Key Points
In the 'paying for canceled/expired order' scam, scammers deceive buyers into sending funds after the trade has expired or been canceled by rushing the buyer, making false promises, and faking screenshots.
Do not send funds after an order has been canceled or expired, and always communicate on the Binance platform.
If you have been scammed, take action immediately: Document everything and contact Binance Support.
Scammers love hasty buyers, and in P2P trading, time is their weapon. By deliberately stalling during the active order period and pushing you to make a payment right as the order expires, scammers create the illusion that the transaction is still active – when in reality it is not. Some scammers even fake screenshots or claim to have extended the order time in order to trick you into sending them funds. In this blog, we will detail the mechanics of the 'pay for canceled/expired order' scam, provide real-world examples, and share practical tips to protect yourself.
Understanding the P2P Scam 'Paying for Canceled Orders'
The paying for canceled/expired order scam is a tactic used by dishonest peer-to-peer (P2P) crypto sellers to trick buyers into sending payments after a trade order has been canceled or expired.
In Binance P2P, these transactions typically involve the seller's funds being held in an escrow system after the trade begins. The seller will set a deadline for how long they are willing to wait for the buyer to complete the payment. If the buyer does not make the payment in time, the order will be canceled and the crypto returned to the seller – and this is where scammers exploit loopholes in the system. Here are the mechanics of the scam:
1. Posting Attractive Offers: Scammers pose as sellers and post cryptocurrency offers on the P2P marketplace at very attractive rates to lure buyers.
2. Stalling: After the buyer initiates the trade, the scammer tries to stall during the active order. Scammers often intentionally provide incorrect payment details, making it difficult or impossible for the buyer to complete payment on time. To further delay, scammers may also ask buyers to contact them on a third-party platform or even request unnecessary information, such as front and back photos of an ID document.
3. Pressuring Payment After the Order Expires or is Canceled: As the order nears expiration or after it has expired or been canceled, the scammer provides the correct payment details. Scammers pressure the buyer to make payment using misleading phrases like 'I have prepared the order for you' or 'I will reactivate the order after you pay.'
This tactic is intended to create a sense of urgency and give the impression that the transaction is still active, when in fact it is not. Some scammers may even go further by sending fake screenshots of the order page, seemingly showing that the payment deadline has been extended – when in reality, no extension has been made.
4. Buyer Pays for an Invalid Order: Because the buyer has already trusted the seller, they make payment even though the order has been canceled or expired. Since the platform no longer recognizes the transaction, the buyer does not receive any cryptocurrency.
5. Stalling Again to Escape: To further stall, the scammer may pretend to be cooperative by starting a chat with customer support or filing an appeal. This delaying tactic gives them enough time to quickly withdraw funds before the platform can freeze their account or initiate an investigation.
Real-World Example of P2P Fraud
A scammer poses as a seller on the P2P platform, and posts a crypto ad at a very attractive rate – often more than 5% lower than the bottom price – to lure unsuspecting buyers.
After the trade begins, the scammer intentionally stalls by sending confusing and vague messages – for example, the 📞 emoji.
As the order approaches expiration or is canceled, the scammer suddenly becomes enthusiastic, claiming they can extend the order time.
Once the order has expired or been canceled, the scammer continuously pressures the buyer to make payment, assuring them that the crypto will be released after proof of payment is sent.
In some cases, scammers may go further by requesting funds again under the pretext that additional payment is needed to 'reactivate' the order.
How to Protect Yourself from P2P Crypto Scams
Remember, scammers rely on their deception to make you pay for canceled or expired orders. Do not make payments if the P2P order has been canceled or expired, as canceled orders cannot be reactivated.
1. Do Not Pay for Canceled or Expired Orders: Do not send payment if the P2P order is no longer active. Once canceled or expired, the order cannot be reactivated.
2. Stay Vigilant: Be cautious of sellers' claims, especially if their offers seem too good to be true. If you notice anything suspicious, report it immediately to our support team.
3. Keep Conversations on Binance: Conduct all communications related to P2P transactions within the Binance platform to ensure security. Do not share your personal contact details with others.
If you have made a payment and informed the seller, but the seller does not release the crypto after confirming payment, please appeal. Our support team is ready to help resolve the issue for you.
If You Have Become a Victim of Fraud
1. Contact Support: Reach out to our customer support team to report the issue.
2. Document Everything: Keep all communication and transaction data related to the incident.
3. Report: Submit a report by following the steps outlined in this guide: How to Report Scams to Binance Support.
Conclusion
A number of scams, including 'paying for canceled orders', are designed to exploit quick decisions and a false sense of urgency. By abusing order time limits and creating confusion, criminals attempt to exploit the fundamental features of the P2P process. While Binance has security measures like escrow and reporting systems, no system is perfect. Security is a shared responsibility – it's important to stay vigilant, double-check order status, and always transfer funds after ensuring everything is in order.