P2P trading on Binance is a convenient way to buy and sell cryptocurrency directly with other users. However, alongside the benefits, P2P also poses a risk of fraud. In this article, VNSC will help you understand the types of P2P Binance scams and how to effectively prevent them.
What causes the risks of fraud in Binance P2P transactions?
Founded in 2017, Binance quickly became a 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 to each other through the peer-to-peer trading system, allowing them to exchange, buy, and sell a variety of cryptocurrencies and coins with others around the world, opening up significant profit potential.
Binance provides a platform that allows flexible and effective P2P transactions, enhancing users' opportunities to profit. However, the P2P trading model on Binance also carries risks that could cause financial losses for investors if they are not careful and wise during the trading process.
In P2P transactions, investors directly transfer and receive money through bank accounts, creating opportunities for scammers to deceive, causing investors to lose money or coins.
P2P trading on Binance is based on agreements between two individuals, making it difficult to resolve disputes when scams occur, with little support from the exchange.
The law still lacks specific regulations to protect users in P2P cryptocurrency transactions, and there is no international organization to ensure this, leaving investors' rights unprotected in case of incidents.
Psychological factors and lack of understanding of the market also contribute to investors easily falling into the scam traps of bad actors, especially in P2P transactions on Binance.
All common types of scams
More and more new investors are entering 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 exchanging coins. This reflects the trust and preference that users have for Binance due to its superior features and high safety.
However, the market is not always safe, especially for new investors. Below are the types of P2P Binance scams that you need to pay attention to and prevent thoroughly.
Impersonating the P2P trading site
In recent years, creating fake Binance websites has become one of the popular P2P Binance scams, especially as Binance expands its influence and attracts a large number of new registered users.
Investors, especially those new to Binance and not well-versed in its operations, are at high risk of being deceived by these fake 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 can appear at the top of search results due to advertising campaigns on Google or Facebook, leading many to mistakenly believe they are the official Binance site.
Scammers may 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 websites, they are actually transferring money into the scammer's account, without the protection of Binance, and are likely to lose their money.
Impersonating support staff of the P2P exchange
Scammers often employ more sophisticated tactics by impersonating support or advisory staff from P2P exchanges, and this is one of the most common scams on Binance today.
With Binance being an internationally recognized exchange, customer service contacts are often located abroad, and scammers may use international phone numbers, posing as Binance employees, to contact users.
They will offer to assist players in P2P transactions or check accounts and even request 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, leading to a loss of control over their accounts and assets. Subsequently, the victim's money and electronic assets may be continuously transferred between accounts, complicating the process of tracking the perpetrators.
Impersonating the automatic payment system in P2P on Binance
Scammers often pretend to be the automatic payment system in P2P transactions on Binance, encouraging players to release cryptocurrency to wait for payment. However, it is important to note that Binance does not support automatic payment methods; if players release cryptocurrency early, they may lose coins without receiving any 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 how payment works in P2P transactions. Binance only provides a platform that allows direct trading between individuals without any form of trust or automatic payment.
Using fake payment receipts
Fake payment receipts are a common method of fraud in Binance P2P transactions. During the transaction process, Binance will lock coins until both parties confirm the transfer and receipt of money. However, some scammers have exploited players' trust to carry out fraud.
Example of how to scam with fake receipts:
The buyer creates a fake money transfer receipt to convince the seller to confirm that they have received the money and end the transaction, even though the money has not been transferred, causing the seller to lose coins without receiving any money.
In some cases, the buyer orders coins with a complex amount, such as 258,375,823, but actually only transfers 238,375,823, just a single digit difference. If the seller does not check carefully and rushes to confirm, they will suffer a loss of tens of millions. Or in another case, the buyer may commit to buying at 258,375,823 but only transfers 25,837,582, causing the difference in amounts to reach hundreds of millions.
Scammers may also propose to cancel the transaction after the buyer has paid, resulting in the buyer losing money without receiving any coins.
Scamming by placing 2 identical orders on 2 different accounts
In this scam trick, two accounts A and B simultaneously place an identical buy order from a seller. A makes a transfer but does not confirm it on the app, instead taking a photo of the receipt and sending it to B. Later, B uses that receipt photo to inform the seller that they have transferred the money and requests the seller to release the coins. If the seller does not check carefully and unlocks the coins for B, after that A confirms that they have transferred the money, A still has proof of the transfer and the seller will lose the coins without receiving any 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 has actually transferred the money before releasing the coins.
What should be noted when trading P2P?
Most P2P transactions on Binance are international and self-negotiated between both parties. Fraud issues often arise due to users lacking 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:
Master the knowledge of the P2P exchange and understand the regulations and payment methods. Use the official link of Binance to avoid being scammed through fake links.
Secure personal information, email, and registered phone number, set all referral 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 service staff. Binance does not call to request support information.
Be cautious with international transactions, verify information, and comply with Binance's principles. Do not confirm transactions if you have not received the money.
Prioritize trading with reputable P2P merchants who have good reviews and a clear trading history on Binance.
Carefully check bank information and confirm that the money has arrived before releasing the coins.
Avoid scanning QR codes or codes from unknown sources, 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. The above are all types of P2P Binance scams that new investors should be aware of to protect their assets. Always adhere to safety principles, use two-factor verification measures, and never share personal information with anyone, as well as keep updated on new scam methods.