User:Smallbones/Pres1

Anatomy of a Binary Scam
based on CFTC Fraud Advisory, Binary Options, June 6, 2013

Binary options complicated?

 * As easy as 0-1; heads-tails; up-down, or win-lose.
 * Client bets a stock price goes up.
 * If price goes up they win, e.g. $70 on a $100 bet.
 * If the price goes down, they lose $100.
 * a very bad bet!
 * Say you make 3 “trades”
 * L, W, W, net = -$100 + $70 + $70 = $40.
 * If you lose the 4th “trade” net $40 + -$100 = -$60
 * even though you won 2 out of 4 bets.
 * usual bet, asset X's price goes up (or down) in the next 60 seconds

The keys for Binary Scammer to make this work
1. get enough leads
 * e.g. from gambling websites, spam e-mail, social media
 * confirm that Binary Scammer is a legitimate brokerage firm
 * use high pressure sales tactics.

2. Play the above game as long as possible.

3. Fix the ending prices (“the wire.”)

4. Just refuse to let them have their deposit back.

That’s all there is to the scam.

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