by Refundaroo | Jun 9, 2021 | Announcement, Binary options
The Australian Securities and Investments Commission (ASIC) has announced an official ban on binary options for retail investors. This ban means that only professional investors or those with significant trading experience can access these financial instruments in Australia.
Reasons behind the ban
ASIC’s decision aligns with similar measures in other countries and follows an in-depth study revealing significant financial losses among Australian investors trading binary options. The research indicated that nearly a quarter of investors did not recoup any of their investments. Moreover, some investors ended up paying more in fees than they earned from trades, exacerbating their losses. The overall risk was deemed too high for most retail investors due to inadequate protections.
Reactions to the ban
Experts outside the industry have lauded the ban as a consumer victory, while some insiders worry it might drive the market underground or to unregulated areas where control is limited.
Key points
- Ban announcement: ASIC has banned binary options.
- Statement from ASIC: commissioner john price stated, “it is too easy for people to lose large sums of money through this type of trading,” citing risks such as fraud, market manipulation, and other criminal activities.
- Deadline for compliance: binary options providers must cease operations in Australia by march 21st or face fines up to $220 million.
- Investor protections: providers may be required to repay funds taken from Australians since October 2016.
- Assistance for investors: investors who lost money due to fraudulent schemes can contact ASIC at 1800 065 943 for help recovering their losses.
Understanding binary options
Binary option trading involves predicting whether the value of an asset (e.g., shares) will rise or fall by a predetermined amount. These options can be traded on various markets, including currencies, commodities, and stocks. Investors choose their investment amount and contract duration, ranging from 30 seconds to 12 months, and predict if the asset’s price will hit a specified level before the contract expires.
Risks of binary options
Binary options are risky because they offer substantial risks for small rewards. If an investor’s prediction is correct, they receive a fixed profit known upfront. However, incorrect predictions result in total loss of the investment. The high frequency of losing trades compared to winning ones can lead to significant financial losses.
ASIC’s rationale for the ban
ASIC aims to protect investors from the dangers of binary options trading, especially from unscrupulous brokers. The ban prohibits any company from offering or advertising binary option contracts in Australia, regardless of the company’s location. However, the ban does not extend to overseas markets like Nasdaq or NYSE ARCA.
Legal implications
The ban restricts brokers from soliciting potential investors via email, telephone, or social media, thereby protecting Australian traders from predatory business practices.
Recovering your investments
If you’ve invested in or lost money through binary options, you can take steps to recover your funds. Binary options are unregulated in Australia, so local authorities cannot provide protection against fraud. To find trustworthy companies, consult reputable sources like ASIC’s website.
Additionally, consider contacting a professional recovery company like Refundaroo, which specializes in investor recovery and support services for victims of investment fraud. With over 20 years of experience, Refundaroo can help you recover your lost investments.
Don’t delay in seeking help to recover your money. Reach out to Refundaroo today for your free consultation.
by Refundaroo | Nov 16, 2020 | Cryptocurrency, Stock trading
Modern investors must be vigilant against various scams, including accounting scandals, insider trading, and other forms of fraud. One particularly deceptive scheme is the pump and dump scam.
In a pump and dump scam, stock investors heavily promote a company to create hype. Once the stock price is artificially inflated, these investors sell their holdings to unsuspecting buyers, causing the stock price to plummet. This leaves ordinary investors with substantial financial losses.
How pump and dump scams work
Creating hype
The initial phase involves existing investors spreading news and rumors about upcoming company announcements, promising significant increases in share prices. These announcements are presented as transformative events, designed to spark a surge in demand for the stock.
Attracted by the promising news, many investors purchase the stock, driving up its price in the short term.
Dumping the stock
After the stock price reaches a targeted high, the original investors begin selling off their shares to realize substantial profits. As the market catches on that these initial investors are exiting, the share price starts to fall.
New investors who bought into the hype are left facing significant losses. This strategy can be particularly harmful to inexperienced investors, leading to severe financial setbacks.
Example of a pump and dump scam
A notable example occurred in 2015 with the American firm Jammin’ Java. The company’s CEO and key promoters orchestrated a pump and dump scheme by disseminating false and misleading newsletters about the company’s prospects.
These newsletters quickly gained traction online, attracting a large number of new investors. The fraudsters also used complex offshore entities to conceal and move funds.
Before the scheme, Jammin’ Java’s stock was priced at $0.17 per share. After generating the hype, the price soared to an intra-day high of $6.35 per share. The perpetrators then sold their shares, reaping significant profits.
