In 2023, there are a number of P2P scams to be aware of

Peer-to-peer (P2P) payments have become increasingly popular in recent years, as they offer a convenient and secure way to send and receive money. However, this convenience has also made P2P payments a target for scammers.

Scams in P2P Trades

P2P trades involve two individuals trading cryptocurrency with each other without the need for a middleman or any third party. When carrying out a P2P trade, you are fully in charge: you decide when and who to buy and sell from, your payment option, and many other parameters as you wish.

The regulations around P2P transactions are a little relaxed since there is no direct third-party involvement in the trades. For this reason, bad actors try to defraud people who are not careful enough when transacting.

How P2P Scams Work

The following are some ways in which P2P scams are executed.

Fake Bank

A buyer sends a fake credit alert to the seller, so the seller can confirm payment and complete the transaction. Since the seller has gotten a credit alert, he may not bother to check his account to confirm that the money has truly been sent. This way, the seller releases the funds in exchange for nothing.

Double Identity

A seller can use alternative means to tell buyers where to send their funds. After the buyer sends the money, the seller will start to claim that the transaction has not been completed since he has not received the money. In this case, the seller won’t release the already-locked funds in order to get paid twice.

Fake Customer Support

Scammers can offer to help you solve an issue with your P2P platform under the guise of an official customer representative. They can send you links that will redirect you to a website similar to the original one. Logging in with your details on such a website will give them access to your details, with which they can withdraw all your funds or carry out other fraudulent activities.

Fake Receipts or Forgery

Scammers forge screenshots and other evidence to claim they have paid and carried out their part of the transaction. They do this to pressure the seller into releasing funds even though the transaction has not been confirmed in the seller’s account. A seller who falls for this only releases the fund in exchange and gets nothing in return.

5 Ways to Avoid P2P Scams

The following are ways you can avoid falling prey to these fraudulent activities.

1. Make Sure You Record Transactions

2. Always Confirm Transactions in Your Account

3. Trade on Secure Platforms

4. Only Interact on Official Channels

5. Avoid Traders With a Low Transaction Completion Rate

By following these tips, you can help protect yourself from P2P scams.