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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.
作者 of St Binary: Aknes | 日期 of  2019-12-03
I already know that St. Binary are full of deceptive people who never cared for their clients. But after reading this article, I felt so mad that this is how much they degrade their clients. They did not only steal our funds, they also mocked us. These people are hopeless. My only wish now is that they get what they really deserve. They must be punished for their fraudulence.
作者 of St Binary: Amanda | 日期 of  2019-11-18
One of the representatives of St. Binary contacted me and persuaded me to start a trading account with them. They told me that I would be guided well and that I will have guaranteed results as long as I follow their trading advise. At first I was really hesitant to take their offer but after a few more calls, I eventually gave in. I deposited $250 and opened an account. I was expecting them to assist me (as they said they would) but they didn't. They weren't even responding to my messages. After two months, my account was closed down without any reason.
作者 of St Binary: Palexa | 日期 of  2019-11-26
This has happened to me as well. Like you, I also lost a huge amount of money because I allowed myself to be fooled. I had four months of trading experience at this broker and the customer support is the worst. Instead of helping, they would rather make you doubt yourself and blame you for your losses. After this incident, I never accepted any call from any companies anymore.
作者 of St Binary: Marliou | 日期 of  2019-11-12
These people are madmen! How can they find joy in the misery of other people? If they are so good at sales, then why don't they use this skill on something legitimate and earn from it? I just really don't understand how other people can dare to deceive other people without feeling guilty at all because that is how the employees of Binary St. seem to be. They target those who are vulnerable and those who can only afford something small. This is all so wrong and I feel bad about the victims.
作者 of St Binary: Delanio | 日期 of  2019-11-05
I traded at this broker for a year and a half. I decided to withdraw a part of my fund only after a year and when I did, they did not allow me. Their reason was the verification of my account which I already did upon opening my account. But I followed through and settled the requirements. I waited for a month and tried requesting for a withdrawal again which was rejected as well. I made a few more attempts and they always had their excuse. Until one day, I just couldn't access my account anymore.
作者 of St Binary: Sander | 日期 of  2019-10-22
I hate St. Binary broker. They ruined a huge part of my life as an adult. This was my first attempt at financial investments and they promised to help me grow my fund and train me to enhance my trading skills. They even told me that I will surely earn well through their company. It was too late when I realized that everything was a lie. I already deposited $2500 and I am sure they are laughing so greatly that they were able to deceive a naive like me. I just hope others won't fall victim to them anymore.
作者 of St Binary: Yeran | 日期 of  2019-10-14
I opened an account at St. Binary last year. I deposited $1000 because the sales representative discouraged me to deposit only the minimum amount required. He said that I would have higher chances of winning if I have larger fund. As a novice, I believed what he said. The first month was calm, I was trading normally until I noticed a huge loss in my account. I found out that the representative was doing trades on my behalf without permission. I confronted them about it and they told me that they are trying to help me. They even told me that I was unappreciative. Now, I completely lost access to my account.
作者 of St Binary: Chernal | 日期 of  2019-10-29
This is what my account manager told me as well. He convinced me to deposit beyond the minimum requirement because a higher fund guarantees higher returns. Since I was new to trading, I believed what he said. Indeed, I saw that the profit rate was high and it seemed like what they said was true. So when my account manager asked me to add more fund, I immediately obliged. However, this time there were only losses. My balance dropped by more than half in only less than a month and it was because of the faulty platform and the trades that my manager opened. In the end, my account was wiped clean and of course, I no longer replenished it.
作者 of St Binary: Pamela | 日期 of  2019-10-09
If you are new to trading and you still lack knowledge, you probably would be easily swayed by the words of St Binary. They have well-speaking representatives who sound firm and certain. Whenever they speak, it sounds like they really know what they're talking about. This is how they earn the trust of their clients. Once the client has already deposited an amount that the broker suggested, they will start becoming persistent. They will repeatedly tell you to add more deposit and if you don't they would take down your account.
作者 of St Binary: Delina | 日期 of  2019-10-01
I can't deny that I was really swayed by the representatives of St Binary. Indeed, this is their primary way of attracting clients and pushing us to keep depositing on our accounts. I just still can't believe that there are people like them who doesn't seem to have conscience at all. After reading what the journalist witnessed inside the office, I feel even more enraged because they feel no remorse. One day, karma will get them.
作者 of St Binary: Nina | 日期 of  2019-09-25
I feel ashamed of myself for ever believing what these fraudsters have been telling me before. I was deliberately being lied to but I still didn't notice anything wrong. They have manipulated me to cash in a few times and I didn't even bat an eye. I guess there is something about the firmness of the representatives that would just make their clients follow whatever they told them. I lost more than a $5000 on this broker-- an amount that is so difficult to earn.
作者 of St Binary: Resta | 日期 of  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.
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