Binary Option Fraud

The SEC has received a growing number of reports concerning fraudulent activities tied to websites promoting binary options trading through online platforms.

• Avoid depositing checks from unknown sources.
• Recognize counterfeit checks.
• Beware of requests for partial refunds

Many of these platforms operate in the binary options market without complying with U.K. regulatory standards, and they may be involved in deceptive or unlawful practices.

A binary option is a specific type of contract where the outcome determines a fixed payout based on a simple yes/no question. Typically, it is based on whether an asset's price will rise or fall past a set threshold. Once a binary option is purchased, no further decisions are needed from the holder, as the option automatically settles. Unlike other options, binary options do not grant the right to buy or sell the underlying asset. Upon expiration, the holder either receives a fixed payout or nothing at all.

We are committed to investigating and taking legal action against scammers to help recover funds for those affected by these fraudulent schemes.