📢 Peer-to-peer (P2P) cryptocurrency transactions have gained popularity recently due to their convenience and ease of use. However, it is important to be aware of the potential risks associated with P2P transactions.
We have prepared this guide to provide insights into common P2P fraud schemes in currency transactions.
We will also explore some basic tips to protect yourself from falling victim to these fraudulent activities.
Can anyone scam you using P2P transactions?
Yes, scammers can exploit P2P transactions to defraud unsuspecting victims.
They may use sophisticated methods to manipulate transactions, distort payments, or impersonate reputable platforms or individuals.
By understanding common scams related to P2P cryptocurrency, you can reduce the risks of falling victim to these fraudulent schemes.
How do cryptocurrency P2P scams work?
P2P scams exploit the trust and anonymity inherent in peer-to-peer transactions.
Scammers use various techniques to deceive individuals and trick them into releasing funds or sensitive information.
Understanding these scams and staying vigilant to protect your money and digital assets is crucial.
What are the common scams in the P2P cryptocurrency space, and how can you detect them?
Payment fraud proof
Scammers can digitally manipulate payment screenshots to falsely claim that they have fulfilled their part of the transaction.
They pressure you to release funds or digital assets without verifying the receipt of payment.
Text message scams
Text message scams are a type of payment scam where scammers send text messages to victims that look similar to notifications sent from banks or wallet apps. The messages falsely claim that the victim has received payment from the counterparty.
Here’s how to protect yourself from payment proof scams:
1. Always check your bank account or e-wallet to confirm the receipt of funds before marking the transaction as complete.
2. Be cautious and skeptical if the counterparty insists on releasing funds before confirming the payment has been received.
3. To avoid falling victim to scams via text messages, always verify the receipt of funds by checking your bank account or cryptocurrency wallet directly instead of blindly trusting the content of the text message.
Chargeback-related scams
Scammers initiate chargebacks, withdrawing payments made to their counterparts.
They may use third-party accounts to process payments, making it easier to cancel transactions.
One example of this is when the counterparty offers to pay you by depositing a check.
That’s because requesting refunds from check payments is easy, making it likely a scam.
To avoid chargeback scams:
1. Ensure that the buyer's name in the payment details matches the name they are verified with on the P2P platform.
2. Do not accept payments from third-party accounts, as they pose a greater risk of chargebacks.
3. If someone insists on paying by check, consider that a red flag and file a dispute immediately.
Scams perpetrated by a man in the middle (MitM).
In this scam, the scammer pretends to be a reputable trader on Binance, KuCoin, Bybit, and others, and communicates with victims through external channels, such as Telegram, WhatsApp, or social networking sites.
They provide their bank account details and a link to a P2P ad and ask victims to confirm by copying it into a P2P chat on the order page.
Unintentionally, the victim shares the scammer's bank account details with a buyer who has no connection on the Crypto P2P platform, who also has no idea about the scam.
The victim issues cryptocurrency to an unrelated buyer, who sends their money to the scammer's bank account instead.
Cancelling the transaction or involving the customer service team to resolve the issue is impossible in such cases.
Since the victim communicated with the scammer and obtained details via an external connection outside the Crypto Exchange platform, and the funds were transferred to a third-party account not linked to the Crypto Exchange Merchant, customer support at Crypto Exchange cannot provide a solution.
To protect yourself from scams perpetrated by MitM, you should:
1. Communicate only within the P2P platform and avoid engaging in transactions outside of it.
2. Remind buyers that transfers from third parties violate P2P transaction policies.
3. Carefully verify the bank account details of the counterparty directly on the Crypto Exchange platform.
4. Do not trust offers or information coming from external channels when conducting P2P trades on the Crypto Exchange Platform.
To avoid falling victim to triangular scams while trading P2P, you should:
1. Confirm receipt of all funds from pending P2P transactions before releasing any assets.
2. Be careful about the proof of payment provided by counterparties, as scammers may attempt to reuse it.
Cryptocurrency platform
Scammers impersonate employees of Crypto Exchange platforms to deceive users and steal their money.
They communicate with potential victims through informal emails or social media accounts, request personal information, and initiate fraudulent transactions.
They may ask you to share your email address in a P2P chat window, claiming that the P2P escrow service of the Crypto Exchange platform needs this information to confirm payment. They can then send you a phishing email similar to the official communications of the Crypto Exchange platform and trick you into releasing your cryptocurrency first to receive payment.
To stay safe from scams on Crypto Exchange platforms, do the following:
1. The Crypto Exchange platform will never ask you to complete a P2P transaction via email.
Always release funds only after receiving payment through the P2P platform.
2. Never share personal information or offline contact details in chat.
3. Ensure that payments are made using the specified payment method of the counterparty and that the name on the account matches the name of the verified counterparty on the Crypto Exchange platform.
4. Be cautious of external offers or information coming through unofficial channels.
5. You can check the official verification center of the Crypto Exchange platform to confirm the validity of the relevant channels.
Conclusion
• Although P2P transactions offer convenience, it is essential to be aware of common scams and take necessary precautions to protect yourself.
• By understanding how these scams work and following the provided security tips, you can reduce the risks of falling victim to P2P scams in the cryptocurrency market.
• Be vigilant, be skeptical of offers that seem too good to be true, and always verify transactions and payment receipts before releasing any funds or digital assets.
• By following best practices, such as conducting transactions within the Crypto Exchange platform's chat system, double-checking payment details, and reporting suspicious behavior to customer support, you can reduce the risks of falling victim to P2P cryptocurrency scams and protect your investments.
Finally, we researched and wrote this article so that everyone can benefit.
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