Topic: Be careful of scammers on p2p exchanges (Read 376 times)

Should have opted for bank transfer. That protects you from 99% of those chargeback problems.

And that guy won the dispute I assume?

Eh it was chargedback like after a week.

With all these good notifications some persons still play the dumb game and end up been scammed.

This is why it is very mandatory to always check the account balance before releasing coin, depending on the transaction receipts alone is not enough prove of payments as most banks operate 10mins - 30mins cashback policy, this is why I always go against using Paypal for any p2p transactions.

I also have some transactions on the Binance platform, most of which are transferred from other wallets to operate here. There are very few transactions in usdt\btc, and this part of the operation is very smooth.

When I usually use the P2P function, I will confirm:
1. The reputation of the merchant and the number of transactions
2. Transaction amount
3. Confirm whether my payment amount has increased by this amount
4. Put the coin after confirmation

It seems to be very easy, some people still have some episodes,

"Watch your wallet"

I had similar case couple years ago, i put BTC for sell, he made payment, ofc I was going to confirm but after few days the payment was 'chargebacked'. Crypto was sort of banned then so I did not proceed with legal as I thought that would be like beating a dead horse.

I want to share a story too, Axie Infinity has been taking over the Philippines crypto scene with a lot of people of all ages playing it. An acquaintance of mine got scammed around thousands USD worth of in-game currency called Smooth Love Potion and the scammers are getting more crafty now and more blatant because they had every measures to do prevent the possibility of scam, they have talked to the scammer with a camera on in Discord and they even have the Drivers License shown as a proof that they won't get scammed but they still got scammed.

You don't have to trust the other person on LB, you just need to be careful and not release the coins before you have received the payment, simple as that. Before getting to know a trader on LB in real life and since then dealing only with him I probably traded with 10-20 people, never have I been scammed. Open your bank app, see that the money is there, and only then release the built-in escrow.


This thing about the targeting of new accounts make me wonder what their strategy is, I mean it's not like you're approaching every new trader, you put up our offers there and you wait for a guy with a new account to bite but for that, you would need yourself to have if not just the best offer around but also an older account, and once you scam somebody that is done for. Also, if you put offers like that an experienced user might want to take advantage of this so you're either going to have to cancel the deal and get a bad review or take the loss.

I think this is more like opportunistic scamming rather than a fully targeted one, they see a chance and they try to scam knowing that they might get away with it blaming it on technicalities.

That's a good notification. Binance doesn't make claims they can't prove or verify. They are simply informing the customer that the buyer claims to have sent the payment. Before releasing the crypto, it's recommended the seller makes sure that he has received his money.

A bad notification would say that the payment has been sent by the buyer and the seller should release the coins as soon as possible. However, that is not the case here and Binance has done the job properly.   

Binance has very strict rules for verifying merchant on their peer2peer exchange, for every verify merchant must have record of transacting on other peer2peer exchange before even been listen to, plus other requirements. I have tried several to get my application approved but since I haven't traded with any records on other peer2peer sites, is kind of difficult. That been said, I believe there isn't any verified merchant that'll put his reputation at stake for fee dollars as you probably must haven't been trading much for him to want to scam you.

Now if the trader you're trading with isn't a verified merchant then it could be you were been tested which could have resulted to a scam. On a general note though, the nigerian banking system is very bad and network failure us quite common over here which also the scammers are using to their advantage as an excuse to why you haven't received your funds even though they claim to have sent it.

I have stayed 3days (weekend) before receiving the funds I transacted on Binance P2P but luckily this wasn't our first transaction so we (the buyer and me) trusted ourselves and waited on the bank to resolve the issue which they did and we completed our trade. Just to be on the safest side, I'll advice to only trader with verified merchant from binance (there's an option for that). Scammers are actively looking for gullible victims to exploit.

Adding to this

Some scammers initiate the trade and when you send them the fiat currency they keep you waiting.
Then they talk to you and persuade you to cancel the payment from your end and retry.
Many people don't know that when we send fiat to someone and then cancel the payment from our end then the trade is closed and we cannot get back that money again.

P2P exchanges also trying to deal with such scammers by implementing feedback system, response timing and they always tells the users that banking transactions are almost irreversible so they recommend it for the users and these scammers also the main reason that p2p exchanges are forced to implement KYC so they may assure that they eill be having the identity if someone involved in scamming.

This is the disadvantage thats why I hate to do p2p trade since its really hard to trust anyone over the net, thats why I always prefer to buy at exchange although sometimes the fee is high but we can call out our friends if they want to buy the same coins to lessen up the fees.

Also now this is a good learning experience to the person who almost got scam and for sure he will be more csreful next time.

If his friend actually there when the trade was happening then he might be scammed but luckily OP was there and he knows since he has experience in the cryptocurrency scammers through bitcointalk and various sources that is why OP is advising about this to newbies because not every newbie is going to have someone like OP when they are noob with such things.

It's nearly impossible to get scammed on Binance p2p with the terms and conditions bodly written on every p2p transactions and also the same message is  sent to seller as sms to notify he/her not to release any coin without confirming payment first

You Always need to be careful in this crypto market so as to ensure your funds have been transferred safely.If you are dealing in P2P transaction then you might need to be very careful as scammers might trap you into this scam very easily through various options and you would not know it until the funds are lost.Some of them include like:
1)Once you transfer the funds no response from the other party
2) Making Fake receipt by the scammers so as to deal that they have make the payment by forging the document and ask you to do the same.
3) Cancellation of transaction so as to tell you that payment is not received but it is not true.
4)Sending fiat to some other account and sharing the screenshot with you with similar information so as you can't find details easily and they get bitcoin without sending any dime.

So we must be careful about them and follow proper protocol and must have proof of the payment in screenshot form and ensure first the funds are transferred to your bank account and then send the coins or use the legit escrow service and go through that method to avoid any loss.

I haven't used the Binance DEX so I am not sure about their notification system and what exactly it says.

@Oshosondy
You said that you received a notification from Binance in which it is said that the buyer claims to have send fiat to your bank account. I assume that is an automatic notification that gets sent to sellers as soon as the buyer marks the transaction as paid.

What exactly does the Binance notification say?
Are they just informing their clients that payment has been made, or do they advise them to manually check their bank accounts to ensure payment has been made before releasing their coins? If they aren't doing the latter, it's an inadequate way to notify users, which can, as we have seen, lead to the loss of coins for those who don't know how the system works, and it needs to be changed asap.

Could we see the notification message? Feel free to cover any private info that might be in it.

This is probably one of those ambitious p2p buyers that posted a huge buying offer. I already saw some of them and posting a really different rate on binance. Of course their price are really enticing. Who would have offered a higher rate than the actual market isnt it? But this is pbably due to that they are luring newbies on their trap and once fooled they wouldnt release any money at your bank at all. Just lile what happened to OP but good thing here is youve posted it OP so many will be warned about their modus. Gonna tell you its deposited, but the best way to confirm it is open your mobile account and check it yourself if the money was really deposited.

Scammers are introducing different device to penetrate to people nowdays so to detect them currently is very difficult, more  especially in terms of exchanges via p2p,  op your right because a friend told that is been scammed via exchanges last month, then i began to wonder while people associated or indulge their self into this unbearable attitude of scam, let us take an adequate measure to protect ourselves from the hands of scammers, because this p2p transaction is inviting much people who are not trust worthy to transact with people.

I mean, yes, I got that but I was thinking of another thihng but either way, I hope his friend didn't get scammed.

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I'm not a seller in the P2P exchange but I'm pretty sure you just click the release button even if you have 2FA codes. (When I'm trading my crypto to FIAT. Is this true, OP?

Mistakenly bitcoin release can be from carelessness and lack of 2FA for Bitcoin release.

If you set up 2FA requirement for Bitcoin release action, it will be a second confirmation, a second reminder for you to check all things before you release your Bitcoin for a trade.

Without 2FA setup for Bitcoin release, you or your children can release your bitcoin in one second. In addition, bitcoin transaction is irreversible.

Choose 2FA application, not SMS code (Sim swap attack or problems to get SMS code).

He answered why he was using new account, he actually helping someone to register and how to trade on binance exchange at that time he found that some scammers are targeting newly registered accounts.

Legit P2P trader there will never ask extra procedure or reason just to sway there customer. Pay attention on Successful Trade Rate and Number of transactions. Base on the screenshot you provided, the guy is obviously is doing shady things because he just need to send the money since all bank details is already provided by his customer.

I'm pretty sure everyone using the P2P feature like in Binance has an idea of what could happen if they press the release button without ever receiving the amount of money that should be deposited.

I think it goes both ways, Buyers and Sellers can be scammed if they don't clearly check the right things with their assets whether they release it or not. Make sure to double-check everything and have evidence when transacting.

I haven't experienced this and I make sure that I will always trade with a high-rate seller/buyer in the P2P exchange.

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I'm quite confused with your story at the start though. You have two accounts, one new and an old one. It shouldn't be included in your story, it just made it confusing. It just doesn't make any sense to be included.

Sometimes a legitimate trader also may face the transaction issue due to maintenance on the banking app and services but we should never release the Bitcoins until we see the funds in our bank accounts that is also the p2p exchanges says it as well. Never do p2p trades if you want to convert BTC into fiat instantly because the chances of making errors at that time are high.

I think I've seen somewhere that have shared the same and it's becoming common in Binance's P2P platform. Always verify first if the payment have arrived to you before releasing the coins.

Too bad that there will actually be newbies that can easily be fooled by them. Does Binance can't do something on this matter?

The safest and safest way to avoid scammers on P2P Binance is to choose a seller that has a Merchant sign, because a seller who has a merchant mark is a seller that has been chosen by Binance, so it will be safe from scammers or you can filter seller accounts that have only merchant marks that appear.
Don't be tempted by cheap selling prices and expensive buying prices. because some of them are just price gimmicks. I have made a transaction but it was never processed.

Some Common Binance p2p Scammers To Avoid

• Higher rates
• Low successful transaction percentage
• Low transaction made

These people are always rushing to make transactions just before the end of the timing and sometimes they are the first person to call to persuade you to release coin. Do not trade with these scammers, I've tested all of them and confirmed that they are scammers.
Take note of their names.

I faced this scam attempt before, but it was on Remitano and during the BTC boom back in 2017.

That guy marked the payment as made, and insisted me to release the money after claiming it to be made via GIRO (bank A to bank B).

Had to involve the staff and furnish proof that I didn't receive the payment. That dipshit buyer stopped responding ever since so after like 48 hours, I finally received back my BTC. Thankfully the price appreciated by then or else I'd be having the seller's remorse.

Buyer can click on Confirm (means they already transferred their payment to your bank account). Even they did not transfer anything, they can click on Confirm.

It is vital. Seller has to check bank account to check whether payment was actually sent by the buyer or not. It is not a fault from Binance if seller does not check anything, and click on Confirm receipt, it is your fault.

Binance has a tutorial, How to sell cryptocurrency via P2P trading on Binance Lite?
On other P2P marketplaces, same rules and only different in user interface. P2P markeplaces are the medium between buyer and seller, gives them a Escrow service. Buyer and seller have to confirm that they get what they want before they finish a trade.

That is true but funny and surprising enough that I used express, using express means it will be a very fast trade, no need to look for people with ads that has prices that you want, only a single person that has a good price with the current best exchange rate will be paired with you, that was the one I used, but yet the whole scam drama occured, we should be very vigilant at all point in time.

Scammers will do
- Coin locking: open a trade with you then be unresponsive
- Create pressure to release coin: open a trade, send you a fake payment, even you have yet received  your money (in bank account, giftcard can not use, etc.). They always give you reasons and ask you to release your bitcoin.
- Some don't care what trade partners do, they only open trade, wait for luck to win dispute. They wait for mistake from moderator when handling dispute.

What are common things from scammers?
- They are new users: empty trade history or have very few trades in history
- The amount of finished trades could be small. They finished a few small trades to get positive trust, feedback. Use those positive feedback to scam.
- They give you offers with rates that too good to be true. You will be scammed if you are greed, find for such offers and ignore the fact that those offers are from new users.

