I did a P2P transaction with "Coingraam" due to difficulty getting GBP off Binance. With a goodish rating, over 1400 trades and several years of activity and verified, I assumed it would be ok. A few days later I received a text message from Lloyds saying my account had been used to receive fraudulent transactions and they'd be closing my account.
I reported this to Binance a few days ago and Coingraam is still happily trading on there, so Binance doesn't seem too fussed.
So I'd say yes, there is a high rate of fraud with Binance P2P. Don't use it.
Topic: Are chances of fraud very high on Binance P2P transactions ? (Read 241 times)
I have heard that some scammers are making fake accounts on Binance for P2P and using hacked bank accounts for transfer. If we deal with them for P2P deals, our bank accounts can also get feezed. Have you ever faced this problem on Binance ? How can we reduce the chances of getting affected by this ?
That situation is possible but I doubt scammers can make fake accounts right away that easily and will use hacked bank accounts. There are lots of verifications needed on Binance P2P before becoming a merchant. Aside from that, there's no way we can avoid that if we really encounter a trade with a compromised bank account.
How to reduce the chances of getting affected by that?
a) only select merchants and do trade to only those with 99% positive ratings
b) stop using Binance P2P
What that is most important is to avoid giving your identity documents to people. Those sites too can misuse your identity documents that you submitted to them.
But if you do not give identity documents in these big websites or exchanges, they will put limit or restrictions on your account. Even to do P2P transactions on Binance, some sellers and buyers demand identity documents and they will deny the deal without these documents.
On binance p2p, merchants don't have the right to ask you for your personal documents since Binance has already verified them. Any merchant who asks for such docs or any other personal information is mist likely a scammer and better avoid dealing with him. If he refuses to complete the deal then simply report him and binance's customer service will take care of the rest.
Well the thing is there was blanket ban on cryptocurrency trading back then, banks were ordered by central bank to not do business with crypto individuals. Hence, people were forced to use p2p, now things have gotten somewhat better as ban has been lifted and people can trade normally, somewhat cause now there is 30% tax on crypto earnings, lol.
Prohibition is the bottleneck of everything, when crypto is not supported then it's the user's problem entirely. But when it starts to be accepted again but with a crazy tax rule of 30%, it's just like robbing crypto users,
to hell with the fucking tax that the government gives like that.
They are just like loan sharks who just want to blackmail crypto users.
Obviously, no one's going to bother hacking an account for just $100. Hackers usually go after big sums of money that they can launder through exchanges.
-snip-
I'm not talking about hacking your account, I'm talking about P2P scams that scammers can do. -snip-
Who would hack an account with a balance under $100.
The authorities will only prosecute cases with fraud amounts of thousands or even hundreds of dollars.
-snip-
So, I believe the main responsibility falls on the exchange. They need to make sure they thoroughly verify the information provided, cross-check the documents, and only approve KYC for accounts once they're sure everything checks out. Once an account is verified, it's no longer the exchange's responsibility. If there's an investigation, the exchange might cooperate with the authorities. So, if you're using P2P and funds from the other party come from illegal sources, you should be in the clear unless you're in colluding with them.
It must be because they manage the platform. So, I believe the main responsibility falls on the exchange. They need to make sure they thoroughly verify the information provided, cross-check the documents, and only approve KYC for accounts once they're sure everything checks out. Once an account is verified, it's no longer the exchange's responsibility. If there's an investigation, the exchange might cooperate with the authorities. So, if you're using P2P and funds from the other party come from illegal sources, you should be in the clear unless you're in colluding with them.
But to be investigated in detail by the exchange itself and the authorities to freeze funds in the account, there must be a large enough transaction.
If the transaction is under $100, it probably won't get any response and will be a less complicated internal resolution.
And it also depends on how many people report fraud on the same suspect.
Obviously, no one's going to bother hacking an account for just $100. Hackers usually go after big sums of money that they can launder through exchanges. The only real defense the exchange has is to freeze the account, but that's only effective if the authorities act swiftly to trace the money trail. Binance, in particular, is known for its speed – trades can happen in mere minutes, whether it's through P2P or the regular channels.
That depends on exchange again, platform I was scammed on was local p2p exchange, they couldn't do much about it and eventually shrugged off. I dunno how much and what data binance p2p asks.
Local exchanges will usually be more concerned about fraud.At my local exchange, there was a hack on an account used by a customer, but it didn't get a serious response initially,
but when it was brought up to the media they did investigate, and the hacker was caught.
The point is that local p2p will usually respond more quickly if there is a lot of pressure so that the case will be investigated.
Well the thing is there was blanket ban on cryptocurrency trading back then, banks were ordered by central bank to not do business with crypto individuals. Hence, people were forced to use p2p, now things have gotten somewhat better as ban has been lifted and people can trade normally, somewhat cause now there is 30% tax on crypto earnings, lol.
