The Scam:
1. Buyer initiates P2P trade on Binance, promising payment to seller's local bank account.
2. Buyer marks transaction as complete, gaining control of seller's USDT.
3. Buyer files fraudulent complaint with bank, claiming payment error.
4. Bank freezes seller's account or reverses transaction.
Consequences:
- Financial loss (USDT and fiat)
- Erosion of trust in P2P community
- Account freezes
- Reputational damage
What's Going Wrong:
- Lack of stringent verification by banks
- Banks acting on assumption of good faith
Protection Measures:
For Sellers:
1. Thorough documentation (screenshots, chats, transaction IDs)
2. Trade with verified users
3. Stay informed about common scam tactics
For Binance:
1. Stronger verification protocols with local banks
2. Improved dispute resolution
3. Education initiatives
Call to Action:
Cooperation between Binance and Pakistani financial institutions is crucial to prevent P2P scams. Stronger regulations, faster dispute resolution, and awareness are essential to safeguarding the P2P community
