Recently the researchers found too many malware containing apps and the mobile applications that are a potential threat to the users. In return, both the tech giants Google and Apple actively took actions by withdrawing or deleting the apps from the respective application store to ensure the user's safety. But this time the Australian Securities & Investments Commission(ASIC) have found hundreds of fraudulent apps on both the platforms that led both the companies to remove some trading apps.
On Tuesday, the ASIC released a report in which it mentioned about the investigation they did to pull out the fraudulent apps from the App stores. The survey revealed that more than 330 apps were found that are offering so-called binary options trading are unlicensed. These apps are offered by the entities or the individuals to the users and promising a high return.
These binary trading apps offers the user to bet on the share and currencies whether the current value will rise or fall over the time. Initially, the apps were legitimate, but increased number of the apps in quite some time across the U.K. and Australia had led to fraudulent.
In the report, the ASIC also mentioned that 80% of these applications did not mention about the warning in the description instead they have written statements that “appeared to be misleading about the profitability of trading and the amount of profit that could be made” said by the ASIC. One of the apps said that users can earn up to 90% within an hour while another mentioned that the “around 85 per cent profitable signals from the top traders to guarantee the safe trading”. With this tempting statements, the app makers are alluring the users without making them aware of the potential loss.
According to the survey done by The Independent last week almost thousands of the users specifically pensioners are scammed by these apps every year. All the binary options trading platforms currently fall outside the concerned of UK’s financial regulators. This is the major point of concern for the authorities, if a user got scammed by these fraudulent apps then there is little hope that they can get their investment back.
In the survey, it is also revealed that the users are more likely to make money in the demo mode but lost in the actual trading session.
After the investigation, the ASIC immediately contacted to the Google and Apple by providing them the information about these fraudulent apps. As the result of the action both the tech giants removed hundreds of tradings apps from their respective platforms without wasting any time.
Commissioner of the ASIC, Cathie Armour warned the users by saying that “it's an alarm for them to stay away and beware of these flashy advertising apps. Do not fall for the profitable, promising offers without knowing the truth behind it”.
This is not the first time these apps are emerging as a threat, in May 2016 in the London. the National Fraud Intelligence Bureau (NFIB), reported 365 cases of the binary option trading fraudulent. NFIB is a part of the London police, which looks out the fraudulent cases in the city.