My friend got arrested in a p2p scam

[gabbie2010]

First time I know of a problem as mentioned by OP.
Binance has some recommendations to watch out for scammers, it might be worth taking a look and being cautious.
It's a shame the problem for P2P users where their bitcoin countries are banned.

I am a Binance P2P user in Venezuela and so far everything has gone very well with my exchanges and sometimes I usually trade with the same people.
The Binance system is safe for both parties, the problem is when the bank holds your money. I would have to dig deeper to find out how scams happen.

A few days ago I made two transfers to a Binance user to send money to Brazil and fortunately it was successful and I told myself that Binance P2P users are creating new forms of business and income and in addition to a crypto culture where our reputation is an endorsement to make an online deal like the one I did and other people often do.

As of now, I also use the binance P2P services and not other p2p platforms. I feel more confident using this platform. For other p2p services, you don't know if their reviews or feedback are genuine. So you should really be very cautious transacting them as in this digital age, everyone can pull off a scheme as they don't care who they screwed, but the money that they can milk out.

I also used binance Express P2P service which I feel is more secured and safe because I am sure binance must have scrutinized traders who engaged in buying and selling of coins, thus the issue of hacking wouldn't arises, of course once I placed a sell order on express it is binance that will match me with a credible buyer who must have a good feedback and reviews, I think the OP should advice his friend to utilize Binance Express P2P to avoid future occurrence, although KYC might be required which I think shouldn't be a problem as far as he freelances without fraud.

[1714913839]

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[1714913839]

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[bryant.coleman]

I have always used P2P platforms to convert my crypto to fiat (and vice versa) and every now and then I face issues. Fortunately, so far I have avoided serious trouble, because I only sell my coins to the top buyers with good feedback. But this is not a 100% risk-free method. Recently a lot of accounts of inactive users are getting hacked and the criminals are using these accounts to do scams. So be careful when you deal with anyone new to you, even if he has good feedback and trust rating. Check his feedback score and see whether all of them are recent.

[Wakate]

My friend is a digital freelance marketer. He worked in marketplaces like Fiverr and Upwork. He has been working for the last 3 years. He has some fixed clients who work without the marketplace because of marketplace fees. They work via skype and email. There was no problem recently. He got new clints through his personal website. And the Clints give him his payment through bitcoin and my friends approve it. Then he asked me to exchange it for cash.

I didn't have enough cash, otherwise I would have bought it. Thats why I suggested him some p2p services like Binance, Paxful, and local bitcoins, but he had a problem with KYC. He didn't want to provide KYC. That is why he can't use binance. Now I don't want to share the exact name, sorry for that, because I used that service but didn't fall into any problems. Though my friend knows how to use online sites, he tried his own account on a platform and did basic kyc. Though it has a limit, the limit is enough for him.

Now he is dealing with someone who gives a good return and is also our country's man. My friend fixed a deal with him and the deal will be a bank transaction. The scammer sent money to my friend and my friend got a deposit message from his bank.

Then my friend released bitcoin. Here is everything perfect. But the problem starts from now. After 5 hours in the afternoon, my friend goes to the bank to withdraw the cash because he needs it. The bank manager says the money is in hold because they got information from the sending branch of the bank that the account holder of the sender has filed a case about this transaction. This transaction is not made via the account holder. That means this has become a hacking case.

And after 1 hour, police came and arrested my friends for hacking. But my friends don't hack. After the introgression My friends tell them everything and show them proof, then they trust them. But my friend uses bitcoin and bitcoin is illegal in our country. He is a freelancer, and in our country, freelancers get priority from the government. Cyber experts got proof that he was taking payments in bitcoin because he had a problem with paypal. And the clints approach him. Then he was released on a bail basis. And cyber experts are now working on it and the case is running. 3 days ago, my friends came to me and shared everything. But the thing he didn't tell the police was that I suggested him about those sites and I also had btc. He understands that the site has no problems, but the scammers are bad people.

Now I feel worried about whether it is truly safe to use P2P. If we fall for such a kind of scam, Though I still didn't and I always verified and 100+ order completed people plus checked his review and 100% review gained people. And I want to know if you guys have any such experience on p2p? Please share your story.

