Part
2
One
of the biggest frauds in the UK
Even when the bets are
legitimately placed they are hugely risky, but police say the
industry is rife with fraudulent brokers.
While other countries have banned
this business, a regulatory loophole has left UK victims completely
unprotected, despite police saying binary options trading has become
one of the biggest frauds in the UK.
Read the Bureau’s investigation:
'How Brits are losing millions to the UK’s biggest scam while the
government stands by'
The National Fraud Intelligence
Bureau’s head of crime, Detective Chief Inspector Andy Fyfe, said
police receive an average of two reports of binary trading fraud a
day, with the average investor losing £16,000. “This is just the
tip of the iceberg,” he said, but to date there have been no
convictions because the fraudsters are usually located abroad.
Binary options trading is not
overseen by the Financial Conduct Authority (FCA) because it is
classed as gambling rather than a form of investment. But it is not
overseen by the Gambling Commission either, because that institution
only regulates operators that have equipment based in Britain.
The Treasury issued a consultation
paper a year ago which proposed bringing binary options trading under
the FCA’s remit. Since then, no action has been taken.
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