P2P trading on Binance is a convenient way to buy and sell cryptocurrency directly with other users. However, alongside the benefits, P2P also carries the risk of fraud. In this article, VNSC will help you understand the forms of P2P Binance scams and how to effectively avoid them.
What causes the risk of fraud in P2P Binance transactions?
Founded in 2017, Binance quickly became the top destination for cryptocurrency investors worldwide, affirming its position as one of the largest cryptocurrency exchanges in the world. At Binance, investors are directly connected through the peer-to-peer trading system, allowing them to exchange, buy, and sell various cryptocurrencies and coins with others around the globe, opening the door to significant profit potential.
Binance provides a platform that allows for flexible and efficient P2P transactions, enhancing users' profit-making opportunities. However, the P2P trading model on Binance also carries risks that can cause financial losses for investors if they are not cautious and wise during the trading process:
In P2P transactions, investors directly transfer and receive money through bank accounts, creating opportunities for fraudsters to deceive, causing investors to potentially lose money or coins.
P2P trading on Binance is based on agreements between individuals, making it difficult to resolve disputes in the event of fraud, with little support from the exchange.
The law does not have specific regulations to protect users in P2P cryptocurrency transactions, and there are no international organizations to guarantee this, leaving investors' rights unprotected in the event of an incident.
Psychological factors and a lack of knowledge about the market are also reasons why investors easily fall into the traps set by bad actors, especially in P2P transactions on Binance.
All common forms of fraud
More and more new investors are joining the cryptocurrency trading market, attracted by the strong development and great potential of this field.
Among the existing exchanges, Binance stands out as a popular choice for quickly and conveniently buying and trading coins. This reflects the trust and preference that users have for Binance due to its superior features and high security.
However, the market is not always safe, especially for new investors; here are the P2P Binance scam forms that you need to pay attention to and prevent carefully.
Impersonating P2P trading pages
In recent years, the establishment of fake Binance websites has become one of the popular P2P Binance scam forms, especially as Binance expands its influence and attracts a large number of new users.
Investors, especially those new to the platform and unfamiliar with Binance, are at high risk of being deceived by these fraudulent websites.
Sophisticated scammers create websites with domain names similar to Binance, changing a few small characters or using different domain endings (.com, .vn, .edu, .net...), details that many investors often overlook. These websites may appear at the top of search results due to advertising campaigns on Google or Facebook, causing many people to mistakenly believe they are the official Binance site.
Fraudsters also approach customers through forums, trading groups, and send fake links, leading them to fraudulent P2P websites. When players log in and conduct transactions on these sites, they are actually transferring money into the fraudster's account, without the protection of Binance and are likely to lose their money entirely.
Impersonating support staff of the P2P exchange
Fraudsters often employ more sophisticated tactics by impersonating support or consulting staff of the P2P exchange, and this is one of the most common scams on Binance today.
As Binance is an internationally renowned exchange, customer service contacts are often overseas, and fraudsters may use international phone numbers, claiming to be Binance staff, to contact users.
They will propose to assist players in P2P transactions or check accounts, and even ask to befriend them on social media platforms like Zalo, Viber... Using persuasive skills and providing misleading information, they make victims trust them and disclose sensitive information such as OTP codes or security codes, resulting in the loss of account and asset control. Afterwards, the victim's money and digital assets may be continuously transferred between accounts, complicating the search for the perpetrator.
Impersonating the automated P2P payment system on Binance
Fraudsters often pretend to be an automated payment system in P2P transactions on Binance, encouraging players to release cryptocurrencies while waiting for payment. However, it is important to note that Binance does not support automated payment methods; if players release cryptocurrencies first, they may lose coins without receiving money.
To avoid this trick, you need to determine whether you are actually trading with the real customer service department of Binance and try to understand the payment methods in P2P transactions. Binance only provides a platform that allows direct trading between individuals without any form of delegation or automated payment.
Using fake payment receipts
Faking payment receipts is a commonly seen scam method in Binance's P2P transactions. During the transaction process, Binance will lock the coin until both parties confirm the transfer and receipt of money. However, some fraudsters have exploited the trust of players to carry out scams.
Example of how to scam using a fake receipt:
The buyer creates a fake money transfer receipt to convince the seller to confirm receipt of the money and complete the transaction, even though the money has not been transferred, causing the seller to lose the coin without receiving the money.
In some cases, the buyer orders coins with a complex amount of money, such as 258,375,823, but actually only transfers 238,375,823, differing by just one digit. If the seller does not check carefully and rushes to confirm, they will suffer losses of tens of millions of dong. Or in another case, the buyer may commit to buy at a price of 258,375,823 but only transfers 25,837,582, resulting in a difference of hundreds of millions.
Fraudsters can also offer to cancel the transaction after the buyer has made the payment, resulting in the buyer losing money without receiving the coin.
Scamming by placing two identical orders on two different accounts
In this scam trick, two accounts A and B simultaneously place identical buy orders for a coin from a seller. A makes a transfer but does not confirm on the app, instead taking a photo of the receipt and sending it to B. Then, B uses that receipt photo to notify the seller that money has been transferred and requests the seller to release the coin. If the seller does not check carefully and unlocks the coin for B, and then A confirms that the money has been transferred, A still has proof of transfer, and the seller will lose the coin without receiving money from B.
To prevent this situation, sellers need to ensure that the account name and transaction information on the order book match the information of the person who actually transferred the money before releasing the coin.
What should you pay attention to when trading P2P?
Most P2P transactions on Binance are international and mutually agreed upon by both parties. Fraud issues often arise due to users' lack of information about how the exchange operates or due to naivety.
To ensure safety when trading P2P and avoid losing money unnecessarily, pay attention to the following points:
Mastering knowledge about the P2P exchange and understanding the regulations and payment methods. Use the official Binance link to avoid being scammed via fake links.
Secure personal information, email, and registered phone number, set all introduction information on the exchange to private mode to prevent exploitation from personal information.
Never provide OTP codes or security codes to anyone, even if requested by customer support staff. Binance does not make calls requesting support information.
Be cautious with international transactions, check information, and follow Binance's principles. Do not confirm the transaction if you have not received the money.
Prioritize trading with reputable P2P merchants, who have good reviews and a clear transaction history on Binance.
Carefully check banking information and confirm that the money has arrived before releasing the coin.
Avoid scanning QR codes or codes from unclear sources, and do not provide personal information on social media platforms. Binance only supports customers through its official website and application.
P2P trading on Binance offers many conveniences but also carries risks if users are not vigilant. Above are all the P2P Binance scam forms that new investors should pay attention to in order to protect their assets. Always follow safety principles, use two-factor verification measures, and never share personal information with anyone, as well as keep updated on new scam methods.