This is a very serious case and it can extend to another serious level if serious claim is found. We need to be careful about about running transactions out of the box cause this is how scammers used to accomplish there evil deed while the person involved will be unaware.
Although I have not had any problem with p2p exchange that requires kyc for one to run transaction.

[ene1980]

That's the real concern during buying or selling Bitcoin peer to peer. Actually, it's not possible to determine bank transactions either it has been coming from any suspicious sources. The only way is a peer-to-peer deal should be done with a trusted person and we should get help from an experienced person.

Can you really trust anyone when doing peer to peer transaction with fiat involved, i highly doubt i will trust anyone like that unless it is a reputed person from this forum who is taking care of his account and has some successful trades. I did use other platforms purchasing cards and other things with cryptocurrency but i never tried to accept bank transfer from any strangers because it will end up creating issues if i am accepting funds from illegal sources.

I know about Binance P2P transactions and i want to know if anyone tried that and do they ask for mandatory KYC for everyone to make these transactions.

[osasshem]

Now he is dealing with someone who gives a good return and is also our country's man. My friend fixed a deal with him and the deal will be a bank transaction. The scammer sent money to my friend and my friend got a deposit message from his bank.

Over the years I have used the p2p methods of withdrawing of Bitcoin and Etherium, it has been with the fear of something like this or similar. If we are patient and contented with what we have and what is ours, we won't fall into such event. Knowing very well what the actual price for exchanging is, why look for more profit? That moment when you know something is cost within the range of $20 - $22 for sale, and you see someone placing adverts at $35 above (for excess profit) or $3 below (loss of profit and almost all capital), then, you should be vigilant of such an advert. There is no businessman that wants to give out all of his profits for some sort of deal.
No matter how it is, the p2p system was made for a smooth transaction to take place with ease, giving room to byepass the restrictions made by the government of a particular country. It doesn't mean the scammers won't try to device some means of defrauding people, but if we play smart and use the available safe resources provided, we will see the beauty of it all.

[Gbniman]

Beware of These P2P Scams

Below, we inform our users about common scams that happen during Bitcoin transactions such as P2P trading. We share this information in hopes that our users become wiser about the use of Bitcoin and trading platforms by avoiding these scenarios. Part of enhancing security for crypto is the task of boosting the security awareness for its users because ultimately, you have the most important role when it comes to keeping crypto secure.
Trade P2P Safely with Tips from the Pros

1. Romance Scams
The first of the three man-in-the-middle (MITM) scam scenarios we will feature, a romance scam preys on your emotions to distract you from a scammer’s true, nefarious motive. This may sound like something we will not fall for at first glance, but this scheme is more widespread than you think. In 2019, over 25,000 victims reported a total of $201 million in losses from romance scams, the second-most reported crime to the FBI that year, according to the U.S. Fair Trade Commission.

In this scenario, a scammer finds victims via dating apps like Tinder and forges online relationships with them, building trust over time. At one point, the scammer will manipulate the victim into helping him with his financial issues by sending some Bitcoin or other crypto. What the victim doesn’t know is that the scammer has provided the details of an unrelated crypto seller, who will then unknowingly send money from the victim to the scammer, thinking that it’s a typical crypto-to-cash transaction.

At this point, the scammer runs away with the money. The victim, realizing the scheme, will try to cancel the transaction and report the incident to the police, which will then proceed to reverse the transaction and punish the crypto seller without getting to the actual scammer.

How to Avoid: In P2P platforms with escrow services, like Binance P2P, this scenario can be prevented, as the seller and the buyer will know each other’s true details before proceeding with the transaction. However, this can be harder to combat if the scammer has manipulated you emotionally into believing everything he says. Ultimately, you should walk away from a financial transaction like this when things start to be a bit suspicious.

2. Investment Scams
If romance scams deal with emotions towards a fictitious “lover,” what drives this MITM scam scenario is an individual’s desire to quickly profit from an investment. Unfortunately, with the boom of crypto prices earlier this year, investment scams are on the rise. Between October 2020 and March 2021, the FTC received about 7,000 scam reports of this nature, 12x the figure a year ago, causing $80 million in losses.

