A binary options scam refers to a fraud perpetrated by websites that provide an opportunity to buy and trade binary options. The fraud relates to the refusal of such websites to credit customer accounts, in addition to identity theft and the manipulation of trading software.
As of 2014, the most common binary options scam involves customers who initially deposit money into their account, only to find out later that their withdrawal requests are being canceled by the trading platform. That way, they end up being locked out of their accounts, the deposited money and the promised returns. Binary options brokers that come from countries that don't have an efficient regulatory system are likely to be fraudulent.