What the SEC Says About Binary Option Fraud Victims

In recent years, binary options have become a very popular tool to utilize for making substantial returns on investment. Given that this practice is rather new in comparison to traditional investment options, binary options still have a great deal of regulation to face in terms of protecting consumers from making investment transactions with these companies that they should not be. Where the SEC faces a great challenge in the United States is trying to ascertain how they can effectively regulate the binary options companies that are not based within the United States along with what measures they need to pass within the United States in order to regulate American entities as well. Many bogus binary options firms operate from Israel or other foreign countries.

A Brief Overview of the SEC

The Securities and Exchange Commission’s purpose is to promote fair and just markets within the United States to protect American investors. They regulate many sectors of the financial investment field in order to enforce strict regulations in the financial sector and to also prosecute those that violate their financial regulations. The SEC also makes an effort to protect Americans from the fraudulent actions of foreign-owned financial companies. This is particularly true with regards to binary options. Also, the SEC may bring fraud charges against a company. However, most victims need to retain their own counsel to recover their losses.

Words of Advice from the SEC

You Should Not Be Providing Copies of Your Important Documents: Providing copies of your passport, driver’s license or any form of identification is highly discouraged by the SEC. If you would like to engage in binary option transactions, then you have to research a great deal the site you will be working with so that you do not have issues with identity theft.
Don’t Put in Excessive Amounts of Money in to Earn Back More Money: Many of these binary option sites have an option to bet a large sum of capital with the pretense of making substantial returns. The SEC does not recommend using these large sum options because more often than not, the software may be poorly designed or there may be a hidden trick that ensures you will not win the money you are expecting to.
You Can Lose Instantly with “All or Nothing” Options: Even though traditional “All or Nothing” Options look appealing, they are in fact the options with the most risk that are prevalent on binary options sites. For this reason, they should not be the first option that you try to do.
Do Not Assume the Software is Engineered Fairly: This is particularly true for companies that are from abroad or do not have established commercial history. The software may have defects that make it impossible for the consumer to win in the end. If you see any reviews about this is your research, it is best to not conduct trades with that company.

The Benefits of Coming Forward if You Are a Binary Option Fraud Victim

Contrary to popular belief, there is a possibility to recover if you have been a victim of binary option fraud. Keep this in mind if you suspect that this has happened to you and reach out to lawyers that will be able to protect your interests and educate you on the process of not only recovering what you lost, but also, helping to prevent that company from taking advantage of future consumers. Our lawyers work on a contingency fee basis.