P2P Trading Scams Involves And How To Avoid Them

Published by Hyginus on

P2P connects people who have crypto tokens with those who have money and are willing to buy them. 

Typically, a list of merchants who have the desired token is presented to the buyer, who then selects the trader from whom he or she want to purchase.

Some Pitfalls You Should Watch Out For 

• Identity Fraud

This is a fraud in which the vendor receives funds from a different account. To receive payment, the merchant sends you other account credentials via another media. They will claim that they did not receive the funds and refuse to finalize the transaction once you make a payment to this account.

• Transfers That Are Fake Or Reversible On P2P

In the P2P community, this is a pretty popular fraud. In this situation, the buyer takes the required step of paying the seller, causing the seller to complete and conclude the deal.

The buyer, on the other hand, will file a bogus complaint to the bank after several hours, claiming that he did not make any transaction. The buyer is then refunded by the bank. The vendor loses both the crypto and the money as a result of this.

How To Avoid Getting Scammed On P2P

• Do not pay the seller until the crypto is in the escrow

When you acquire BTC through a P2P exchange, the seller may ask you to submit money instead of the coin to escrow. Once you’ve done that, your chances of retrieving your coin are slim to none. The seller’s crypto will appear on the trade page once it has been transferred to the escrow.

• Do not authorize the transaction until you have received payment confirmation

If you’re a seller on a P2P site, it’s critical to double-check the payment before releasing the cryptocurrency from escrow. Always double-check that the money has been received. You should not rely on the buyer’s evidence. This is because con artists may present fictitious proof of payment. Although it is necessary to request proof of payment, you should not rely on it as confirmation.

• Always keep in-trade dialogues going

Conversations should be kept within the confines of the platform. Payments should not be made to numbers provided outside of the platform. If the buyer sends money to an account other than the one listed on the platform, the seller can easily block the transaction and file a fake dispute alleging that the buyer did not pay. Always double-check that the account name matches the seller’s identity.

• Recognize the various payment options available to you

Because different payment methods have varying risks, it’s crucial to understand the risks associated with the one you choose, as some of them put the seller at danger.

This is because some payment methods allow for chargebacks, which means that the payment can be reversed in certain circumstances. As a result, if a buyer refuses to pay, the seller loses both the crypto and the dollars.

• Always look into the reputation of the seller or buyer

Always examine a seller’s or buyer’s reputation and feedback scores before dealing with them. P2P exchanges like Remitano welcome new users every day, so there are plenty of new traders with positive feedback scores. However, it is safer to deal with a trader who has a long track record of successful transactions.


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