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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: Arock | Date 2021-07-21
Some employees from St. Binary broker called me several times. They kept pestering me and forcing me to open an account with them. I already had no plans on entering the Forex market and this decision just became even stronger when this broker showed this kind of behavior.
Author of St Binary: Sheryl | Date 2021-07-16
I was called repeatedly by the representatives of St. Binary broker. On their first call, I already refused to deal with them but they did not stop calling me. Everyday, I am receiving a call from them and it was both annoying and alarming. Now, I understand the behavior. They were trying to attract clients whom they would rip off money.
Author of St Binary: Isma | Date 2021-07-06
My friends and I opened an account at St. Binary broker at the same time. We had different account managers but we all experienced the same treatment. Our managers were all nice at first but when we don't follow what they want, they would start becoming aggressive and frightening. Good thing, we decided not to give in to all the intimidation that they were doing to us. But we still lost our initial investment.
Author of St Binary: Edwein | Date 2021-06-28
My account manager at St. Binary broker introduced himself as a professional traders. Of course, I was happy because I will be guided by an expert. The first few weeks were great but then when I tried to withdraw the profits, my manager suddenly got mad and he started telling me bad things. My trading activities also started to go downhill until I lost everything.
Author of St Binary: Louther | Date 2021-06-23
Please, the people behind St. Binary broker must be arrested and jailed. These people are heartless. They never cared about how they would damage us not only financially but also emotionally and mentally through their abusive treatment of clients. They made me think that I am an incompetent and incapable trader that's why I lost all my money. When in fact, they just manipulated everything.
Author of St Binary: Jared | Date 2021-06-15
I still hear the voices of the representatives of St. Binary broker. They were very persistent in asking me to deposit more funds. Despite refusing multiple times, they still kept calling me. When I couldn't take it anymore, I decided to just withdraw my money. But they did not process it and they closed my account.
Author of St Binary: Kumala | Date 2021-06-10
The callers from St. Binary Broker are honestly scary. At first they spoke very gently but they get impatient and when they don't get what they want from you, they start becoming aggressive and forceful. It was as if I was speaking with two different people. Because of that, I did not open an account with them anymore and I am so glad that I didn't.
Author of St Binary: Nikita | Date 2021-06-04
Until now, I am still trying to recover from the cruelty of the employees of St. Binary broker. They gaslighted me and tricked me to believe that I am not capable of trading. That I don't have what it takes to become a successful trader. For almost a year, I have only been hearing verbal abuse from their customer support team and because I did not know any better, I just let it happen. I can never forgive them for what they did.
Author of St Binary: Hebai | Date 2021-05-17
The employees of St. Binary were so intimidating. At first, they were kind and really accommodating. But after I agreed to register an account with them and deposit my initial capital, they suddenly became rude. They kept forcing me to add more funds when I clearly said that I could not afford yet. They started calling me incompetent because of that then after a few day, my account was terminated.
Author of St Binary: Keert | Date 2021-05-14
I was foolish enough to believe all the things that the representatives of St. Binary broker said. I had no prior experience in trading so I thought their offers were normal. I only realized that I was being manipulated when they kept refusing to release my money while demanding more deposits. I did not deposit anymore but I was also not able to retrieve my initial deposit.
Author of St Binary: Pankar | Date 2021-05-25
They were very intimidating that is why I also could not blame you for what happened. Nobody wanted to be a victim of fraudulence but because of lack of information, some could not avoid it. This company also tried to make me invest in them but because I already had an experience, I sensed that their ways of reaching potential clients is a bit odd.
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