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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: Resta | Date 2019-09-12
I am deeply disgusted with the people working at St. Binary after reading this article. They truly enjoy deceiving people, don't they? I am lucky to not have been involved with this broker but I feel sorry for the many traders who had hope in their new journey but were only scammed. This company should be punished accordingly. I'm pretty sure retrieving the funds of the clients is unlikely but they should at least be held accountable on what they did.
Author of St Binary: Ikai | Date 2019-09-06
The representatives from St. Binary are good talkers. They were definitely effective persuaders that they swayed me to open an account with them even when I don't have any plan on entering the Forex market. I was told that I will be closely guided and that I didn't have to worry if I lack knowledge because they can also help me in my trading activities. I deposited $250 dollars because they said that it was the ideal capital. However, I was never assisted on any of my trading activities and the platform was so unstable I wasn't able to make good trades. In the end, I lost everything.
Author of St Binary: Aldos | Date 2019-08-28
I was greatly devastated because of my horrible experience at Binary St. This is a memory so terrible that I want to bury it yet so grave to be easily forgotten. I lost more than $4000 on this broker and they never even made an effort to pretend like they care about their clients. This experience is terrible but I try to just look at the bright side and think that this experience at least gave me a new lesson.
Author of St Binary: Panra | Date 2019-09-17
The people from this broker are actually very manipulative. As someone who has inferiority complex, the firmness on the way they speak made me do what they tell me to. Looking back, they were not very polite and friendly. Rather, whenever they talked to me, I felt like I was being ordered. But it was effective because I did just as they say. In the end, I deposited a total of $3700 but nothing was returned to me.
Author of St Binary: Icai | Date 2019-08-20
My initial investment at St Binary was $250. At first they told me that this amount was enough to open an account and start trading. After only a few days of opening my account, the broker contacted me to deposit more funds. They told me that it will be helpful to have a higher balance to produce more returns. I believed them the first time and added another $250. However, after a few days, they tried to convince me again. This time, I no longer have extra money so I firmly refused. This is when they started to be rude. They told me I wouldn't grow in this industry because of my attitude. My platform also started to malfunction constantly until my account was wiped clean.
Author of St Binary: Telsa | Date 2019-08-16
I lost $2500 at St. Binary broker. In the first two months, I didn't encounter much problems. I was doing my trades normally, earning quite decently. Because of that, I was easily convinced to add more deposits. After adding some fund, the platform suddenly changed its performance. It lagged a lot, there were delays and slippages, and orders were not executed properly. This resulted to losing half of my fund. When I asked for the withdrawal of the remaining, my account was terminated.
Author of St Binary: Jamisca | Date 2019-08-06
I can testify that they do make trades without our permission. I've noticed it quite a number of times already that there were trading activities I don't remember doing. When I confronted them about it, they told me that I have not been actively trading for a while so opened trades to keep my account running. I told them to at least notify me if they are going to do that. But they still didn't. What's worse is that all of the trades they opened lost.
Author of St Binary: Idomer | Date 2019-07-29
These people are the worst. They are consciously deceiving people and taking their money. This is the very reason I don't trust the Forex market or any online investments at all. I have been reading negative experiences and it just scares me to trust any company. After reading this article, I don't think I will ever have the courage to try this industry anymore.
Author of St Binary: Oseril | Date 2019-07-22
Ever since I started trading at St. Binary, my losses never went below 15 pips. No matter how good the trend is and how certain I am that I could win the trade, as soon as I open a position, the price movement would suddenly change direction. I thought back then that I was really just unlucky but as it turns out, the broker cheats and manipulates the platform to keep us from winning and so we would add more fund on our accounts.
Author of St Binary: Reaza | Date 2019-07-16
Binary St. rejected my withdrawals multiple times. And never processed it all in all. They made a lot of excuses, verification, error in the details, problem with the payment method, all kinds of excuses. Then when I became insistent, they terminated my account immediately. I never saw my account again after that.
Author of St Binary: Arten | Date 2019-07-08
I may have forgiven what St. Binary did to me, but I will never forget. I guess I'm too kind for forgiving them even when they didn't even apologize nor admit their crime. I just don't want to keep hating. But as I said, this incident will never be forgotten. I will remember their voices and I will make sure to keep this incident as a reminder not to trust other people so easily regardless of how believable they seem to be. Great criminals truly hide in the image of a decent man.
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