcement in relation to this scamming tactic used by Binary Options fraudsters. The founder of Virgin Group, Sir Richard Branson, is also joining the fight against Binary Options fraud. He has warned the public stating that criminals have been using his name or the name of his companies to appear genuine in order to mislead investors. He found out about this practice when the victims of such scam have contacted him, stating that they have lost money. Mr. Branson has commented:
“I am determined to prevent anyone being confused into giving money or their personal information away on a false pretense. These scams can be terrifyingly deceptive and I would urge everyone to look out for these stories and report them as soon as you see them.”
Will victims get their funds back?
The warning from Mr. Branson also features some shocking numbers. Action Fraud, the national fraud and cyber crime reporting center of the UK have reported from £2 million to £13 million in losses fro Binary Options fraud during the last financial year.
One of the main concerns about victims is that people cannot get their funds back or count on the protection from the UK regulator, the Financial Conduct Authority. The UK watchdog does not monitor the Binary Options sector. Typically, the Gambling Commission of the UK deals with Binary Options cases. However, the latter only oversees the activities of the regulated entities.
After this Richard Branson Impersonation Binary Options Scam, the regulators have advised investors to report any suspicious cases to the Police. Moreover, they urge investors to always check the reliability of the firm before doing any business. See the original announcement from the City of London Police.
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Should regulators tighten Binary Options regulation rules?
There is a Binary Options regulation limbo. Though, some authorities have adopted it as a Financial product some don’t know how to mark it. However, this regulatory approach might be too loose. Some of the jurisdictions have been imposing stricter guidelines in regards to the Binary Options regulation as well as operation. For instance, Israeli authorities have recently arrested a man over the Binary Options fraud. In addition, Canada is looking into ways of banning the advertisement and sale of the Binary Options across the country.
On the contrary, Russian Central Bank, the regulator of the financial markets in Russia, has a somewhat lax stance in the Binary Options industry. In fact, the RCB has referred to Binary Options only once in the official documents. However, Russia might appear as one of the key targets for Binary Options fraud. Statistics by Forbes show that Russia is accounted for almost 30% of four of the biggest Binary Options websites this April. If you ask me, I do not consider Binary Options at its current stage as a financial product. It belongs to gaming industry.
Have you been a victim of Binary Options Fraud? Contact AtoZForex now or just comment below.