Saskatchewan's Financial and Consumer Affairs Authority (FCAA) on Thursday issued a warning a possible "recovery room" scam targeting victims of unregistered binary options schemes.
The FCAA alleges that Loyalty Insurance Group (LIS) is contacting people that invested with Titan Trade or Banc de Binary, two unregistered binary options firms.
"The company identifying itself as Loyalty Insurance Group may be contacting investors and telling them that LIS specializes in helping people get their money back after being scammed by binary options companies," the FCAA says in its warning.
According to the FCAA, LIS is telling investors that they may be entitled to settlement funds from a class action suit in the United States against the binary options firms. LIS then asks for information, and money, from investors in order to receive a share of the purported settlement.
The FCAA says that LIS is not licensed as a collection agent in the province, nor is it licensed to do insurance business. And, it "strongly cautions investors and consumers" to not send money to unlicensed, offshore companies.