There has been a "sharp rise" in scams involving online trading in binary options, said the police on Wednesday (Dec 14), with more than 30 reports of such scams lodged to date, and investors losing more than S$1 million to unregulated binary options trading platforms.
Traders try to predict whether the price of the underlying asset will be above or below a specified price at a specified point in time. This can range from a few minutes to a few months in the future.
Binary options are speculative and risky, and many online platforms offering binary options trading are fraudulent, police said.
In these cases, the investors either lost all their money or could not withdraw the balances in their accounts. Some also had unauthorised withdrawals made using their debit or credit cards after (handing) over their card details for payment.