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P2P payment and cancellation scams involve criminals posing as cryptocurrency sellers and convincing buyers to cancel their order on the exchange platform after payment, resulting in significant financial losses for the victim.
Never cancel a P2P order after a payment has been made unless you are sure that the request is justified.
If you have cancelled a buy order at the request of your counterparty on the Binance P2P platform and suspect fraud, please immediately file an appeal in our support chat.
At Binance, our top priority is the safety of our users. An important part of that is educating you about the most common scams and how to avoid them, because ultimately, users themselves are the first and strongest line of defense against criminals in the crypto space. The best way to protect yourself and the entire ecosystem is to stay up-to-date with anti-scam news.
Criminals are constantly inventing new ways to attack unsuspecting users, including those involved in peer-to-peer (P2P) transactions. One such ploy that is gaining popularity is the so-called payment and cancellation scam. Read on to learn more about this scam, how it works, and how to protect yourself from it.
About payment and cancellation fraud
In payment and cancellation scams, cryptocurrency sellers on peer-to-peer trading platforms convince buyers to cancel their order after the payment has been made. Typically, the scam involves the following steps:
1. Posting an offer. The scammer (seller) posts an ad on a P2P platform, offering to sell cryptocurrency at a very favorable rate.
2. Start of the transaction. The unsuspecting buyer initiates the transaction and transfers money to the seller's account. At this stage, the fraudster may ask the buyer for their phone number, WhatsApp or Telegram contact information, or ask the buyer to contact them.
3. Convincing the Buyer: After receiving the payment, the fraudulent seller contacts the buyer and provides them with a seemingly valid reason to cancel the order. The fraudster may claim that there was an error in the transaction or that they need to re-initiate the trade for some reason.
4. Order cancellation. Having trusted the seller, the buyer cancels the order on the platform without receiving the cryptocurrency and without getting his money back.
5. Disappearance. After the order is cancelled, the fraudster disappears with the buyer's money, leaving him no opportunity to seek help.
Examples from life
Quite often, a fraudster sends a message to their counterparty, in which they talk about problems with payment and ask the buyer to cancel the order or contact an external number for help.
When the buyer contacts him, the scammer convinces him to cancel the order.
In a modified version of the same scheme, the cryptocurrency seller asks the buyer for a phone number after payment, claiming that he needs it to confirm the order.
The seller then asks the buyer for his contact information.
Then he contacts the buyer offline, convincing them to cancel the order under false pretenses. In both cases, the result is the same: the buyer, who has already made the payment, will never see their money or the cryptocurrency they were going to buy again.
How to avoid becoming a victim?
Remember that the only way a scammer can succeed is to convince you to cancel the order. If they are asking you to cancel for a valid reason, they must first refund your payment.
1. Avoid canceling orders after payment. Never cancel an order after making a payment until you are sure that the funds have been returned to your account.
2. Be vigilant. Be critical of sellers' statements, especially if their offers are suspiciously advantageous. If you have any suspicions, report them to our support service in advance.
3. Communicate only on Binance. Always discuss all matters related to P2P transactions only on the Binance platform to ensure the integrity of your correspondence. Do not share your contact information with counterparties.
If you have made a payment and notified the seller, but he has not transferred the cryptocurrency, confirming the receipt of your payment, file an appeal. Our support team will help you get the cryptocurrency for this order.
If you have become a victim of fraudsters
1. Contact support. Report the problem to support.
2. Document everything. Keep a record of all communications and transactions related to the incident.
3. Report the issue to us. Immediately report the incident to us as per the instructions in the article How to report fraud to Binance support?