How They Do It
When you look at the small print in the contract or on the binary option website you will often find that they claim to be a company incorporated in a remote and secretive jurisdiction. The Marshall Islands is a favourite location.
It is easy to claim that they are an offshore company because it is often difficult to get information out of these jurisdictions, but it is not impossible.... However, the investor's money is rarely paid direct to the BO company. It normally goes through a 'mule'. A BO mule acts in the same way as a drugs mule i.e it transports an item of value on behalf of the criminal so that the ultimate recipient is able to hide both their identity and the final destination of the money. The mule is paid for that service.
The standard method is for the mule to establish a UK company, open a UK bank account, take in money from investors and then, after 6 - 18 months, empty the bank account and close down the company. They typically do this without filing any accounts to the tax authorities so there is no record of how much money they have taken in for the crooks. But, we don't let the mules get away with it. They do not realise that it is possible for an investor to have the company reinstated and to go after the owner of that company. That is one of the weapons in our armoury.
Please click below to view a list of binary option scam companies. If a company is not on that list that does not mean it is safe. It may be that it has not yet come to the attention of the authorities.