P2P (peer-to-peer) trading on platforms like Binance allows users to trade directly with one another, but it also opens the door for potential scammers, especially in regions like Pakistan where the financial systems and regulations around crypto are still evolving. Hereâs how scammers operate and what you can do to break down their schemes and protect yourself:
Common P2P Scams in Pakistan
1. Fake Payment Proof: A scammer may send falsified proof of payment without actually transferring funds. They then press the buyer to release the crypto based on the fake receipt.
2. Third-Party Payments: Some scammers use third-party bank accounts to pay for transactions, which can lead to legal complications, fraud allegations, or frozen accounts. This is common when the scammer uses someone elseâs account to send payment, making it harder to trace.
3. Reversed or Disputed Payments: After receiving crypto, a scammer may try to reverse a payment or initiate a bank dispute, claiming they did not authorize the transaction, leaving the victim without either the money or the crypto.
4. Overpayment Scams: The scammer âoverpaysâ for a trade and requests the excess to be refunded. Once refunded, the original payment gets canceled, leaving the trader at a loss.
How to Break Down and Avoid P2P Scammers:
1. Use Binanceâs In-Platform Chat and Escrow System
Never trade outside the platform: Binance has an escrow system that holds the crypto until both parties confirm the transaction. Always communicate and complete transactions within the Binance platform to ensure the security of your funds.
Avoid third-party communications: Scammers often try to move the conversation to WhatsApp, Telegram, or other platforms to carry out fraudulent activities without being tracked.
2. Verify Payment Method
Use trusted bank accounts: Always confirm that payments are coming from accounts with names that match the verified identity of the person youâre trading with. If someone uses a third-party account, refuse the transaction.
Wait for full clearance: Before releasing the crypto, make sure the payment has fully cleared in your bank account. Some scammers may try to trick you by sending payments that can be reversed or appear as pending.
3. Check Userâs Reputation and Feedback
Look at the userâs rating: Binance allows you to view a trader's completion rate, feedback, and trading volume. Only trade with users who have a high completion rate and positive feedback. Avoid new or low-rated traders for larger transactions.
Be cautious of too-good-to-be-true offers: Scammers often lure victims by offering above-market rates for crypto. If the deal seems too favorable, itâs likely a scam.
4. Avoid Overpayment Traps
Refuse overpayments: If someone âaccidentallyâ overpays, donât send any money back. Request the transaction be canceled and the original payment refunded.
5. Secure Your Identity
Donât share personal details: Never share your personal contact information, identity documents, or bank account details outside the platform. Scammers could use this information for phishing attacks or identity theft.
6. Use Trusted Payment Methods:
Avoid unconventional payment methods: Some scammers may offer to pay via methods not approved by Binance, such as gift cards or third-party wallets. Stick to bank transfers or officially supported methods.
7. Report Suspicious Behavior
Report to Binance and Authorities: If you encounter a scammer, report them immediately to Binanceâs customer support. If the scam involves bank fraud, contact your bank and local authorities to freeze funds or investigate further.
Stay updated on scams: Regularly follow forums and communities where other traders report scam techniques, as these can evolve quickly.
Conclusion!
By using Binanceâs built-in security features, verifying all payments, and being vigilant about suspicious activities, you can significantly reduce the risk of falling victim to P2P scams in Pakistan. Always prioritize safety over convenience and report
any fraudulent behavior promptly to help protect the community.