The securities and exchange commission (SEC) estimated that the fraudsters made around $78 million. The CEO and eight others faced civil charges from the sec.
Pump and dump scams can cause severe financial harm to investors. These schemes are often executed with such complexity that new investors may not realize they are being deceived.
The Jammin’ Java case highlights that even top management can be involved in such frauds. Investors should exercise caution before investing in overhyped stocks and conduct thorough research to protect themselves from these scams.
by Refundaroo | Oct 28, 2020 | Advice
The internet has revolutionized business practices, including trading in binary options and forex. While many brokers are reliable, some exist solely to scam you out of your hard-earned money. If you’ve been a victim of online fraud, don’t lose hope. Professional chargeback companies can guide you on how to recover your funds from scammers.
Common online scams
Online scams are diverse and numerous, but some of the most common include:
- Ponzi schemes promising high returns on forex deals.
- Fake investment management firms that disappear with your money.
- Dishonest brokers charging unauthorized fees or commissions.
- Malicious software designed for phishing, identity theft, or recommending losing trades.
- Binary options trading sites refusing to transfer credits.
Scammers’ tactics
- Scammers can range from obvious to highly sophisticated. Common tactics include:
- Irresistible offers urging immediate action.
- Impersonating reputable companies by copying their websites.
- Targeting new and inexperienced traders.
- Falsely claiming regulation to build trust.
- Making fund withdrawals difficult to frustrate victims.
- Unauthorized withdrawals from your account.
If something feels off, trust your instincts. Experts can help you recover funds if you’ve been scammed.
Recovering money after being scammed
The ease of recovering scammed money varies. For unauthorized credit card charges, you can often claim through your bank. However, other cases, like those involving wire services (MoneyGram, PayPoint, Western Union), can be more complex and might require professional assistance.
The funds recovery process
Funds recovery companies employ staff experienced in binary options, forex, law, and banking. To recover your funds, they’ll need:
- Relevant correspondence.
- Confirmation of financial transactions.
- Details of the broker’s offer and website.
Many scammers back down when faced with legal threats from professionals. Sometimes, litigation is necessary. Reputable recovery firms will only pursue legal action if there’s a strong case and often charge fees only if successful.
Choosing a trustworthy recovery company
Be cautious, as some recovery companies are scams themselves. To ensure you choose a reliable firm:
- Seek recommendations from friends, family, or trusted online sources.
- Verify the company’s website for security, a physical address, and contact numbers.
- Beware of unrealistic claims of guaranteed success.
- Speak directly to company representatives and ask detailed questions about contracts and fees.
If you’ve been scammed in binary options or forex trading, it’s reassuring to know that expert companies can help you recover your money. However, prevention is the best strategy.
Always be cautious and remember: If something seems too good to be true, it probably is. But if you do fall victim to a scam, know that there are professionals ready to assist you in getting your money back.
by Refundaroo | Jul 12, 2020 | Advice, Forex
In 1971, President Richard Nixon’s decision to let the US dollar float freely against other currencies marked the birth of the modern forex market. Investors quickly realized the potential for profit through currency fluctuations by buying low and selling high.
Two recent developments have further propelled forex into the spotlight. First, the internet has made forex trading accessible, quick, and convenient. Second, globalization has opened up new markets and opportunities.
Whether you’re a government treasury, financial institution, billionaire speculator, or individual trader, the basics of forex remain the same. It’s about the exchange of currency between parties at an agreed price.
Making money in forex is straightforward: Buy low, sell high.
While there are more complex aspects like spot markets, forward markets, and options markets, the fundamental principles remain consistent.
Forex regulation’s vital role:
Before diving into forex, it’s crucial to check your national financial regulator’s website. Even seasoned traders should do so regularly. Regulators are your go-to source for information on scams and practical advice to stay secure.
Scams are on the rise, emphasizing the importance of regulatory oversight in protecting investors. Regulators maintain a register of authorized firms and issue warnings about dubious companies.
Understanding core forex regulatory bodies:
According to recent statistics from the Bank of International Settlements, the UK accounts for a substantial 43% of the global forex market, followed by the USA (16.5%), Singapore (7.7%), and Hong Kong (7.6%).
The dollar dominates currency pairings, followed by the Euro, Yen, and Pound. Let’s delve into the regulatory bodies governing forex in these jurisdictions:
UK: Financial Conduct Authority (FCA)
USA: The National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC)
Singapore: Monetary Authority of Singapore (MAS)
Hong Kong: Hong Kong Securities And Futures Commission (HKSFC)
EU: Markets in Financial Instruments Directive (MiFID)
Japan: Financial Services Agency (FSA)
It’s imperative to only engage with companies registered with the relevant regulatory bodies in these countries.
