Read the white paper titled: Binary options and Fraud from the U.S. Securities and Exchange Commission (SEC). The SEC is a government agency responsible for enforcing federal securities laws and regulating securities markets in the United States. Its primary mission is to protect investors, maintain fair and orderly markets, and facilitate capital formation; and answer the following questions:

1) What are some of the potential risks associated with binary options trading, according to the SEC and CFTC? 2) How do some fraudulent binary options trading platforms operate, and what are some of the red flags that investors should watch out for?