Royal Canadian Mounted Police voices concerns about binary options scams

Maria Nikolova

Last year, there were 8,317 cases of fraud reported in Alberta RCMP jurisdictions from January to October.

Binary options fraud has been so omnipresent lately that police forces in a number of jurisdictions have added their voices to the chorus of concerns about this type of scams. Following warnings from the police in Singapore and the UK, the Royal Canadian Mounted Police (RCMP) has also noted the rise in binary options fraud cases.

In an announcement published on Monday, the Alberta RCMP says that last year, there were 8,317 cases of fraud reported in Alberta RCMP jurisdictions from January to October, with binary options scam reports being on the rise lately. According to the Alberta Securities Commission (ASC), Albertans who are defrauded by binary options scams suffer an average loss of more than $20,000.

Alberta saw a horrid case related to binary options fraud late last year, as 61-year old Fred Turbide of Edmonton committed a suicide in December 2016, following the loss of a heavy sum of money due to using the services of binary options platform

The RCMP warning was issued on the day when the consultation on prohibition of binary options offering, advertising and selling closed in Alberta and Quebec. The aim of the proposed ban is to protect investors from becoming a victim of binary options fraud.

Whereas investors bear the brunt of binary options fraud, the industry seem to be reluctant to support a ban on binary options altogether. That was indicated by the responses received by Quebec’s financial regulator AMF to a proposal to ban binary options. For instance, the Investment Industry Association of Canada (IIAC), which represents 132 brokerage firms regulated by the Investment Industry Regulatory Organization of Canada (IIROC), has insisted that binary options are not the problem, per se, whereas fraudulent and unregulated businesses offering binary options are. IIAC proposed that instead of banning binary options, Quebec should allow IIROC regulated brokerage firms to offer binary options to investors.

The responses to the consultation on the proposed binary options ban in Alberta are yet to be known. In the meantime, the Alberta RCMP reminds investors that there are no registered binary options dealers in Alberta.

Read this next

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.


Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.

Digital Assets

Thailand closer to launch digital asset exchange “to serve the needs of younger generations”

TDX is a subsidiary of the Stock Exchange of Thailand (SET) and its incorporation is part of the group’s strategic position to connect capital markets, open opportunities for the business sector in raising funds and cater to investment demand of new generations.

Digital Assets

Russia to legalize cryptocurrency payments as sanctions bite

Russia could soon be the latest country to lay down ground rules for legalizing cryptocurrencies as a means of payment, a sign that governments around the world are realizing that digital assets are here to stay.

Institutional FX

XTX Markets UK reports lackluster results for 2021

The UK business of XTX Markets, a non-bank FX liquidity provider and market maker, has reported its financials for the fiscal year ending December 31, 2021. The report showed impressive metrics after seeing revenues and customer activity increase even as the pandemic trading boom fizzled out.

Digital Assets

Binance in talks with BaFin to get license in Germany

Changpeng Zhao (CZ), founder and CEO of Binance has confirmed that they are in talks with Germany’s regulators to secure a local crypto license.