I have heard that some scammers are making fake accounts on Binance for P2P and using hacked bank accounts for transfer. If we deal with them for P2P deals, our bank accounts can also get feezed. Have you ever faced this problem on Binance ? How can we reduce the chances of getting affected by this ?
This is true because there’s a story like this on our local board which one member made a transaction to a certain P2P vendor that use funds from hack bank account. The bank freeze his assets and require him to submit supporting details to back up all his transactions.
It’s really pain in the ass if you manage to made a deal on one of them since banks is centralized which means they are connected to each other that makes it easy to trace and freeze an account if tainted fiat landed on your account. It’s general rule on P2P to never trade on 3rd party account that has a different name to Binance account.
-snip-
So, I believe the main responsibility falls on the exchange. They need to make sure they thoroughly verify the information provided, cross-check the documents, and only approve KYC for accounts once they're sure everything checks out. Once an account is verified, it's no longer the exchange's responsibility. If there's an investigation, the exchange might cooperate with the authorities. So, if you're using P2P and funds from the other party come from illegal sources, you should be in the clear unless you're in colluding with them.
It must be because they manage the platform. So, I believe the main responsibility falls on the exchange. They need to make sure they thoroughly verify the information provided, cross-check the documents, and only approve KYC for accounts once they're sure everything checks out. Once an account is verified, it's no longer the exchange's responsibility. If there's an investigation, the exchange might cooperate with the authorities. So, if you're using P2P and funds from the other party come from illegal sources, you should be in the clear unless you're in colluding with them.
But to be investigated in detail by the exchange itself and the authorities to freeze funds in the account, there must be a large enough transaction.
If the transaction is under $100, it probably won't get any response and will be a less complicated internal resolution.
And it also depends on how many people report fraud on the same suspect.
That depends on exchange again, platform I was scammed on was local p2p exchange, they couldn't do much about it and eventually shrugged off. I dunno how much and what data binance p2p asks.
Local exchanges will usually be more concerned about fraud.At my local exchange, there was a hack on an account used by a customer, but it didn't get a serious response initially,
but when it was brought up to the media they did investigate, and the hacker was caught.
The point is that local p2p will usually respond more quickly if there is a lot of pressure so that the case will be investigated.
They also have complete data and can detect who the scammer is.
That depends on exchange again, platform I was scammed on was local p2p exchange, they couldn't do much about it and eventually shrugged off. I dunno how much and what data binance p2p asks.
I have heard that some scammers are making fake accounts on Binance for P2P and using hacked bank accounts for transfer. If we deal with them for P2P deals, our bank accounts can also get feezed. Have you ever faced this problem on Binance ? How can we reduce the chances of getting affected by this ?
There's a possibility that your funds could be frozen if the authorities decide to investigate, but, of course, it won't affect you if you're not involved in any illegal activities. P2P transactions are pretty straightforward – you trade cryptocurrencies for fiat with a specific person. In reality, though, it's often unclear where the funds are coming from.
So, I believe the main responsibility falls on the exchange. They need to make sure they thoroughly verify the information provided, cross-check the documents, and only approve KYC for accounts once they're sure everything checks out. Once an account is verified, it's no longer the exchange's responsibility. If there's an investigation, the exchange might cooperate with the authorities. So, if you're using P2P and funds from the other party come from illegal sources, you should be in the clear unless you're in colluding with them.
I use P2P regularly myself, and I'm not particularly worried about this kind of scenario.
That's obvious thing but If you were scammed, what will happen is that even if you did press release button only after receiving the funds, you will get chargeback and 0 funds for selling your coins. If something like this happens to you, do remember to give that buyer negative feedback so others don't get scammed as you did.
Seeing again how much the transaction is made, don't forget to look at the feedback first, if the feedback is 0 or even negative, then don't do the transaction to be safer.
If it has already happened and you haven't received payment, do negative feedback to report to the Exchange platform,
they will definitely respond and will do what they can do.
They also have complete data and can detect who the scammer is.
My colleague frequently deals on binance p2p, his tip is, stick to reputed buyers/sellers even tho rates might be less. Scammers lure often by greed.
But you need to know that every time you transact in P2P, make sure to see whether the balance has been sent or not to the account, if not, never press the Release button.
When nothing is sent until the payment time expires you can report the merchant and give negative feedback.
That's obvious thing but If you were scammed, what will happen is that even if you did press release button only after receiving the funds, you will get chargeback and 0 funds for selling your coins. If something like this happens to you, do remember to give that buyer negative feedback so others don't get scammed as you did.
My colleague frequently deals on binance p2p, his tip is, stick to reputed buyers/sellers even tho rates might be less. Scammers lure often by greed.
Yes, it could be an early indication of a scammer trying to set a trap and then report the order. But you need to know that every time you transact in P2P, make sure to see whether the balance has been sent or not to the account,
if not, never press the Release button.
