Highlights
In P2P order-cancelled-after-payment scams, criminals posing as cryptocurrency sellers convince buyers to cancel their order on the exchange platform after making the payment, leading to significant financial losses.
Never cancel a P2P order after making a payment unless you are absolutely sure of the legitimacy of the request.
If you have cancelled your purchase order at the request of the counterparty on Binance P2P, please immediately file an appeal to our customer support team via live chat if you suspect fraud.
Binance’s top priority is the safety of our users. A big part of that is making sure you’re aware of the most common scams and how to avoid them – after all, it’s the users themselves who are the first and strongest line of defense against crime in the cryptocurrency space. Staying up to date with the latest developments in the fight against scammers is the best way to protect yourself and the ecosystem at large.
Criminals are constantly coming up with new ways to exploit unsuspecting users, including peer-to-peer (P2P) merchants. One such tactic that has been gaining ground is the so-called processed payment and cancelled order scam. Read on to learn more about this deceptive practice, how it works, and how to protect yourself from it.
Understanding the Scam of Orders Cancelled After Paid
This is a fraudulent scheme where peer-to-peer cryptocurrency sellers convince buyers to cancel the order after buyers have made payment. It usually unfolds in the following steps.
1. Advertise the offer: The scammer (seller) posts an ad on a P2P marketplace offering to sell cryptocurrencies at a very attractive exchange rate.
2. Initiate the transaction: An unsuspecting buyer initiates the transaction and transfers payment to the seller's account. At this point, the scammer may ask the buyer for their phone number, WhatsApp or Telegram contact, or ask them to contact them.
3. Convincing the buyer: After receiving payment, the scammer-seller contacts the buyer and provides a seemingly legitimate reason for cancelling the order. The scammer may claim that an error occurred in the transaction or that he needs to restart the transaction for some reason.
4. Order cancellation: Trusting the seller, the buyer cancels the order on the platform without receiving the cryptocurrencies or getting their money back.
5. Disappearing Act: Once the order is cancelled, the scammer disappears with the buyer's money, leaving them with no recourse.
Real life examples
A common situation is for scammers to send messages to their counterparties claiming payment issues and asking buyers to cancel their orders or contact an external number for assistance.
Once contacted, they persuade buyers to cancel the order.
A slightly different variation of the same scheme is for cryptocurrency sellers to ask for buyers' phone numbers after payment, claiming they need them to verify the order.
Sellers then ask buyers to share their contact information.
They contact buyers outside the platform and convince them to cancel the order under false pretenses. In both cases, the result is the same: buyers who have already made the payment never see their money or the cryptocurrencies they thought they were buying again.
How to avoid becoming a victim
Remember that the only way for criminals to complete the scam is by persuading you to cancel the order. If their request to cancel the order is legitimate and justified, they will first need to return your payment.
1. Avoid cancelling orders after making a payment: Never cancel an order after making a payment until you have confirmed that the refund has been credited back to your account.
2. Stay alert: Be wary of seller claims, especially if you see offers that are too good to be true. If you spot anything suspicious, proactively report the case to our support team.
3. Keep communication within the Binance platform: Always keep all communications related to P2P transactions within the Binance platform to ensure integrity. Do not share your contact information with counterparties.
If you have made payment and notified the seller, but they do not release the order after confirming they received your payment, please file an appeal. Our support team can help release the order for you.
If you have already been a victim of fraud
1. Contact Support: Let our customer support team know your issue.
2. Document everything: Keep a record of all communications and transactions related to the incident.
Please file a report immediately by following the steps mentioned in this guide: How to report scams to Binance Support.
