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Phone scams by St Binary or Boiler Room 2.0

St Binary

Fraudulent schemes in binary options trading have been in the media spotlight recently. The latest high-profile cases were in Israel in 2016, when the prosecutor's office received numerous complaints about such companies.

The Times of Israel decided to begin its investigative reporting on the fraud. While for customers, who want to return their money, it is not an easy thing to contact a scam broker, getting a job in such a firm is a breeze. They promote themselves here, there, and everywhere.

There are many job ads with a vague description in social networks. The Israeli journalist sent his resumé to one of these agencies. A few days later, he was contacted by an anonymous number and was invited to an interview.

When the reporter came to the meeting, it turned out that Metamorpha Management was not a recruitment office, but a binary options company called Binary St or St Binary.

Binary St office

It was found that the best candidates must have an excellent command of English and persuasion skills. 

A journalist was successfully given probation. Below are the inside facts about the phone scam from the sales agents of binary brokers.

How do binary brokers’ agents work?

The company’s office is located in Ramat Gan, Israel. There is a small room full of computers and phones. Three big television screens are booming Bloomberg TV. The background TV noise helps persuade customers on the other end of the line that they are talking to international experts who work in a financial hot spot. For similar reasons, staff is banned from speaking in a language other than English. They all call each other by fake names they use in their calls.

The work of a sales agent is aimed at persuading clients to deposit money in binary options trading by phone. Some agents with extensive experience are personal managers, giving recommendations on trades and in all ways encouraging customers to continue replenishing their deposits.

The working day often lasts from 11:00 am to 1:00 am to contact as many clients as possible. The sales agents drink a lot of coffee and energy drinks, which undoubtedly affects their emotional state. This is a real marathon. A whiteboard lists the names of all the employees. Columns detail their clients’ deposits.

Sales results board in Binary St office (photo by Iacopo Luzi)

Salespeople at Binary St (aka Smith and Taylor Options) are paid a wage of about $1,440 per month plus a bonus of every deposit they get from customers: $20 for an initial deposit of $250, $80 for a deposit of $500, and $120 for a deposit of $1,000.

“Once a client opened an account for $250,000 and the sales agent got a bonus of $25,000,” one of the employees said.

The sales agents make about 30 calls an hour on average, using a system that hides the phone number’s country of origin. Most often they pretend that they are calling from Zurich, Paris, or London.

Clients whom sales agents called were people who had provided their details after seeing some ad on the internet or had responded to email newsletters.  Sales agents had all personal information of customers, which they could see on their individual computer screens — first name, last name, country of origin, phone number, address, and even social security number.

The computer systems also enable them to see whether customers are logged in to their accounts.

It is easier to convince clients to trade when they are online, because they are ready to follow the manager’s instructions at the moment. After customers are convinced to make a first deposit, they are guided through a trading process and are told to invest more money.

The agents admit that they have no interest in the success of the client's trade; the goal is to make them deposit.

They talk in a friendly, but insistent manner. Sometimes it is even threatening.  Often customers just give up and agree to put in money. This is a kind of psychological violence, which works especially well with desperate and poor people.

Out of 70 calls, there are only a few when the client does not actually deposit funds or at least promises to do so.

If clients have an account that is blocked for international transactions, agents tell them to call their bank and unlock the payment. “It’s going to take five minutes,” the sales agent says.

“I will rob you blind.”

Before and after a phone call, the sales agents insulted customers. “I will rob you blind,” one agent said, muted.

Phrases the journalist heard made him believe that the binary broker’s employees would do almost anything to get their customers’ deposits. “This thing will change your life,” they assured clients. “You need to be a winner,” “You have a 70 to 80% chance to win here,” “Do you want to remain poor and miserable for the rest of your life?” “You will make a lot of money.” And this was only a small part of phrases, using which they tried to entice new customers.

The sales agents always reassured their clients and potential clients that Binary St is a regulated company, not a fraudulent firm like others. “We are professionals,” they said. “We make millions for our clients every day.”

