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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: Darlinda | Date 2020-03-25
No words can explain the degree of my hatred towards St. Binary broker. I have been manipulated and terribly treated as I traded with this broker. My account manager would often put the blame on me whenever I complain about the issues in the platforms. I was always told that I am incompetent that is why I am not earning anything. Instead of encouragement, this broker is further bringing me to my fall. I ended up losing everything and when I refused to replenish my account, they immediately closed it.
Author of St Binary: Masheshwar | Date 2020-03-20
The employees of St. Binary broker are heartless. I could no longer explain what I am feeling right now. It is a mixture of hatred, frustration and regret; but one thing is for sure: I will continue on spreading what I have experienced with this broker because I do not want other people to experience the same devastation I had. I am no longer expecting to get my money back because this broker never seemed to have that intent but I want them to suffer the rightful punishment for them.
Author of St Binary: Nazrul | Date 2020-03-30
Hey buddy, hang in there. I support you in this. We should not stop from disseminating the fact that this broker and everyone involved in their operations are frauds. They took all of our money and even tried to manipulate us into believing that everything is our fault. The people behind this broker should be punished. We never know, they might have started a new company already and are starting to take their deposits as well.
Author of St Binary: Bruce | Date 2020-03-11
I was a trader at St. Binary. It is true that the customer support representatives from this broker are the worst. They manipulate their clients to think that it is our fault that we are losing all our funds. I repeatedly complained about their terrible platform but they blamed it on my device. I already tried using different devices but their platform is really just terrible. On top of that, they make trades without my knowledge. I would only know at the end of the day when I check my history that there are losing trades I did not even make. This broker is the worst.
Author of St Binary: Yankur | Date 2020-03-03
My account manager at St. Binary kept making trades without telling me. He has already made multiple trades which all lost and when I confronted him about it, he only said that he would do better in the future. I told him to ask my permission before making any trade and he got mad at me, saying I don't appreciate his help. But even after that, he still made a few trades and lost my money again. This broker is terrible and it is just right for them to be stopped from operating.
Author of St Binary: Iderlina | Date 2020-02-26
St. Binary was full of lies. The employees of this company are great liars. They were able to make me believe that they are professional financial advisers. They sounded like they knew a lot so I believed them. But I probably just knew less. My account manager even sabotaged my trading activities and made a huge mess on my account. I lost a huge amount because of my manager and they did not even try to apologize. It is just right that this broker be stopped and I hope they get punished properly.
Author of St Binary: Berry | Date 2020-02-20
Years have already passed but it is just impossible to forget about what St. Binary broker did to me. My initial back then was $250 and my account manager was trying to force me to add more fund in my account. The way they talked with their clients was sophisticatedly rude. Back then, I did not realize that they were being rude to me. I only thought that it was their way to motivate me to do better. But now, looking back, I can see that they implicitly stepped over me through their words. They told me I was incompetent just because I refused to deposit money again. This broker is unforgivable.
Author of St Binary: Jamella | Date 2020-02-04
I just really still can't believe that there are people like them who exists. The length of their deception is beyond humane. To be able to do these things, then they must be heartless and with no conscience. How can someone be joyous whenever they become successful in making another person believe their lies? I am fortunate that I never had to experience being their client but I feel very sorry to those who have become victims. The employees of this broker should be put to jail.
Author of St Binary: Innur | Date 2020-01-29
Back in 2015, I opened an account at St. Binary broker. The representative reached out to me and convinced me to start an account with them. The representative was pretty stern and I ended up doing as he said. I opened an account with $250 deposit. I was told that they will help my with my trading activities so they had access in my trading account. However, they made a lot of trading actions without my knowledge and all of them were losing trades. I lost almost a hundred dollars in a few weeks and I complained to them. But when I did, they suspended my account. Since then, I had no access to my account anymore.
Author of St Binary: Daniel | Date 2020-02-11
They are disgusting! To be able to tell lies to another person like it's nothing, then you've got to have lost your conscience. They probably have been doing this for a long time already that their lies have started to sound like the truth. This is the reason many people are still skeptic towards Forex trading. It is very difficult to trust any broker when you know that there are fraud brokers lurking around and waiting to get their new victim.
Author of St Binary: Lourenz | Date 2020-01-20
I probably wouldn't have controlled my emotions if I were on the shoes of the journalist. Hearing how they deliberately deceive their clients is infuriating. It was very unfair. People are working hard to grow their money while people like the ones from St. Binary are earning in a dirty way. I hope they get what they deserve. This is fraudulence and it should not be ignored.
Author of St Binary: Lasantha | Date 2020-01-15
My sister was a former trader at St. Binary. I already warned her about the fraud brokers and consistently reminded her to be cautious in choosing a broker. But I guess no one will really know if a broker is a fraud until they have become a victim already. I can't blame my sister because the broker really appeared to be reliable and my sister said that their representatives sounded trustworthy. It is just really sad that there are people who will really do anything just to take advantage of others.
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