The critical need to avoid unregulated forex brokers:
Some forex scammers exploit investors by registering in lightly-regulated countries or falsely claiming overseas registration. Tactics include Ponzi schemes, promises of guaranteed profits, cloned websites, and fake endorsements.
Despite awareness, people still fall victim to scams every year. A recent case in the US involving Black Diamond Forex exemplifies this.
Seeking redress against unregulated forex brokers:
If you’ve been scammed by an unregulated forex broker, you may feel helpless. However, specialized fund recovery services offer a potential lifeline. Companies like Refundaroo employ experienced financial and legal experts to help victims retrieve their funds from unregulated brokers.
In conclusion, understanding forex regulations is paramount for safeguarding your investments in the global market.
by Refundaroo | Jun 13, 2020 | Advice, Announcement
Introduction
With the rise of online trading and increased internet reliance, the prevalence of scams has surged. Scammers employ increasingly sophisticated tactics, and a wide array of methods exist to part individuals from their money. Everyone, regardless of their digital literacy, is at risk of falling victim to these scams.
While we often trust banks to handle credit card fraud, other scams, such as those involving cryptocurrency or Nigerian advance-fee fraud, present unique challenges. This guide explains what chargebacks are and how they work to help you recover your funds.
Understanding Chargebacks
A chargeback is the process of reversing fees charged through a transaction, whether it’s on a credit card, debit card, or via PayPal. It functions similarly to requesting a refund for a missold or defective product.
However, chargebacks can also be initiated in cases of fraud, where the transaction wasn’t authorized by you, or if you were misled into a scam like a Ponzi scheme or a fraudulent broker.
How Chargebacks Work
The process of a chargeback varies for the consumer and the company pursuing the funds. As a consumer, you need to contact the relevant authority, provide evidence, and await the results.
The company handling the recovery will review the evidence, verify the fraud, confront the scammers, and attempt to recover the funds. This process demands extensive knowledge, resources, and time, so it may take a while. Even if fraud is confirmed, reclaiming the money isn’t always straightforward.
Duration of Chargebacks
The time it takes to complete a chargeback depends on the method used to reclaim the funds. For instance, the time limit for a PayPal chargeback differs from that of a bank or credit card.
Chargebacks can be complex and may take up to 45 days, sometimes even longer. In some cases, you might wait up to six months, depending on the amount involved and the nature of the chargeback. It’s essential to check with the company performing the chargeback to get a better estimate.
Pros and Cons of Chargebacks
Pros:
- Funds Recovery: The primary benefit is recovering lost money, which is crucial if you’ve fallen for an investment scam. Reclaiming your funds can be a significant relief.
- Sending a Message: Pursuing a chargeback signals that you won’t tolerate being scammed, potentially deterring future attempts by the same scammer.
- Maintaining Reputation: If your business is scammed, a chargeback can help you recover funds discreetly, protecting your reputation.
Cons:
- No Guarantees: Chargebacks aren’t always successful, especially if the scammer has moved the funds. Quick action increases your chances, but there’s no certainty.
- Costs Involved: Depending on the amount lost, the fees for a chargeback service might be high. However, chargebacks through your bank or PayPal usually only cost you time.
Steps to Initiate a Chargeback
Step 1 – Reach Out: Contact the institution that held the lost funds. For example, if your debit account was used in a scam, reach out to your bank. Alternatively, you can use a chargeback company like Payback LTD for a potentially higher success rate.
Step 2 – File Your Dispute: Provide your reasoning, account details, transaction information, and any evidence. The more information you provide, the smoother the process.
Step 3 – Wait for Results: After filing your dispute, the best you can do is wait for the outcome. You might need to provide additional information, but the primary task is to let the experts handle the process.
Using Chargebacks for Different Markets
- Forex Market: Chargebacks can be initiated not just for stolen funds but also for poor service quality or brokers withholding funds for personal gain.
- Binary Options Market: This market is rife with scams, making chargebacks essential for recovering lost funds.
- Cryptocurrency Market: Due to the anonymity and lack of traceability in crypto transactions, scams are common. Chargebacks can help reclaim funds lost to fraudulent platforms or brokers.
How Refundaroo Can Assist
At Refundaroo, we have recovered nearly a billion dollars in stolen funds within a few years. Our expertise covers forex, crypto, and advance-fee scams. We act swiftly, gathering evidence and confronting scammers to recover your money.
