Key Points
This P2P paid but canceled scam involves criminals posing as crypto sellers and convincing buyers to cancel orders on the exchange platform after payment has been made, resulting in financial losses for the victims.
Never cancel a P2P order after making payment unless you are absolutely sure that the request is legitimate.
If you have canceled a buy order at the request of your counterparty on Binance P2P, please contact our Live Chat support team immediately to file an appeal if you suspect fraud.
Binanceâs top priority is the safety of our users. A big part of this is making sure youâre aware of the most common types of scams and how to avoid them â because users are ultimately the first and strongest line of defense against crime in the crypto world. Staying up to date on the latest developments in the fight against scammers is the best way to protect yourself and our ecosystem as a whole.
Criminals are constantly inventing new methods to exploit unsuspecting users, including scammers targeting peer-to-peer (P2P) merchants. One tactic that is becoming increasingly popular is the paid-but-canceled scam. Read on to learn more about this scam, how it works, and how to protect yourself.
Understanding Scams Already Paid But Canceled
Paid but canceled scam is a fraud scheme where peer-to-peer crypto sellers convince buyers to cancel orders after the buyer has made payment. This scam can usually be recognized by the following steps.
1. Advertising Offers: The scammer (seller) posts an ad on the P2P marketplace offering to sell cryptocurrencies at a very attractive rate.
2. Initiating Trade: The unsuspecting buyer initiates the trade and transfers the payment to the sellerâs account. At this stage, the fraudster may ask for the buyerâs mobile number, WhatsApp or Telegram contact, or ask the buyer to contact him directly.
3. Convincing the Buyer: After receiving payment, the seller/scammer contacts the buyer and gives a seemingly legitimate reason for canceling the order. The scammer may claim that there was a problem with the transaction or that they had to restart the trade for some reason.
4. Order Cancellation: Due to trusting the seller, the buyer cancels the order on the platform without receiving the crypto or getting his money back.
5. Lost Contact: Once the order is cancelled, the scammer disappears with the buyer's money, leaving the buyer without a solution.
Real Life Examples
Typically, the scammer sends a message to the counterparty claiming there is a payment issue. Then, he asks the buyer to cancel the order or call an external number for help.
Once contacted, the fraudster persuades the buyer to cancel the order.
A slightly different variation of the same scheme is where the crypto seller asks for the buyer's mobile number after payment is made on the grounds that he needs it to verify the order.
Then, the seller asks the buyer to share his contact details.
The seller then contacts the buyer outside the platform and persuades him to cancel the order under false pretenses. In both cases, the result is the same: The buyer who has already paid never gets his money back or the crypto he thought he had purchased.
How to Avoid Being a Victim
Remember that the only way a fraudster can successfully scam you is by convincing you to cancel your order. If the request to cancel the order is legitimate and correct, the seller must refund your money first.
1. Avoid Canceling Orders After Making Payment: Never cancel an order after making payment. Cancel the order after you confirm that the funds have been returned to your account.
2. Stay Alert: Be wary of seller claims, especially if you see an offer that seems impossible. If you feel something is suspicious, proactively report the case to our support team.
3. Keep Conversations on Binance: Conduct all communications regarding P2P transactions within the Binance platform to ensure their integrity. Do not share your contact information with counterparties.
If you have made the payment and notified the seller but the seller did not release the order after confirming receipt of your payment, please file an appeal. Our support team can help release the order for you.
If You Have Been a Victim of Fraud
1. Contact Support: Contact our customer support team to report the issue.
2. Document Everything: Save all communication and transaction data related to the incident.
3. Report: Immediately file a report by following the steps outlined in this guide: How to Report Fraud on Binance Support.
