Israel is becoming notorious for defrauding victims who have deposited money in binary options. The industry grew fast in Israel. It is understood that many of these fraudulent brands are working under multiple names. It is estimated that the industry employs over 20,000 people in Israel alone, with an estimated annual worth of $5 -$10 billion USD.
How the scammers work?
The ‘brokers’ use alias names, false qualifications and lie about their locations when they cold-call potential customers to persuade them to start trading. Their sole objective is to build trust in order to coerce the trader into depositing. Israel is amassed with English, French and Spanish speaking immigrants, so they are able to target all markets.
They’re becoming renowned for manipulating trades to ensure the trader eventually loses all trades. The trading platforms are often rigged by the fraudulent firms. They manipulate the software and numbers shown on the screen to make sure the profit is minimum or none at all. Moreover, they also rig the numbers to dupe the customers into thinking that they are making profit, while in reality they are not. Thus, in reality no trades are ever actually carried out…
The technology platform providers are very much immersed in the binary options scam operation, since they provide the trading platforms and have been known to help brands manipulate numbers to ensure clients lose. These platform providers are on a revenue share with the binary options brands, thus it is in their best interest to make sure clients are placing losing trades.
Binary options banned in Israel
The scale of the scam has clearly become too much for the Israeli Government to continue ignoring. Therefore, the Israeli Government passed a law in October 2017 to ban binary options from operating out of Israel. The industry is estimated to have defrauded tens of thousands of people worldwide. Although there was tremendous pressure by supporters of the binary options industry against the passage of the law, it was eventually passed. Its supporters said that the industry is a high-tech sector in Israel, which is working in favor of the government by bringing in huge investments. But those who gave arguments against it said that the industry was working to exploit innocent and unsuspecting customers.
According to this new law, binary options companies can no longer operate out of Israel. The law states that these companies have three months to shut down all operations, or else face jail time. The binary options industry is so toxic that it has damaged the reputation of the tiny, but vibrant country. Critics say that binary options are worse than gambling. As gambling is banned in Israel, how is it possible that binary options has been running for over 10 years?
The scam is so sophisticated that innocent traders and many employees who worked in binary options believed that this was a legitimate industry. If you have been scammed by binary options, there are companies you can contact to successfully help you recover you stolen money. After doing extensive research, asset recovery agency Wealth Recovery International have been making a real dent in the binary options industry and have so far recovered over $6m USD for its clients.