⚠️ A word of caution: Cryptocurrency trading fraud is on the rise, especially on peer-to-peer (P2P) trading platforms. With the explosion of the cryptocurrency market, P2P platforms have become a popular place for users to buy and sell quickly, without the need for middlemen. However, this direct nature also creates loopholes that criminals can exploit. Let’s learn in detail about common scams and how to avoid them.
🚩 Common P2P Fraud Tactics
1. Fake payment confirmation
This is one of the most common scams. The scammer will send you a screenshot or a fake transfer notification, making you believe that you have completed the payment. In reality, the money has never been transferred to your account.
Identification signs:
It urges you to release your cryptocurrency immediately after sending the photo.
The photos lack details or information that does not completely match the actual transaction.
How to avoid it:
Always check your bank account or wallet directly. Never rely on screenshots or notifications from business partners.
If you are using a cryptocurrency wallet, please confirm the transaction through the platform's official transaction history.
2. Overpayment tactics
A scammer may intentionally send you more than the agreed amount, then claim the mistake and ask you to refund the difference. When you issue a refund, they can take advantage of the bank's chargeback mechanism (request a refund) to get the full original amount back. As a result, you'll both lose your refund and your cryptocurrency.
Identification signs:
The other party voluntarily sends more than the amount to be paid without a clear reason.
Please request your refund immediately with urgency.
How to avoid it:
Refunds will not be issued until the transaction is fully confirmed.
If you discover an excessive amount, keep it as is and report it to the trading platform for assistance.
3. Transactions outside escrow
One of the most dangerous tricks is for the scammer to convince you to complete the transaction outside of the platform's escrow system. Escrow is an intermediary service that helps keep both buyers and sellers safe. If you trade outside of escrow, you will have no protection from the platform in the event of a dispute.
Identification signs:
Scammers give the excuse of “saving fees” or “faster transactions” to convince you to skip escrow.
Request a direct transfer or meet to complete the transaction.
How to avoid it:
Absolutely do not trade outside the margin system. This is the main line of defense that protects you from risks.
If the other party refuses to use the escrow, please stop trading immediately.
✅ Effective Prevention Measures
1. Use reputable platforms
Always prioritize trading on platforms that are recognized, reputable, and provide secure escrow services. Some popular platforms include:
Binance P2P
Bitcoins locales
Paxful
These platforms not only offer escrow but also additional security measures such as user identity verification, 24/7 support, and fraud reporting tools.
2. Check payments carefully
Never release your cryptocurrency until you have fully verified and confirmed that the funds have been transferred to your account.
For bank transactions, please contact the bank directly to verify the status of the transaction if in doubt.
3. Keep calm, don't rush
Scammers often pressure, scare or pressure you into making a quick decision. Don't let impatience get the better of you. Take the time to examine every detail of the transaction.
4. Report immediately when you detect signs of fraud
Most reputable trading platforms have a support team that deals with fraud-related issues. When you find unusual signs, please:
Report directly on the platform.
Store all transaction-related information including: messages, receipts, and account information.
🔑 Final reminder:
Protecting your crypto assets requires extreme vigilance and complete knowledge. Don't let subjectivity or lack of information create opportunities for bad actors.
⚡ Share this article with your community to raise awareness and protect security in cryptocurrency trading!
