News
Police and City Trading Standards day of action after victims report losing over £59m to Binary Options fraud
Posted 19/10/17
鈥⑻�2,065 people have reported being a victim of Binary Options fraud to Action Fraud since 2012.
鈥⑻齎ictims have reported to have lost 拢59,424,178.听
鈥⑻齌he average person loses 拢22,811.听
鈥⑻齈olice and Trading Standards visited offices in the City to speak with businesses to help build an intelligence picture around Binary Options and other types of investment fraud.
Growing Problem
听reports show that Binary Options fraud is a growing problem. In just the first half of 2017, 697 people reported to have lost over 拢18 million. The day of action used听tactics, mostly visiting businesses occupying serviced offices and reviewing their compliance documents.听
The City of London Police conducted a day of action and visited 20 offices with the, on Tuesday (17 October 2017).听
Assisted by the听and the听听they were able to help gather intelligence on different types of investment fraud and in particular听fraud.听
The day brought some interesting results with one team discovering a business that had paid over three month鈥檚 rent upfront to the serviced office provider and then had disappeared. Work will now take place to establish information about this company and investigate whether it was possibly a boiler room.听听
Operation Broadway听
In 2014 the City of London Police, City of London Corporation Trading Standards, Metropolitan Police, National Trading Standards 鈥楽cambusters鈥� Team, HMRC and the FCA, launched Operation Broadway, a London-wide intelligence-led drive to uncover and disrupt suspected 鈥榖oiler room鈥� investment frauds operating out of some of the capital鈥檚 most iconic buildings in the heart of the UK's main financial districts.听
Operation Broadway teams have conducted inspections and disruption raids at over 100 offices in the City and Canary Wharf since its launch. Police and Trading Standards staff believe this has created a hostile environment for fraudsters.
Over the next six months an intelligence picture will be developed using the information gathered from the day of action to ensure that investment fraudsters are prevented from operating in the City of London.听听
With an average loss of over 拢22,000 those who fall victim to Binary Options fraud are significantly affected. It is important that all victims report to Action Fraud to ensure that the extent of the problem can be fully understood and action can be taken to tackle it.听
Over the next week, the City of London Police with its partners will be raising awareness of investment fraud through its social media channels using the hashtag #BeatTheBoilerRooms.
City of London Police鈥檚 Chief Superintendent Glenn Maleary, Head of the Economic Crime Directorate, said:听
鈥淭his multi-agency operation, allowed us听to听speak with multiple businesses and gather significant intelligence around various investments currently being traded in the City.听
鈥淲ith our partners we want to ensure the City is a hostile environment for fraudsters to operate in and we will continue to do everything we can to ensure that this is the case.
鈥淭hroughout this year we have been raising awareness of Binary Options fraud and over the coming days we will be providing more advice on how people can beat the boiler rooms and protect themselves from all types of investment fraud.鈥�听
Steve Playle, Trading Standards Manager for the City of London Corporation, said:
听
鈥淭rading Standards is a key player in the clampdown on fraudsters. Working closely with our partners, we are deterring investment scammers who use City addresses to create an illusion of respectability that plays an important part in persuading people to part with their money.
听
鈥淭his day of action is raising public awareness so that we can all do our bit and report those that we think are involved in this miserable practice.鈥�
