[Mods if this is in the wrong place please move it appropriately, if it is in the right place please delete this text ^^]There has been an increase in Man In The Middle attacks (herein known as MITM) which are sorely affecting multiple users - both the buyer, seller and also new comers to #Bitcoin-OTC. The attacks seem to go as such:
Buyer = buyer of btc, Seller = seller of btc
Fakebuyer = scammer buying and Fakeseller = scammer selling
SCAMMER creates two IRC accounts on #bitcoin-otc Fakebuyer
both belong to SCAMMER
arrives on IRC looking to buy coins at a great, above the market rate. Seller
falls in to the trap.
arrives, looking to sell at a great below market rate. Buyer
will likely fall in to the trap.
comes to a deal with Buyer
comes to a deal with Seller
will give Fakebuyer
the Paypal address to send payment to. Fakeseller
will give this PP address to Buyer
, who sends payment to that PP address
receives the money believing it is from Fakebuyer
. So releases the bitcoins to Fakebuyer
6--SCAMMER logs both Fakeseller
from IRC. His work is done and he has effectively stolen and laundered money in to bitcoin.
realises he has been scammed and issues a charge back on Seller
, thinking it is Fakeseller
sees this and thinks that Buyer
is a scammer.
9--End of story, Buyer
think each other are scammers when in fact the scammer hit them both, they should
then go to the #bitcoin-court to resolve the issue infront of the tribunal
Both events 1,2 occur concurrently. So the thing to look out for is someone is buying at a great rate while another is selling at a great rate. Both users will likely be unrated although there may be hijacked usernames. Use ;;getrating and ;;ident to check.Remember
- if the price is too good, it is probably a scam. If they are a seller and selling below BTC Exchange rates then chances are it is a scam.
If the trade doesn't feel right, use an escrow service such as clear coin or ask a trusted member of -otc to act as escrow. Or do not trade with the person at all. There are other buyers and sellers and exchanges such as MtGox, BCM, Britcoin ...
Here are some logs of real scams:
If you have any more logs or think I should add anything to this post let me know.
a) As LobsterMan said, ;;ident and ;;getrating are not necessarily good indicators. Checking the ;;trust rating (I have no idea what this is btw)
and getting an email from the Paypal address you are buying from / selling to may also help.
b) Be wary if you're being stalled for no reason by the buyer or seller
c) Never EVER send Bitcoin first. It is a one way payment and can not be charged back. It is best to receive payment first or simply not to use Paypal at all.
Bitraider,RaidinYoBits since 2011