Trading Spaces
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http://www.i24news.tv/en/news/israe...ions-after-probe-reveals-massive-fraud-report
'Preying on innocent people is an unscrupulous practice', Netanyahu's office says of binary option industry
Israel has called for a worldwide ban on binary options trading after a series of investigative reports by the Times of Israel uncovered massive fraud in the shady industry centered in Israel.
A series of reports by the paper exposed fraudulant practices of the nearly billion-dollar industry, which involves sham investment firms duping unwitting victims into making risky short-term investments, sometimes on rigged trading platforms, with the majority of clients losing their money.
In a statement addressed to the Times of Israel, the office of Prime Minister Benjamin Netanyahu condemned the "unscrupulous" practice, noting that the Israel Securities Authority (ISA) has already outlawed such firms from targeting Israeli citizens.
"Preying on innocent people who are not aware of the risks they are taking is an unscrupulous practice," the statement said, especially in light of the common practice of firms deliberately misrepresenting their trade to clients.
"When somebody goes into a casino, he knows that he is gambling. But all too often, innocent people lose their savings when they are lured into offers to trade in binary options, pitched to them over the telephone, without being informed of the financial risks to which they are being exposed," the statement said, according to the Times of Israel.
Indeed, while the ISA has barred the sale of binary options to Israelis, it hosts a lucrative industry of over 100 binary options firms that target citizens in countries which have yet to ban the practice.
The United States, Canada, and France are among several countries that have opened probes into the pracice on behalf of citizens who have fallen prey to Israel-based binary options fraud, the Times of Israel reported.
The statement to the paper said that while Israeli authorities "have no control over what occurs in other countries," they hoped other nations "will follow in our footsteps and make binary trading illegal."
Head of the ISA, Shmuel Hauser, last week requested authority from the Israel Attorney General to shut down the industry altogether by making it illegal for Israeli firms to solicit clients in any country, the Times of Israel reported, calling the practice "an ugly phenomenon that harms innocent people and unfortunately fans the flames of negative perceptions of Israelis and Jews."
Belgium in August became the first European country to ban the binary options industry, while the US has banned overseas firsm from targeting its citizens.
(Staff with agencies)
'Preying on innocent people is an unscrupulous practice', Netanyahu's office says of binary option industry
Israel has called for a worldwide ban on binary options trading after a series of investigative reports by the Times of Israel uncovered massive fraud in the shady industry centered in Israel.
A series of reports by the paper exposed fraudulant practices of the nearly billion-dollar industry, which involves sham investment firms duping unwitting victims into making risky short-term investments, sometimes on rigged trading platforms, with the majority of clients losing their money.
In a statement addressed to the Times of Israel, the office of Prime Minister Benjamin Netanyahu condemned the "unscrupulous" practice, noting that the Israel Securities Authority (ISA) has already outlawed such firms from targeting Israeli citizens.
"Preying on innocent people who are not aware of the risks they are taking is an unscrupulous practice," the statement said, especially in light of the common practice of firms deliberately misrepresenting their trade to clients.
"When somebody goes into a casino, he knows that he is gambling. But all too often, innocent people lose their savings when they are lured into offers to trade in binary options, pitched to them over the telephone, without being informed of the financial risks to which they are being exposed," the statement said, according to the Times of Israel.
Indeed, while the ISA has barred the sale of binary options to Israelis, it hosts a lucrative industry of over 100 binary options firms that target citizens in countries which have yet to ban the practice.
The United States, Canada, and France are among several countries that have opened probes into the pracice on behalf of citizens who have fallen prey to Israel-based binary options fraud, the Times of Israel reported.
The statement to the paper said that while Israeli authorities "have no control over what occurs in other countries," they hoped other nations "will follow in our footsteps and make binary trading illegal."
Head of the ISA, Shmuel Hauser, last week requested authority from the Israel Attorney General to shut down the industry altogether by making it illegal for Israeli firms to solicit clients in any country, the Times of Israel reported, calling the practice "an ugly phenomenon that harms innocent people and unfortunately fans the flames of negative perceptions of Israelis and Jews."
Belgium in August became the first European country to ban the binary options industry, while the US has banned overseas firsm from targeting its citizens.
(Staff with agencies)
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