Binary options fraud is everywhere. The industry has been turned upside down, with many countries banning binary options altogether. The FBI – yes, the government agency – even warns against binary options scams.
The agency says it best: "the perpetrators behind many of the binary options websites, primarily criminals located overseas, are only interested in one thing – taking your money."
When you've been the victim of a scam, don't worry you're not alone, there are a few legal routes you can take to try and recoup your money. There's no guarantee that you'll get your money back, but there's always a chance.
1. Litigation Against the Broker
You have the option to litigate against a broker that has either stolen your money or refuses to release your earnings. The issues are vast when trying to litigate against a binary options broker, depending on where you're located.
1. Jurisdiction. If you're engaging in binary options contracts in the United States, you're likely using an unregistered broker that is from another country. You'll need to file a lawsuit against the company in their operating country in many cases.
2. Cost. The costs of hiring a lawyer or attorney can greatly outweigh the losses suffered in investments. You'll need to weigh your options here and determine if the cost of litigation is a viable option for you.
In the best-case scenario, you'll find an attorney that will have the broker's assets frozen and will recover your earnings. If a lot of people are filing against a broker, you may be able to join in on a class-action lawsuit or a lawsuit with multiple people.
The goal is to stop the fraud from occurring again and to recoup your profits in the process.
2. Initiate a Chargeback
If you used a credit card or debit card to deposit money into your account, you may be able to get your money back. Credit and debit card providers allow users to initiate what's called a "chargeback."
A chargeback is, in simple terms, you're way of telling the provider: "I was scammed."
You can initiate chargebacks when:
· Someone uses your card without your consent
· You purchase an item from a fraudulent company
· You were a victim of fraud of any kind
Binary options fraud, when the profits you earned will not be dispersed to you, is the perfect scenario to initiate a chargeback.
You'll need to call your credit or debit card company and initiate a chargeback. If the company chooses to refuse your request, you'll need to fight it or give up.
MyChargeback is a company that has stepped in to make chargebacks easier. The company will:
· Guide you through the Chargeback process.
· Offer assistance to expedite the chargeback
What MyChargeback offers is experience, which can help get your claim accepted and recover your funds. Cases are analyzed on a case-by-case basis so that your claim has a higher chance of being accepted.
If you don't want hiccups along the way, go with a professional company like MyChargeback.
3. Report Fraud to the Government
Stop fraud in its track by filing with a government agency. The government is slow, and there's no guarantee that any real recourse will come your way. But, if you want to make an impact and stop brokers from ruining other people's lives, it's time to contact a government agency.
There are a lot of agencies you can contact, but you should choose your own governmental agency.
Some of the most popular agencies to contact include:
· Commodity Futures Trading Commission (CFTC) for United States traders
· ActionFraud National Fraud & Cyber Crime Reporting Centre for UK traders
· OLAF for European Traders
A quick search for your country's fraud commission will provide you with the right agency to contact. Make a report, and if there are fines, penalties or actions taken against the broker, you may be able to recoup some or all of your profits.