How to Protect Yourself from Investment Fraud

Peer-to-peer lending, binary options, cryptocurrencies – everyday consumers are battered with ads, banners and advice on how to double their money, make huge returns on very little, and in general increase their wealth. While some of these investments are legitimate, many are not. A particularly egregious means of fleecing the public is binary options fraud.

photo/ Gerd Altmann via pixabay

How Binary Options Fraud Works

Binary options, like stock options, are usually handled through a broker. If you have a good, honest, licensed broker, you could make a little money. But if you are pulled in by a dishonest broker, you could lose not only your investment, you might also become a victim of identity theft.

Here is how it works. The dishonest broker offers to double your money. You make a deposit with him or her. He or she then asks for more money – often to recover losses from the previous deposit. Eventually, you might even be borrowing money to cover previous losses. People have even been reported to have committed suicide because they were in so deep.

Protect Yourself

If you believe you have been or are being defrauded, consult a wealth recovery firm such as Goldman Williams. Even if you cannot recover your money, you can help protect others. But before you reach that point, check out your broker before investing. Ask official agencies if the brokerage firm is registered and licensed, and with whom. Set up a buffering account to handle exchanges so that your primary credit cards or checking account are not involved. Place a limit on how much you can afford to lose as an investment and stick to it.

If You’ve Been Scammed

If you’ve lost money on a binary options investment scheme, report it right away. Call your bank, your credit card company, government agencies such as FSA or even the FBI. They might tell you they cannot help, but wealth recovery law firms such as Goldman Williams can sometimes recover at least part of your initial investment. In any case, the worst thing you can do is to remain silent about it. You might not be able to save your money, but you might be able to protect others.

Author: Lovisa Alvin