Section 75 Binary Options claim

Kimmy12

Thank you bigadaj. That is what I expected. I have contacted the FCA, who have informed me that Plus Option is an illegally operating scam. They put me in touch with Fraud Watch, and I have filed a report with them. As my partner didn't authorise the final deposit, his bank is pursueing the possibility of a charge back for that final amount. They have explained that they have attempted to assist other customers (in the same situation) in this way, with varying degrees of success. I think it unlikely he will ever see his money, but the advisor at the FCA suggested that it was reasonable to ask his bank to look into this for him. We await developments with little hope of a happy outcome. Until this happened I had never even heard of binary options. My partner is upset and embarrassed, so is unlikely to share what has happened to him with others, and therein lies the problem with these scams. People just don't find out about them until they fall into the trap themselves.

eco_warrior

Chargebacks for this are next to impossible, esp since mastercards change in stance in April this year. I’ve seen folk lose nearly 100k to it

Kimmy12

bearcat16 wrote: »

So all you have to do to avoid prosecution for fraud is be "difficult to track down". I'll remember that when I embezzle my next million.

Binary options, and any kind of trading with instruments, is not a scam, it isn't fraud, it's not illegal. It is legitimate business, the same as online casinos are.

With respect, I doubt that the police agreed with you, and I doubt even more that they just shrugged their shoulders and said we can't do anything because they're difficult to track down.

I would believe they said they couldn't do anything because no fraud has been committed.

Actually when I filed a report to Fraud Watch about this exact same thing - though with a different online trading platform to the one stated by the OP - the person at Fraud Watch said it WAS illegal and WAS a scam. His exact words.

chattychappy

The selling of of financial products/services in the EU is highly regulated. Transactions can be illegal because the sellers are people who are not authorised or exempt under S19 Financial Services Markets Act 2000.

S75 makes CCs jointly liable for breach of contract/misrepresentation (subject to provisos).

It would be quite a leap to hold a CC liable via S75 for it's involvement in the illegal selling of a financial product/service - but personally I think that's the best hope.

eco_warrior

chattychappy wrote: »

The selling of of financial products/services in the EU is highly regulated. Transactions can be illegal because the sellers are people who are not authorised or exempt under S19 Financial Services Markets Act 2000.

S75 makes CCs jointly liable for breach of contract/misrepresentation (subject to provisos).

It would be quite a leap to hold a CC liable via S75 for it's involvement in the illegal selling of a financial product/service - but personally I think that's the best hope.

Agreed. I've not known any S75 claims to be upheld but some may have been. Banks would view the service as being provided once the money is loaded to the trading account. Transactions from this point aren't being made from the credit card so S75 doesn't apply, and its these transactions from which the problems arise i.e. cash all gone

chattychappy

The barrier is that S75 doesn't make the CC a party to the transaction in the normal sense. It just makes the CC liable for breach or misrepresentation. I recently encountered some pyramid sellers selling a financial service. The FCA has said that this particular scheme is almost certainly illegal, meanwhile the sellers are saying they are not doing anything wrong and that it's lawful. I'm sure many have signed up on that basis - so in this example there is a potential misrep claim.

bris

This thread is over a year old, why bring it back up?

chattychappy

bris wrote: »

This thread is over a year old, why bring it back up?

Weird - my post is almost a year since the previous one, but I wasn't digging back. Perhaps there was a post in between (eg spam) that got deleted but brought it to the top long enough for me to reply.

msallen

Brandoon wrote: »

Was filling reluctant in posting this but just have to post it so that traders out there would be cautious. Was con some years back by b4binary, was promised bonuses but didn't know they were fake as at then,they were so tempting i fell for it, when it came to me withdrawing my money thats when i knew what was happening, then binaryuno came along promising me smooth and hiccups free withdrawals, still fell for there trick also, they drained off what was left but was later rescued out of all this mess through the aid of Adams. Got to know through an article he wrote concerning binary options and scam, together and all the documents i provided he was able to recover all i lost, pls beware of B4binary and Binaryuno. <email not quoted>

Ah - the old "this is how you can get your money back" scam.

Very amateurish Brandoon. You'll have to do better than that.

JNoble

In my case I had money in the account unused and the broker disappeared. Website down and seems untraceable. I have so far been rejected by my CC company and still trying to pursue the return of funds.