Binary options are high-risk, all-or-nothing bets. They are banned in New Brunswick.
How it works
With binary options, an investor “bets” if the value of an asset like stocks or foreign currency will increase or decrease in a very short period of time (as short as a few minutes). If the investor guesses correctly, they get a predetermined payout. If the investor is incorrect, they lose everything.
The sales pitch to victims offers an opportunity to invest money easily and earn returns quickly. They will tell you binary options are risk free. This is a lie. A so-called “expert trader” works from a script and uses high-pressure sales tactics to get you to set up an account on their website. Once an account is set up, they entice you with “free money” to start trading. Then they get you to “invest” your own money using a credit card, pre-paid card, or money transfer. In most cases, you are never really investing your money and no trading is taking place.
Even if you “win” the wager, you are unable to withdraw the money from your account, because the scam artist has already taken it. You will be given excuses as to why you can’t withdraw your money or close your account. You will be pressured to invest more. In fact, they may use your credit or personal information to access even more funds without your knowledge. At the end of the day, it is a scam and the money is gone.
How to protect yourself
Avoid binary options at all costs. Selling binary options to New Brunswickers is banned.
How to report it
If you suspect you’re a victim of a binary options scam, or attempted binary options scam, complete the FCNB Submit a Complaint form.
FCNB is responsible for the administration, education and enforcement of provincial legislation that regulates securities, insurance, pensions, credit unions and certain consumer services. If your complaint relates to an area outside of FCNB’s regulated areas, we may refer you to the appropriate reporting agency or organization.
Learn more about binary options at www.binaryoptionsfraud.ca