Very sadly, too much often in the news we read or hear about binary options customers who have been defrauded of their money by scam firms. If you have been defrauded by a binary options broker, you may want to read these 5 steps that may help you recover your money.
1. Your first course of action should be to try to reverse the credit card transaction. Point. It is undoubtedly the best option you have if you have been defrauded.
Sometimes even only the threat of a chargeback can get you your money back. In fact companies may face problems when processing credit cards after a certain number of chargebacks, and hence they often prefer to just return a customer his money.
If the company decides to keep your money instead, then you can approach your credit card company or issuing bank and fill out all the paperwork necessary for a chargeback. You must mention fraud, misrepresentation and breach of contract as the reasons. You can more often than not count on the fact that scam binary options sales people tend to lie about their identity, location and financial experience, and this will help you to sustain your case.
Make the chargeback on your own, you don’t really need to pay anyone to help you with it.
2. If you just suspect you have been defrauded by a binary options company, you can first try to negotiate with it directly. It often happens that the fraudulent firms’ first response suggests to put more money in to recover your lost investments. Please, don’t do that! There are high chances you will add that money to the one you have already lost. If the binary options company refuses to refund your money, at least you will have additional documentation for your bank as proof of your good-faith effort to recover your funds.
3. Scammed customers should provide their bank or other financial institution with as much documentation as possible to demonstrate that false promises were made. Please make sure to send it all in a single email. Don’t just send emails for any documents you got. Take your time and arrange all the files in a single PDF. You can’t really expect that a bank employee does the work you do not want to do for your own good.
4. If you are able to ascertain the real location of the binary options firm that scammed you, you should provide your bank with that information. Many binary options firms claim to be calling from England or Scotland, but it often comes out that they are actually in Israel, Cyprus or Bulgaria. There is no question that this discovery will back your case. Indeed you may be even able to recover your money just by ascertaining the real address and names of the company owners, as it has happened to various defrauded customers already.
5. Unfortunately pressuring binary options firms or credit card issuers does not always work. Sometimes you have to take it a step further and go to litigation. But even with this, be always careful. Thus, if for instance you’re hiring an Israeli lawyer to help with an Israeli binary options firm, check with the Israeli Bar Association to make sure they’re legitimate, and try to get references and reviews of people you can trust. Too many victims have hired firms after being contacted on message boards by people promising to get their money back, just to find out later that they have fallen in another scam.