Main conclusions
Protecting our users is Binance's top priority, which is why we have comprehensive security measures in place throughout our ecosystem. But it is important to remember that the first line of defense is the user himself. Before you start trading on a P2P platform, familiarize yourself with the most common scams so you can recognize them.
Do not mark a P2P transaction as completed until you are sure that your bank account or cryptocurrency wallet has received all the funds that the counterparty must transfer.
Take screenshots of all transactions to prove they were completed if necessary. And don't hesitate to report any suspicious behavior.
Read this article to the end to learn how to recognize popular scams on P2P platforms and make safe transactions.
P2P trading allows users to buy and sell cryptocurrency among themselves using suitable payment methods and currencies. Before the advent of centralized exchanges, this was one of the first ways to trade cryptocurrencies.
Trusted by millions of users around the world, Binance P2P exchange offers the best liquidity, the highest level of security and over 700 payment methods and 100 fiat currencies. If previously trading on a P2P exchange was associated with an increased risk of theft and fraud, now many platforms have significantly increased the level of protection. For example, Binance P2P offers an escrow service, regular security updates, strict identity verification procedures, and other user protection mechanisms. But no matter what measures we take, all trade transactions involve risks, and P2P trading is no exception.
Common types of fraud on P2P platforms
While Binance makes every effort to ensure the security of its users, vigilance should always be exercised. The surest way to avoid becoming a victim of P2P trading scams is to understand the most common tactics that scammers use. Below are common P2P scams that are useful to be aware of.
Fake Help Desk
Fake support messages are a common tactic used by cryptocurrency and NFT scammers. For example, if you are having difficulty using a popular P2P platform and ask a question on social media, a scammer may pose as a representative of the P2P exchange and offer to help. It will then redirect you to a fake website that appears identical to the real one and convince you to enter your credentials or cryptocurrency wallet details. This will give your confidential information to the attacker.
To avoid becoming a victim of fraud, seek help only from official representatives of the P2P exchange and carefully check the site domain. Sometimes attackers also send fake security threat messages via email or SMS. There is only one way to protect yourself from them: do not follow the links until you have verified the authenticity of the source.
Fake receipts
When concluding a P2P transaction, you also need to carefully check the information that the counterparty sends you. The scammer may send a fake screenshot claiming to have fulfilled their part of the deal, and demand that you fulfill yours. If you do this without checking to see if you actually received the funds, you could lose your money without receiving anything in return.
To avoid getting scammed during P2P transactions, always check your bank account or cryptocurrency wallet. Only authorize the transfer after you are sure that you have actually received the required amount. Never transfer funds based on receipts alone.
Translations “by mistake”
Sometimes an attacker may try to cancel a P2P transaction after it has taken place. For example, he may call his bank and claim that the transfer amount is incorrect or someone has gained unauthorized access to his account. In this case, the cryptocurrency seller will lose the transferred funds. Moreover, fraudsters can use threats to force him not to report the cancellation of the transaction to law enforcement agencies.
Don't be intimidated: collect evidence (such as screenshots) of your correspondence and transactions with the scammer.
Chargeback Fraud
Some P2P platforms have a chargeback feature that scammers can take advantage of. After completing a P2P transaction, the attacker can file a chargeback request and indicate that he did not authorize the transfer of funds. He may claim that the transaction was erroneous or even fraudulent in order to get the original payment reversed. As with fake receipts, the merchant may rush to confirm the transaction without verifying that the funds have been deposited into the account.
Get into the habit of taking screenshots of all transactions to prove they were completed if necessary. This will speed up the appeal process if you need to contact customer service due to fraud.
Check fraud
Злоумышленники могут попытаться заплатить с помощью чека, который не может быть обналичен из-за недостатка средств на счете, или просто отменить чек после выставления счета. Чтобы защитить пользователей, Binance P2P не поддерживает оплату чеками, поскольку этот способ связан с повышенным риском и неопределенностью. Никогда не соглашайтесь на оплату чеком и проверяйте, не отправил ли контрагент чек вместо оплаты способом, указанным в объявлении.
Чтобы получить дополнительную информацию, изучите статью P2P-торговля: как избежать мошенничества с чеками.
How to protect yourself from scammers when trading P2P
Now that we've covered the most common types of P2P trading scams, here are some tips to help you protect yourself and your money.
Take screenshots
Take screenshots of all your transactions to prove they were completed if necessary. In case of fraud, screenshots serve as the main confirmation and will help you prove your case when filing an appeal.
Trade on trusted platforms
Only work with reputable P2P exchanges, such as Binance P2P, where users undergo identity verification before being allowed to trade. This significantly reduces the risk that the counterparty will be a fake account or a fraudster who has stolen someone's credentials.
In addition, Binance P2P has an escrow service: we hold the cryptocurrency until the transaction is completed. This helps prevent theft and fraud, increasing the reliability of the platform as a whole: attackers will not be able to steal your money without fulfilling their end of the deal.
Check transactions carefully
Do not approve the transfer until you receive the promised money. Always check your account to ensure the transaction was completed successfully. Do not rely on proof of payment sent by the counterparty, as there is always a risk that it is counterfeit.
Chat on the platform
Try to correspond with the counterparty only on the P2P platform where you are making a transaction. Communication through external channels will make it easier for the fraudster if he makes a false accusation against you or denies the fact of the transaction.
Contact support
If you are unable to come to an amicable agreement with your counterparty, contact support for help. Binance P2P specialists will promptly answer all your questions and help solve any problem related to using the platform.
Learn more about how to protect yourself from P2P trading scams in the article Six types of scams to watch out for when using P2P.
Start trading on Binance P2P
Ready to start trading on Binance P2P exchange? Register a Binance account on the website or download the Binance app. Once you pass your identity verification, you can buy and sell cryptocurrency on Binance P2P.
To learn more about the Binance P2P platform, read the following articles:
(Blog) Introduction to P2P trading: what is peer-to-peer trading and how does a local Bitcoin exchange work?
(Blog) How to Report P2P Fraud on Binance App
(Support) P2P FAQ
(Blog) How to block a user on Binance P2P
Denial of responsibility. Your use of the Binance P2P Services and all information and other content (including third parties) included on or available on the Binance P2P Platform is at your own risk. Our responsibility is limited to processing cryptocurrency transactions. All payments are final upon completion unless otherwise required by law. Binance P2P Platform has neither the right nor the obligation to resolve any disputes arising in connection with a completed payment. Neither the Binance P2P platform nor the merchants are responsible for any losses incurred as a result of the payment made.