Peer-to-peer (P2P) cryptocurrency trading allows users to buy and sell cryptocurrencies directly with each other without the need for an intermediary. While this can be convenient and often cost-effective, it also opens the door to many different types of fraud. Here are some common P2P cryptocurrency scams and tips on how to avoid them:
Popular P2P cryptocurrency scams
Fake payment proof
Fraud: The scammer sends a fake payment confirmation to the seller, claiming that they have made the payment. Tip to avoid: Always verify the transaction through your bank or payment platform before releasing cryptocurrency. Don't rely solely on screenshots or emails provided by the buyer.
Chargeback fraud
Fraud: Once the cryptocurrency is received, the fraudster initiates a chargeback against their payment method, reversing the payment. Tip to avoid: Use payment methods that are less susceptible to chargebacks, such as bank transfers or crypto-to-crypto trading. If using a platform like PayPal, make sure the buyer has a verified account and a good transaction history.
Fraud and impersonation
Phishing: Scammers create fake websites or profiles that look like legitimate P2P platforms or trustworthy individuals to trick users into depositing their cryptocurrencies. Prevention tip: Verify the website URL and the identity of the person you are dealing with. Use an official P2P platform and double-check contact information from multiple sources.
Fake escrow service
Scams: Scammers set up fake escrow services that appear legitimate but once the cryptocurrency is sent to escrow, it is never released to the buyer. Tip to avoid: Use reputable P2P platforms that offer their own escrow services. Verify escrow services through community reviews and trusted sources.
