BEWARE of using MOBIKWIK/PAYTM etc to trade BTC

[masakali]

Hey guys, beware of trading on LBC using PayTM/Free Charge and especially MobiKwik. These company have non-existent security features and there are several of these wallet users complaining of hacked accounts/ etc.

And their customer service is pathetic. IDK how they are allowed to operate as a psuedo-bank financial service yet provide zero (I REPEAT BIG ZERO) when it comes to customer service. Mobikwik guys cannot even speak English properly.

Mobikwik does not even need a OTP to send money. Just login on APP with mobile number password and send money. I hope they atleast implement OTP now. Poor really... 

Modus operandi on LBC seems to be
1. Fraudster hacks unsuspecting user's PayTM/Mobikwik account.
2. Fraudster goes to LBC and finds users selling BTC for these APP wallet trades.
3. Places trade and transfers money to seller's wallet app.
4. BTC is released.
This is repeated quickly even 3-4 times a day if these fraudsters can.

In 2 or 3 days, the wallet's actual user finds out the balance is missing and makes a complaint with the wallet app.
Their immediate response is to completely block the all accounts to which money has been sent.

So basically you have sent BTC but now your wallet which received money is stuck as blocked, and there is no way to unblock it (well, you literally have to spend hours for this, send them ID proof/bank statement/ blah blah so it is a complete PIA and still no guarantee that it will be unlocked)

TIPS: If you really have to trade via this, make sure it is from a very reputable user having 100's of trades and to be completely safe, take a bank account statement of the person who sent you money. The bank account statement should show the transactions which added money to their PayTM or other wallet apps

[dragonballz1]

Ok thank you for giving us the detailed description.I was getting interested in buying bitcoins that way specially to buy bitcoins with paytm because we can buy small amounts with that.
Any thing which sounds good always turns out to be scam.

[masakali]

As a buyer you are most likely not affected by this particular scam method but as seller you can face problems like wallet is locked etc due to fraud.

[philiveyjr]

As a buyer you are most likely not affected by this particular scam method but as seller you can face problems like wallet is locked etc due to fraud.

You mentioned that they come to block all the wallets the money was sent to , so even as a buyer when you get those funds in your personal wallet, you go through the risk of losing it all if they block your wallet.

[masakali]

Hey hey hey! 
We're talking about BTC wallet and MobiKwik/Paytm wallet both are different(not to confuse between the both)

Yes they block all the wallets to which the fraudsters send the money, so if you are just buying BTC, you will only be sending Rupees from your mobikwik wallet to another person's wallet and that person will send you BTC to your bitcoin wallet., 
So simply buying BTC, you will not be receiving these fraud transactions into your mobikwik wallet. I don't see any reason why they should block a wallet which does not receive any transactions.

I see more of a risk whoever is selling BTC in exchange for Mobikwik or paytm transfers.   

But still safer to stay aware of these types of scams, these mobikwik wallet companies are really badly regulated in the first place (I really want to question who gives them the power to operate like a bank without even the most basic security features like OTP...!!!!!)

I would say never use these companies, but sometimes they make minor things such as paying your phone bill a bit easier than credit card or net bank.

[philiveyjr]

Hey hey hey! 
We're talking about BTC wallet and MobiKwik/Paytm wallet both are different(not to confuse between the both)

Yes they block all the wallets to which the fraudsters send the money, so if you are just buying BTC, you will only be sending Rupees from your mobikwik wallet to another person's wallet and that person will send you BTC to your bitcoin wallet., 
So simply buying BTC, you will not be receiving these fraud transactions into your mobikwik wallet. I don't see any reason why they should block a wallet which does not receive any transactions.

I see more of a risk whoever is selling BTC in exchange for Mobikwik or paytm transfers.   

But still safer to stay aware of these types of scams, these mobikwik wallet companies are really badly regulated in the first place (I really want to question who gives them the power to operate like a bank without even the most basic security features like OTP...!!!!!)

I would say never use these companies, but sometimes they make minor things such as paying your phone bill a bit easier than credit card or net bank.

Oh I thought you meant buying Mobiwik by selling btc, in which case you would have money come into your account. To be honest you can still continue buying these things as long its a reputable trader, and there is a surety he has obtained these funds through legal ways and not from another hacked user or something.

[masakali]

Hey hey hey! 
We're talking about BTC wallet and MobiKwik/Paytm wallet both are different(not to confuse between the both)

Yes they block all the wallets to which the fraudsters send the money, so if you are just buying BTC, you will only be sending Rupees from your mobikwik wallet to another person's wallet and that person will send you BTC to your bitcoin wallet., 
So simply buying BTC, you will not be receiving these fraud transactions into your mobikwik wallet. I don't see any reason why they should block a wallet which does not receive any transactions.

I see more of a risk whoever is selling BTC in exchange for Mobikwik or paytm transfers.   

But still safer to stay aware of these types of scams, these mobikwik wallet companies are really badly regulated in the first place (I really want to question who gives them the power to operate like a bank without even the most basic security features like OTP...!!!!!)

I would say never use these companies, but sometimes they make minor things such as paying your phone bill a bit easier than credit card or net bank.

Oh I thought you meant buying Mobiwik by selling btc, in which case you would have money come into your account. To be honest you can still continue buying these things as long its a reputable trader, and there is a surety he has obtained these funds through legal ways and not from another hacked user or something.

That is correct. I have mentioned that too, reputed traders with whom who you have worked before are perfectly fine.

But if you are trading this method on LBC, and find someone with 0-7 prior trades (or maybe IP from some other country) who wants to pay via MobiKwik or Pytm to you then eyebrows must be raised, and you have to be careful since there is a high possibility that they could be operating a hacked account

The worst ordeal is dealing with MObiKwik support! I have 1k INR frozen in an account being scammed this way and I have pretty much given up hope on ever seeing that money in my hand. I have sent them everything from my ID to bank statement  yet they never respond, it feels like I'm dealing with amateurs.

[philiveyjr]

That is correct. I have mentioned that too, reputed traders with whom who you have worked before are perfectly fine.

Being a trader on localbitcoins, I would say not even this is 100% safe  taking into account that they ban all the future wallets that money was transferred too. Most of the times, traders obtain these funds(paytm balance or mobiwik) through trading itself, and they could have bought it from a wrong source themselves. The moment you buy it even from them, you are essentially taking a risk from the original seller to the reputed trader doing a charge back or something. And the reputed trader would likely take a negative rep instead of refunding the money because even he wouldn't want to lose money on a trade. Its just a safer option than buying from a newbie with less number of trades.

[@prashant]

First , here everyone use escrow and i do not understand why you are taking loan from mobikwik/paytm ?.they do not deal with btc in any case and
2nd thing,i have seen your many topic related paytm scam.if you already got an answer then why you are creating unnecessary topic.?

[masakali]

Do you even read and understand stuff before posting utter gibberish to increase your post count?

Use escrow? Im talking about how Mobikwik and Paytm blocks your account days after the escrow is released, after you think the money is safe and the trade is over you wake up to find your account blocked.

What is "taking loan from Paytm"? Senseless smh...  

I dont want any answer; I am just posting this to create awareness of this type of scam.
You may be the most knowledgeable person in this world but there is no need for you to tell me not to create a new thread. Simply do not post here