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Binary options scams typically use social media, online ads, chats, unsolicited texts, and cold calls.
They place ads online, typically directing you to a well-designed website that seems legitimate.
Or, genuine-sounding automated robo-calls prompt you to stay on the line to speak to a “trader.” Scammers work from scripts to sound friendly and professional, but they are trained in high-pressure sales tactics.
The experienced “trader” will bait you with free or bonus money to open an account. Then they ask for your own money via credit card, pre-loaded card, or money transfer – with promises of easy, impressive returns.
In reality, it’s often all fabricated, with a small initial success meant to build trust, but nothing may actually be traded.
Once you try to withdraw money from or close your account, or if fraudsters believe you’re catching on, the “trader” will ignore your phone calls and emails.
In fact, they may use your credit or personal information to access even more funds without your knowledge. After they steal as much of your money as they can, they disappear.