The Times of Israel documented some of the numerous tricks that fraudulent binary options brokers use, having analyzed one day of work at Binary St.

1. Misrepresent themselves as investment experts, lying about their identities and location.

2. Take more money from a credit card than a client has agreed to deposit.

3. Make trades without clients’ permission.

4. Reject withdrawal requests.

5. Manipulate trades through rigged trading platforms.

The opinion of the review`s author is private and not obligated to reflect the position of the resource. If you have any remarks and suggestions on new articles please contact us via this form.
Author of St Binary: Pello | Date 2019-05-17
All of my withdrawal requests were rejected by St. Binary. I deposited more than a thousand dollars at this broker but I was never able to take anything back. They made all kinds of excuses such as problem with the bank and error in the account number. At first I was still believing them but lately I've realized that what they were doing was wrong. Right now, I cannot access my account and they don't answer to my emails.
Author of St Binary: Jade | Date 2019-05-02
You know what? My only question really is why? Why did they have to fool their clients? Why does it have to be me? My lack of experience and knowledge is probably the reason I fell on their trap and let myself be deceived. But reading this article angers me a lot because they don't seem to be repenting on what they did wrong and seemed to enjoy scamming innocent people so much. All I want now is to make all the people behind this fraudulence be responsible and be imprisoned.
Author of St Binary: Jordi | Date 2019-05-09
People like them have no conscience at all! I don't expect them to apologize or anything. I'm not even expecting my money to be returned (though it would be so great if that happens). But for now, all I want is for them to be arrested and jailed to make sure that they won't be able to do such fraudulent scheme again. Because closing down a dubious company doesn't stop the wrongdoings. These people could still make ways to deceive other people. That is why they should be punished properly and legally.
Author of St Binary: Maxel | Date 2019-04-26
Prior to the termination of my account, they rejected my withdrawal requests multiple times. At first they were still trying to convince me not to withdraw anything. They told me that funds should just be going in instead of going out. But then after a few rejections, I realized that it is my right to withdraw my fund because that is my own money. I had an argument with the representative and soon after that, I found out that my account was terminated.
Author of St Binary: Den | Date 2019-04-01
People should really be wary of St. Binary broker. I don't know if they are still operating but I tell you, they have their own way of getting in your head and persuading you to open an account with them. Their voices are stern and you get that feeling that you can't refuse them. This was how they got me to trade with them. They also ordered me to put more deposits in my account and they always told me that I will not profit if I don't. In total, I deposited $3000 and it was all for vain.
Author of St Binary: Emilla | Date 2019-04-16
Hey, same experience here. I admit that I have a bit of an inferiority complex so I easily give in to people when they become very authoritative or firm. Somehow, looking back now, they also talked down on me. Told me that I won't be capable to earn extra income if I don't trade with them. Basically, they are saying that I can find success at their broker. I believed them and opened an account. I also followed when they told me to deposit more funds in my account. In total, I think I have deposited around $7000. I am furious at them while at the same time disappointed in myself that I let a fraud take over my decisions for months.
Author of St Binary: Pooja | Date 2019-03-20
I used to be a trader at St. Binary. They were able to convince me to open an account through a phone call. They first introduced their company to me and it really sounded reputable and trustworthy. They also speak very well which makes it more believable. Then after a while they started persuading me to open an account and they assured me that I will be guided. In one way or another, they were able to convince me and I ended up depositing through my credit card. The problem now is they took funds from my credit card without my permission. I don't know how they did that but when I confronted them, they terminated my account.
Author of St Binary: Yllero | Date 2019-03-28
Woah. That's outright stealing your money! In my case, it was a little indirect but it's theft nonetheless. My platform was manipulated so I often lost my trades. When I've already lost half of my capital, they would contact me and offer assistance. They will guide and help me for a day or two with my trading actions. And during that time, my trades always win. Then they will tell me to replenish my account since I seem to have gotten the hang of it (which I foolishly believed). After depositing again, I would once again lose a lot. This cycle has happened at least twice, and yes, I know I was a fool for falling for it over and over again. But later on, I realized that something is wrong. When I started to ask questions, that's when they suspended my account (which I still can't access until now).