When nothing is sent until the payment time expires you can report the merchant and give negative feedback.
I have heard that some scammers are making fake accounts on Binance for P2P and using hacked bank accounts for transfer. If we deal with them for P2P deals, our bank accounts can also get feezed. Have you ever faced this problem on Binance ? How can we reduce the chances of getting affected by this ?
I would imagine that someone using the method you mentioned would get caught quickly. I mean, for how long could someone use a bank account account that's not his? Yeah, scammer would probably be able to use victim's bank account once or may be few times but deed is done, no? Also, scammers would likely have multiple such accounts lined up.
Something similar happened to me few years ago, this was the process:
Scammer creates a buy order, they have unsuspecting victim lined up with his bank details who is going to send money to seller or scammer sends it themselves if they got the access, scammer sends the money from victim's bank account, seller confirms that he received the money and p2p platform gives up the custody of coins because seller gave the confirmation that he received the amount, scammer gets the coins. Now, after few days seller gets chargeback from the victim's bank account that he was duped into sending money, seller loses the coins and his money received also gets freezed.
This is exacty what happened to me few years ago. It wasn't binance p2p but local p2p exchange.
My colleague frequently deals on binance p2p, his tip is, stick to reputed buyers/sellers even tho rates might be less. Scammers lure often by greed.
Yes, there's a very high likelihood of fraud.
Why would someone that has access to binance.com with a verified account want to trade in P2P? It's not unlikely that ill gotten funds are utilized to complete these transactions and could potentially get the receiving party's account flagged or even transactions charged back. So I'd say avoid it unless it's one of your last options. Also go by feedback and not best price if you do.
Why would someone that has access to binance.com with a verified account want to trade in P2P? It's not unlikely that ill gotten funds are utilized to complete these transactions and could potentially get the receiving party's account flagged or even transactions charged back. So I'd say avoid it unless it's one of your last options. Also go by feedback and not best price if you do.
Hacked bank accounts ? How ? If anyone has hacked a bank account, he would rather withdraw the money rather than spending it slowly to pay for the P2P deals. Wouldn't the original owner get notified that a transaction is made from his bank account without his knowledge 
I don't use Binance but I think what they do is steal the data of other people and use it for their Binance account. They use the details of that victim to create a fake account that they use to scam other people.
I don't think that account can be verified though, that is why it's always advisable to only deal with verified accounts, not like it's 100% secure, but it's better.
We just have to be careful of how and where we drop our personal documents because we do not know what they can be used for.
Centralized exchanges carry too many risks.
I have heard that some scammers are making fake accounts on Binance for P2P and using hacked bank accounts for transfer. If we deal with them for P2P deals, our bank accounts can also get feezed. Have you ever faced this problem on Binance ? How can we reduce the chances of getting affected by this ?
Making fake accounts on Binance It is not as easy as making fake accounts here or on social media. All accounts in Binance P2P are KYCed accounts, and there is a trust record. If the user scam you, you can leave a rating.
- Only deal with users who have a lot of feedback
- Read the negative feedbacks and whether they are related to scam
- Read the account's comments to these feedbacks
- Do not provide your personal data, only the account number and your full name
- Start trading with small amounts, and with days you can increase them.
You may be scammed once or twice, but you will not always be scammed and learn from your mistakes.
But if you do not give identity documents in these big websites or exchanges, they will put limit or restrictions on your account. Even to do P2P transactions on Binance, some sellers and buyers demand identity documents and they will deny the deal without these documents.
I think he meant about the other end that you're trading with, the other person but not the exchange. The scammers use the victim identity to register on Binance and also send money from the victim bank account.
On this case, this is true that scammers can register the stolen data/identity of other people. And that's why only deal with huge percent of completion or trade histories say on Binance P2P. 
No, I've never had that problem before and I don't expect it to happen because it's a loss for me.
We can only check their status by looking at the profile on their account and how many transactions they have made and what reviews there are from people who have transacted with them.
If everything is good, you can continue transacting with them but don't immediately make large transactions. But try withdrawing small amounts of money while seeing how they respond to their customers.
You need to read the instructions provided by Binance to reduce the risk of fraud and not release the coins before the merchant sends the money to your account.
We can only check their status by looking at the profile on their account and how many transactions they have made and what reviews there are from people who have transacted with them.
If everything is good, you can continue transacting with them but don't immediately make large transactions. But try withdrawing small amounts of money while seeing how they respond to their customers.
You need to read the instructions provided by Binance to reduce the risk of fraud and not release the coins before the merchant sends the money to your account.
But if you do not give identity documents in these big websites or exchanges, they will put limit or restrictions on your account. Even to do P2P transactions on Binance, some sellers and buyers demand identity documents and they will deny the deal without these documents.
I think he meant about the other end that you're trading with, the other person but not the exchange. Jump to: