Magnum Options Scam infuriated many United Kingdom traders with its slick tactics. Formerly assumed to be a legit and honest broker, magnum options was nothing but a play enacted to steal people’s money. After all, a skilled team of private investigators and attorneys ruled out that the binary options broker was a fake. Know all about the scam with this magnum options review.
We at Financial Fund Recovery serve professionally and discover scams that tricked many innocent traders. We aim to help out the millions of innocent customers ripped off due to criminals like Magnum Options.
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What is Magnum Options?
Magnum Options, an online trading broker, is owned by Solaris Vision Ltd and Hampshire Capital Ventures Ltd.
Magnum Options offered five different account types for other traders; it ranged from mini accounts to platinum accounts. The registration was quite simple, with minimum details required, and you need to deposit to start trading.
Is Magnum Options Legit or a Scam?
Magnum Options is an unregulated offshore broker. Read on to find out magnum options scam or not?
Their competent sales team is how they pulled the scam. The members used an aggressive sales approach to make easy targets over calls and converted them into investors. They promised over 80% returns within a short period. The unsolicited calls were frequent until they came across naive investors. Then, they pitched them with an offer that an investor was unable to refuse.
The promising returns did not ensure a clean chit, and a few misses led to the blunder. The terms and conditions of Magnum Options stated that the investors need to trade 40 times the amount present in their account to be eligible for withdrawals because they do not process small investments. Investors ended up avoiding the warnings and investing and, as a result, lost their wealth. The firm did not carry out any payouts even after repeated attempts.
The firm then got shut down after an investigation after the firm cheated people with over £750,000.
After the investigation into the company, it was forced into liquidation. However, they failed to follow through with the outrageous claims of Magnum Options (up to 81%). Instead, they smartly convinced investors to sign trading bonus agreements that prevent them from ever making withdrawals.
The magnum options scam came through due to the fine print specifying that investors could only withdraw funds once they had traded at 30%-40% of their current account balance. Now, you may think that after these, trading must have been easy on the platform but what happened was the few investors who managed to fulfill the criteria were not able to make any withdrawals.
The UK regulatory authorities accused Solaris Vision Ltd and Hampshire Capital of fraud and posing as investment experts without a license. According to a source, Magnum Options was shut down after an investigation by the Insolvency Service
How Online Trading Scams Work?
Online trading scams primarily rely on displaying exaggerated profitable trades that give investors a false sense of confidence. Their whole masquerade is based on the idea of ‘easy money.’ After establishing trust, the investor is lured to the idea of investing big to earn big. In addition, they also promise incentives that encourage the investor further to invite their friends and family to the con.
Many of these fraud firms even claim to be domiciled in a regulated jurisdiction. To further improve their credibility with unsuspicious investors, they display fake regulatory licenses and addresses on their websites.
Investment scams nowadays often promote themselves online via social media. They put out a perfect deal with high returns, celebrity endorsements (fake), images of luxury items to get them to invest in their scams. These ads lead to seemingly legit websites that appear professional, where investors are further enticed to invest.
In the initial period, the firm provides some returns to give the impression of a successful trade, encouraging them to now invest more. After the broker is convinced that the investor does not have any more funds to extort, they suspend the account, and the investor is now no longer able to access or withdraw the funds put in.
Be vigilant and verify your information through multiple sources. You should apply constant alertness at all times when transacting money online.
How did Magnum Options Scam work?
Magnum Options tried its best and advanced as the finest broker by running fake PR agencies and publishing fake reviews on the site. They promoted their products by paying personnel to give fraudulent consumer reviews through videos with convincing stories.
The narrated stories tugged at the viewers’ emotions as they started with the narrative of a poor person who found out about the Magnum Option and suddenly changed their fate.
These stories tricked many investors into giving their money for a more extraordinary fate.
Magnum Options scam failed to continue its charade due to the revelation of the massive profits through their customer’s fixed-odds betting investments. The scam pulled over £750,000 and even more than that. Hampshire Capital Ventures Limited was listed under them and placed under provisional liquidation, subjecting them to an investigation. The company gave out investment advice with a lack of proper license.
The UK Insolvency Service took care of fraud cases, investigated complaints received between February 2016 and March 2017, and found the scheme fraudulent. But, unfortunately, their deceptive services cost investors a lot of money.
How Do You Save Yourself From Such Scams?
At Financial Fund Recovery, we work remarkably hard to bring out the best-verified data to you. As a result of our endeavors, our team brings you the red flags and all the necessary details.
Don’t Fall For High Returns
As of 2021, no one has developed a trading method that can guarantee over 80%. Binary options are very profitable in the investment world, but it also needs patience, commitment, and determination. Moreover, it is an expensive trading option with many commissions you need to pay to your broker. In such a case, if any broker promises you insane returns, it is indeed a fake one.
More Deposits For Withdrawal
These binary exchanges promise an algorithm that offers hefty returns and zero losses. Thus, the investors are always eager to profit from them. However, getting a withdrawal through is a whole other story. The firm will tell you that you need to invest more because they don’t process small deposits. Since investors are shown constant profits, they fall for such a nuisance. As a result, they deposit the amount only to realize that they don’t initiate the payments. Many customers have spent their life savings by investing in such fraudulent plots.
Checking License Details
A binary exchange firm cannot run without a valid license. Hence, one should always review the license number of a binary firm. Surprisingly, many firms issue fake permits and post them on their website. You can easily verify this as all valid license numbers are publicly available and can be tested.
What To Do If You’ve Lost Your Funds Capital To Magnum Options Scam?
If the magnum options scam has conned you, there is a possibility of you having chargeback rights. But, don’t worry just yet, we can recover your money. We at Financial Fund Recovery believe that no client should end up investing with such a con business. However, we have a commendable record of $19 million recovered funds from scams, and over 90% in case winnings make us the most chosen one.
Reach out to us now and get a free consultation to get your funds back the right way!