Author of St Binary: Nisha | Date 2019-03-15
I've had a lot of failures in my life already. The most recent one was losing my day job. I was so desperate that I invested a part of my savings to trading because they said I could earn here. I ended up with Binary St. and they got my hopes up with all the things that they told me. That I can rest assured that I will receive returns at the end of the year. They also told me about their successful traders. It was very exciting to me and I was very happy but as months passed by, they started to ask for more deposits. There are times when they become rude and tell me that I wouldn't earn with this kind of attitude. That I should deposit big amounts in order to profit. But I can't shell out any more money. I've already done a few deposits and it probably amounted to $3000. They got mad and closed my account without paying me.
Author of St Binary: Laverne | Date 2019-03-01
Binary St. is one fraudulent broker. Undeniably, they have an excellent platform. In fact, because it runs smoothly, I did not have any trouble opening and closing trades. And they also told me that they provide their active brokers a 3% monthly returns so a bigger capital means higher profit. I was blinded by this and deposited $5000 in addition to my $2000 initial deposit. At first, I am seeing that the 3% increase was really reflected on my balance. But when I tried to withdraw, they kept delaying and rejecting my request. Until I received an email on account termination and I didn't get my fund.
Author of St Binary: Chanda | Date 2019-02-14
St Binary manipulated my trades. Few month into trading, I found my trading style and started to earn valuable profits. More months passed and I've reached 50% profit. I decided to withdraw a part of the profit but it was rejected. Then after that, the movement of the price became unusual. The price drops after I buy and rises after I sell. It happens almost immediately after I open my position. Because of that, I lost all my profit. What's more, there are times when I see open positions that I didn't even make and they are losing ones. In the end, my account balance was zeroed.
Author of St Binary: Zarfol | Date 2019-02-07
Knowing that they were badmouthing us in the middle of talking with us over the phone is very frustrating. I was also a victim. The representatives had an assuring yet strong impression when they talked. It was assuring because they were saying the things I wanted to hear like how I can make money through trading, how they had many clients who had financial troubles but were able to rise up again through trading. They promised returns of investment as long as I listen to their advice. But also it was very strong because they were very persistent in telling me to deposit a big amount and there is something with the way they talk that I couldn't help but follow. It was at least $6000 in total and I'm never getting that back.
Author of St Binary: Anmad | Date 2019-03-06
I also got very upset when I read the article and found out about them badmouthing their clients. I offered my full trust to them because they sounded very confident in their services. And looking back, their words definitely manipulated me. Because I trusted them so much, I believed that all their suggestions were for my sake. My initial deposit was $250 then they asked for more deposit so I can earn more. They did it a couple of times and I deposited a total of $1100. But after getting what they want from me, they started giving me false accusations and they closed my account.
Author of St Binary: Zsuzsanna | Date 2019-01-29
It gets so upsetting when I remember my misfortune of finding Binary St. and investing on it. I almost want to rage whenever I recall how they intentionally rob their clients. I was looking for an extra source of income and Forex trading was recommended to me. I looked for a broker and landed on Binary St. The representatives sounded very professional when I talked with them over the phone so they gained my trust. I deposited $2000. Later on, they asked me to deposit again to increase my winning rate. They explained to me the relationship of the amount of capital and winning rate and for some reason, I was convinced. So I added another $2000. Indeed, I was earning more. After a few months, they asked me to deposit again. But this time, I am fine with how much I'm earning so I refused. Then they started being rude to me and the next thing I know, I no longer have access to my account. I tried to contact them by all means but I couldn't reach them. They should be punished for their wrongdoings.
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