Binary Scam Sniffer   Sniffing Out Binary Options Scams
May 17

Do British ADR bodies face with binary options complaints?

by Scam Sniffer

It is not a secret that with the growing popularity and demand for binary options increasing the number of binary options speculations and frauds. Governments of many countries have a very definite position on the binary options industry and fight against binary options frauds.
Everyone knows that binary options industry has defined as betting in the UK. So binary options brokers need to have gambling license to operate legitimately in the United Kingdom.

Binary Scam Sniffer   Sniffing Out Binary Options Scams

In a case of complaints, gambling operator (and binary options operator as well) must try to solve the problem with own complaint procedures. If not, the customer should contact an alternative dispute resolution (ADR) provider.
So how often an ADR faces with complaints of binary options brokers' customers? According to the Independent Betting Adjudication Service (IBAS), a major ADR body for the gambling sector, not so often.

 "I have read a number of stories about binary options fraud, but as yet I haven’t seen any cases relating to it reach IBAS”, Richard Hayler, Managing Director, IBAS. "

Of course, it's worth noting that ADR works only with operators who are licensed by the UK Gambling Commission. So the above information concerns only regulated brokers.

"IBAS, which is one of the 11 ADR bodies approved by the Gambling Commission, will only adjudicate on disputes when:
the operator holds an operating licence from the Gambling Commission and the dispute concerns a wager which is subject to the laws of England and Wales, or Scotland;
the operator is registered, or becomes registered with IBAS, prior to the adjudication of the dispute; and
the Dispute is not the subject of any court action, unless referred to IBAS by the Court."

So what is the reason that despite so many binary options scams, the IBAS has not dealt with them so far? Here's how Mr. Hayler commented this information:

“So perhaps the problem is either:
restricted to the unlicensed or weaker-regulated sectors;
being reported to other agencies instead (e.g., the Police, Trading Standards or the Financial Ombudsman), or
 it is not as great as has been made out.”

This information proves again and resembles the fact that it is worth work only with regulated binary options brokers. Only in this case your trade your money will be protected from fraudulent activities.

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