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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: Merel | Date 2020-11-16
I can't imagine how toxic the headquarters of St. Binary is. If I was one of their employees, I would definitely not be able to stand that kind of system. I don't know how other people are able to deceive their fellow people without even flinching. It doesn't seem to me like they have any conscience. I feel sorry for the victims, but I also feel sorry for this kind of employees. Their life must have been so sad that they get pleasure from the suffering of other people.
Author of St Binary: Shioru | Date 2020-11-12
If you ever experienced speaking with the representatives of St. Binary broker, I hope that you are doing well now. They are very manipulative and they can make you feel so worthless and incompetent. All of the issues in their platforms would be blamed into the client. It would always be our fault that our trading activities are not going well when in fact their platform never worked properly.
Author of St Binary: Lasmy | Date 2020-11-03
When I opened an account at St. Binary, I deposited $250. After just a day of trading, my account manager started to encourage me to deposit again. I said that I'll see how I do first before I deposit again but he did not stop bugging me. It was almost everyday that he kept reminding me to deposit more. After a while, I just ignored his messages then he started getting mad and threatening me that I will soon lose all my money. I was not even able to do anything. My account was just suddenly terminated.
Author of St Binary: Alya | Date 2020-11-24
They are just so persistent, aren't they? This happened to me too. My account manager kept asking me to deposit again when I haven't even made any trade yet. I did not even know if I would do well in my trading activities and they already wanted me to deposit again. Thankfully, I did not give in to his words, but sadly, I still lost money.
Author of St Binary: Oudom | Date 2020-10-26
The owners and employees of St. Binary are all heartless. I can't believe I blindly let them manipulate me. All the losses that I incurred, the broker made me believe that it was only due to me incompetence. I invested all that I have on this broker and I only ended up losing everything.
Author of St Binary: Milella | Date 2020-10-21
All I want now is just to move on from my horrible experience with Binary St. I wish I just never encountered them at all. Not only they rob me off my money, they also took away my confidence. They were very manipulative and they made me believe that I was simply a terrible trader that I why I incurred so much losses. When the truth is the charts displayed in our platforms are not correct at all. The owners of this company are all terrible people and I hope they get what they deserve.
Author of St Binary: Floriane | Date 2020-10-05
When I traded with Binary St., I had high hopes. It was early 2016 when I opened my account and by the end of the third quarter of the year, I decided to withdraw my profit. My withdrawal request was never processed and I sent them a lot of emails to follow up on it. Until the day came when I can no longer log in to my account because apparently, the username or password was changed and I couldn't recover it.
Author of St Binary: Shivani | Date 2020-09-28
I funded my trading account at St. Binary through my bank card. It was a direct transfer and it was relatively more efficient. However, I regret ever linking my bank card to this horrible broker because my account manager has been taking funds from my card without my permission. What's worse is that the money taken was not even reflected in my trading account. The people behind this broker are nothing but thieves.
Author of St Binary: Cintia | Date 2020-10-13
That is the worst! How can they even do that? That is outright stealing. I am still fortunate that I never made any business with fraud companies but I admit that many have contacted me as well. The main reason I reject them is that they were too annoying. I did not think of it as a scheme before. Luckily, I did not take them into consideration.
Author of St Binary: Gustavo | Date 2020-09-22
I traded with St. Binary for almost a year. All throughout my experience, I have only been stressed. None of my trades are executed properly and it was very hard to make a decent trade because of their terrible platform. I can't close my account because the company won't release my money. And I was threatened that I will be sued because I violated the terms and conditions which I honestly don't understand. Because they are not saying which one I violated. In the end, they were exposed and they ran away with our money.
Author of St Binary: Tannu | Date 2020-09-16
Having to trade with St. Binary was a torture. I did not know at first what I was getting into. All I knew back then was that I was given an opportunity to earn money. But then after depositing my money and starting my trades, that is when I realized that I made the wrong decision. This broker started to pester me to deposit more funds and they have been telling me that I will not progress if I don't. I kept saying no to them because I done have any more money to invest. Then in the end, they just terminated my account.
Author of St Binary: Raphael | Date 2020-09-08
I was a victim of St. Binary broker. The employees in this company are heartless. They manipulated me all throughout my trading experience with them. Whenever I would send a complaint, they would always put the blame on me. They would say things like a problem in my internet connection, my device is outdated, or I just simply lack skills to earn. And for a while, that is what I kept believing in. But then when I tried a different broker, I did not have any issue in my trades. I confronted them about it and they terminated my account.
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