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Typically, a representative of a binary option website will ask a customer to deposit money into an account where the customer can purchase binary option contracts. Investors either lose all their money or cannot withdraw the balances in their accounts, as withdrawal requests are not honoured.

There is a high chance of losing your entire investment amount, whether you deal with a regulated or unregulated entity. You are always exposed to investment risk, whether a product is regulated or not, said the MAS. Victims who made police reports said they faced difficulties contacting the foreign operators when things went wrong.