I thought this could happen to me and I appealed immediately I messaged him that I will appeal for it, maybe he got a signal that I have appealed about it already is the reason he later had to send me me the money. Scameers are cunning, they have different ways to scam newbies. But I knew he might wanted to appeal is the reason I did not let it take long at all before I appeal.

It's so dangerous to deal with p2p nowadays especially if you don't know whose the other person behind on the internet. An escrow is the best option to me but if you are dealing someone outside from the forum like using binance or localbitcoin it's kind of hard to trust someone. If newbies want to do some p2p trading they must be vigilant to know what to do or else they will find themselves complaining how they got scammed.

I don't know how to stop those scammers but one thing I know is you might want to trusted 3rd-party to act as a midman between you and the buyer/seller.

I have experienced this at least a couple of time on p2p.

In one case, I was selling some USDT for fiat but the other trader's payment window was so long, I think about 4 hours. The trick was to make me keep waiting until I forget and just as the 4 hours were about to end, the trader marked the trade as paid and then shortly opened an appeal claiming he had paid the funds but I had refused to release the coins.

He found me so alert, I post all the proof showing I had not received anything but he insisted that he had sent the money. As soon as the support joined the dispute, he immediately cancelled the dispute.

These are the characters that needs serious curtailing on the p2p network. Scams like this are too cheap for those that are knowledgeable in the system and beginners should use this means to equipped themselves with ways of handling these form or schemes of scams. Ii don't joke around with this sort of things on the p2p network. The business we do gives no room for complete trust especially with the anonymous nature of our person and as such,  its important you be suspicious of any unusual move and yuse all you've got to its correction than being sorry.
I don't joke around with things like this. In fact, in my p2p transaction,  you've got to pay upto the nearest penny as stated to be awarded the coin. It creates some decency in the system.  Always confirm confirm ensure you get the value of what your giving before releasing your coin. Its not just about you but, it makes the system better.

Releasing coins in P2p transactions without first confirming that the payment has arrived in your bank account is a mistake that is really pretty easy to avoid, users should take P2p TX's as everyday transactions involving other real life items, you do not give out your products to people without them having paid for it and even if you do, there must be a measure to ensure they pay at a later time, but since this is a decentralized/trustless network, with no way to identify the buyer, only release coins when payment has been confirmed.

Having said that, another palpable reason why people make this mistake is that they do not really understand how P2p tx's work, which is still a fault of theirs, before trying out any feature in crypto, it's basically expected of you to have done your own quality research on how things work and ways you can possibly lose funds and other whatnots, so by the time you're actually trying it out with your funds, you'd be able to notice when things are looking strange and when you're in talk with a possible scammer.

I traded bitcoin with someone today on binance, I used a newly registered account, it was actually not my account and my account is not new, I have never experienced this before maybe because my account is already an old one while scammers are targeting new accounts. I helped someone to open a binance account after he has disturbed me many times to teach him about how to use binance in a way he will be able to buy and sell bitcoin. I helped him with his first trade three days ago, and I helped him also today.

What happened today can result to scam if not that I know about p2p especially how to avoid scam. The pictures below was the chat between the buyer and I (the seller).


Not long after the bitcoin was in escrow,  binance sent me message that the buyer has deposited money into my bank account, the release bitcoin button was enabled so that I can be able to release the bitcoin to the buyer. I checked my bank account number and I saw nothing, I checked it multiple times refreshing it but no money received. If yi am a newbie, I could have pressed the release button to release the bitcoin, this is a way a newbie can be scammed. I do not know if truly the buyer is a scammer, but I believe he may want to scam. I sent him message I will appeal for this, not long after I told him I will report him, I received the money. I believe this can be a scammer targeting new accounts on binance, why is he targeting newbie account on binance because the account was opened three days ago.

This happened to me today, never release bitcoin from escrow until your bank account has been funded, scammers might take advantage of new accounts created on p2p exchanges, trying ways to scam people that owns new accounts.