The Wealth Recovery Scams
Many of our readers will be familiar with the flow of crooks and and con-artists that made up a large contingent of the binary options industry. From rigging trades, preventing withdrawals and encouraging bad deals, many companies have made millions convincing innocent investors to part with their hard-earned money.
As a result, some regulators have now banned the sale of binary options to retail customers. For example, the European Securities and Markets Authority announced that it would extend its ban on binary options by three months.
These bans may prevent investors from being scammed in the future, but for those who have lost their money, they offer only minor consolation. In fact, recovering money from crooks, who remain almost entirely anonymous, has been a challenge for most victims of binary option and forex scams.
A new type of scammer, the recovery experts, has entered this void. Playing on the desperation of those who have fallen prey to crooks, these people seem to be trying to fool the former binary options clientele into separating with more of their money.
Finding these people is not difficult. Browse the comments section of any news article covering binary options and you will probably find an article in the following terms: I lost a lot of money by trading binary options. Fortunately, Company X helped me get my money back. find out more.
Dunde Wealth Recovery Group claims to be regulated by the FCA
A visit to one of these websites usually gives similar results. False office addresses, fake US phone numbers and no indication of who actually works for the firm.
Unsurprisingly, it seems that these companies also require upfront payments in order to start your file. Of course, the likelihood that you will see this money again is minimal.
One of the companies, the binary options recovery specialist, even offers a set of hacking services, including password recovery and credit score editing, as well as binary options recovery resources. Anyone wishing to use their services must also pay in cryptocurrency – making it nearly impossible to determine who you are actually sending money to.
Another company, the Dunde Wealth Recovery Group, has also reported being owned by Merrill Edge, an online brokerage service owned by the Bank of America Merrill Lynch. The company’s site also says the company is regulated by the UK Financial Conduct Authority, while the company says its office is in New York.
US telephone number, Ukrainian office
It is difficult to determine who is exploiting these sites, but in a few cases we can see that they are not yet where they are.
Users of Scam Warners discovered that the site investigators247, claiming to be able to recover funds lost to binary option scammers, registered by Qui Hoang in Odessa, Ukraine. This despite the fact of the list of US phone numbers on his website.
A similar website, Wealth Recovery Now, lists his address as Ohio and his US contact number. This page is not available to Canada.
There are two main factors driving the creation of these fraudulent websites. Most importantly, those who have lost money with binary options are usually desperate. It’s not targeting billionaires who can afford losing money, but ordinary people who may have lost all their life savings.
Anyone in that position is likely to be desperate for help.
This is especially true given how hard it has been for proper authorities, be it regulators or the police, to tackle scammers, most of whom are abroad and operate anonymously.
Recovery of binary options – the site also offers hacking services
As such, those who claim to be able to get money back for scam victims are talking to people who are probably desperate. They have to recover their money and have only a very small number of ways to do it.
Credulity is just as important in this case. People who are victims of binary options scams will likely have a limited understanding of business, technology and financial regulation.
The scammers claiming to be able to recover lost money are perfectly aware of this. Indeed, they use this fact to exploit them more and take even more money.
Preventing recovery scam people from operating seems to be a sisyphean task. The operators of the site are difficult to find and, as soon as one of them is closed, another appears elsewhere.
The best way to stop them might be to stop providing victims. Authorities could ensure that there are better remedies and, as difficult as it may be for them, victims of binary options brokers should not be tempted by fund recovery offers that seem too good to be true .