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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: Hani | Date 2021-02-22
I had an account manager when I traded with St. Binary broker. I allowed him to make a few trades for me but I have to be notified before any trading action is made. However, my account manager made a lot of trading activities without my knowledge and all of them were losing trades. I lost more than half of my capital because of that and when I confronted my manager, my account was suspended.
Author of St Binary: Willie | Date 2021-02-08
I was intimidated by the representative of St. Binary. At first, it was a regular call from a company offering their services. But then they started to call me more frequently and they sounded more and more imposing as they call. Thankfully, I did not give in to any of their attempts to convince me to open an account with them.
Author of St Binary: Nafid | Date 2021-02-01
I am no longer taking any calls from any company. I feel like every company that is reaching out to me is only going to do the same thing that St. Binary did. They took my trust and manipulated me to deposit a lot of money on them. They played me and when they can no longer get more money from me, they simply disposed me. I lost a total of $5700 on this horrible broker.
Author of St Binary: Regina | Date 2021-01-26
My friend and I were looking for a Forex broker a few years back. We were contacted by St. Binary broker on the same day and they tried to persuade us to start an investment with them. I was easily swayed by their offers and I was telling my friend that we should try it out. But she was more critical when it comes to investments and she told me that the representatives were somehow forceful. So she did her research first and we found out that this broker is not regulated. With that, we just decided to pass on this broker. Thankfully we did, or else we would have lost our money as well.
Author of St Binary: Joudy | Date 2021-01-21
St Binary broker kept calling me after inquiring to their company a single time. Their representatives called me every week until it became almost every day. Thankfully I did not cave in and I kept ignoring their calls. 'Cause if I did, then I would have lost a fortune as well.
Author of St Binary: Royce | Date 2021-01-11
I was only browsing through some lists of Forex brokers because I am interested in it. Then suddenly, St. Binary contacted me. I don't know how they got my number but they encouraged me to start trading with them and the representative briefed me the benefits of doing so. I opened an an account with them and that was the worst decision I made. I lost more than a thousand dollars on this broker and they even tried to manipulate me.
Author of St Binary: Joseph | Date 2021-01-06
My brother was called by St. Binary broker. This was their main way of attracting clients. They would call and promote their company telling lies and lucrative offers. My brother almost gave in. Thankfully, he consulted me first and I told him that the broker sounded suspicious. He decided not to continue with opening an account and their representative call him endlessly for a few months.
Author of St Binary: Ailene | Date 2021-02-17
I wish I had also asked someone else's opinion too before I decided to trade with this horrible broker. I regret being so impulsive in my decisions. As a consequence, I lost $800 and reading this article just made me mad even more. The employees does not seem to feel any guilt in what they were doing.
Author of St Binary: Prawara | Date 2020-12-29
I was contacted by an employee of St. Binary. It was a harmless call at first. The person on the other end was very calm and he was able to explain their offer clearly. However, on the latter part, he became so aggressive, trying to force me to open an account with them. For some people, this trick might work but I know better and I blocked the number right away. They tried to call me numerous times more using different numbers but I never answered. They are terrifying.
Author of St Binary: Stinx | Date 2020-12-24
True, they mostly got their clients through call. I was one of the victims and I trusted them so easily. I know that I made poor decisions but when I was with them already, they were so intimidating and I felt so powerless. They manipulated me so much that I thought I had no right to close my account and withdraw my funds. This broker had a huge negative impact on me.
Author of St Binary: Reggiefx | Date 2020-12-14
Speaking with the customer support team of St. Binary broker was traumatizing. They were very aggressive and persistent. I remember not being able to do anything but just follow their instructions back then. In total, I deposited $500 and I kept losing my money which turned out to be the result of their manipulation of the rates in the platform.
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