Mar 03, 5: Mar 03, 9: A father of four, Fred Turbide was found dead in December after losing his life savings to a binary options trading scam. Traditional stock options allow investors to buy a stock or other investment for a certain price, on or before a certain date.
As such, gains and losses are limited to the gap between the option price and the market price. But binary options are a much more short-term bet on the direction of an asset. Unlike regular options, they are all-in: If you're wrong, you lose it all. Roy says securities regulators across the country received complaints about such scams last year, but the true number of victims is likely far more. Regulators are now cracking down on those ads.
Jason Roy is heading up the new CSA task force cracking down on binary options scams. Courtesy Manitoba Securities Commission. The overwhelming majority of binary options sites are rigged to lure in victims with small early returns, the CSA says.
But in many instances, no actual trading occurs with any money the scammers receive, and the entire interaction takes place for the purpose of stealing money. Last December, he killed himself in the garage of the family home.
He was immediately suspicious but played along for more than an hour to get information. He signed up under an alias and fake email address. The phone number he was given looked Canadian, as did the address — but neither was legitimate. The person on the phone became increasingly desperate to get his credit card information.
While binary options are legal in some places, there are no firms registered to sell them in Canada. Anyone who feels they've already fallen victim should immediately cancel their credit card and contact the CSA. Recent shows and interviews. The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
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