In this scenario, a scammer finds victims who are looking for quick-profit Bitcoin investments and entices them with “guaranteed” gains that they should get into ASAP. It can involve fake apps and websites that pretend to show a person’s profits. At some point, the scammer will ask the victim to send money to his account, in exchange for the Bitcoin he earned. Unknown to the victim, the account is actually owned by a crypto seller unwittingly set up by the scammer to be the middle man in the scam. The victim sends the money to the crypto seller, who then unknowingly sends the Bitcoin to the scammer.

Similar to the previous scenario, after the scammer runs away with the money, the victim will report the incident to the police, who will then punish the crypto seller for a crime he did not commit.

How to Avoid: In this scenario, it is the responsibility of a person entering into an investment to verify if it is legitimate. The mentality here is that when something is too good to be true, it usually is, especially when it comes to money. On the crypto seller’s side, it pays to do due diligence on the people you transact with, which is made easier when it comes to platforms with identity verification practices like Binance P2P. Make sure the Binance name and Bank name are the same to avoid these issues.

3. Ecommerce Scams
This modified form of this MITM scheme involves e-commerce transactions on dubious platforms. As the adoption of Bitcoin as a global payment method is still underway, scammers can see an opportunity to entice unwitting victims with low prices on the things they want to buy.

For instance, a scammer finds a person who is looking to buy an item online. The scammer offers very low prices on that item to the victim, who then reaches out to inquire about the item. When the time comes for the victim to pay for the item, the scammer presents him with a crypto seller’s information, claiming that it’s his account. Once a victim pays for the item, the crypto seller then unknowingly sends crypto to the scammer on the other end. Once the scammer exits, the story ends badly for the victim and the crypto seller, as in previous scenarios.

How to Avoid: To add to the previous points raised in MITM schemes, we like to point out that there are legitimate payment options for buying items online using crypto, such as Binance Pay. Make sure the Binance name and Bank name are the same to avoid these issues.

4. Fake Receipt Scams
When doing P2P transactions online, it’s important to closely check the information being sent to you by your counterparty. Sometimes, scammers manipulate screenshots and other photos to claim that they have done their part of the deal and to pressure you into doing yours as well. Once you comply with a scammers’ pressure, without verifying yourself if you have indeed received the money he sent, you will end up losing money for nothing, and you will have a hard time correcting it.

How to Avoid: Always make sure to check your bank account or wallet to confirm that you indeed have received any money that’s supposed to come your way from a P2P transaction.

5. Chargeback Scams
Sometimes, a scammer can take advantage of the chargeback features on some payment platforms to defraud his counterparty in a P2P transaction. In other words, after a P2P deal is completed, this scammer will trigger this chargeback and claim the funds to cancel or reverse the initial payment he made. This happens especially if the seller rushes into approving the transaction without carefully checking that the money is already in his bank account or wallet.

How to Avoid: Make it a habit to keep screenshots of your transactions as proof that they were completed, to combat a scammer’s chargeback attempts, especially when contacting customer support about cases like this.

6. Wrong Transfer Scams
Sometimes, after a P2P transaction is completed, a scammer may pull off an attempt to void the transaction. This may involve calling his bank to cancel the transaction, claiming that the fund transfer is wrong or that his account was stolen. Once a seller loses his money this way, the scammer then scares the seller into not reporting the cancellation to the police, by saying that cryptocurrency is “illegal” or through some other claim.
I'm sure with this option here your friend might get involved in one of this action which is very bad.

[MFahad]

Damn, that reversal in transaction. That's why whenever I'm transacting online, I make sure that it won't from a p2p deal and if I do, it's from the exchanges.
I feel bad for your friend and as well you because you seem to be worried what if your friend started to talk about you to the police that you also own it.

P2P is not bad as a whole but there are always some bad people due to which we assume that whole P2P market is bad.

I have traded many times on P2P and found many good persons too.

[worldofcoins]

It looks like the victim is going to experience way worse since Bitcoin is illegal in their country. If the scam is done differently, he could have been grateful even if his money is taken by this scammer as long as authorities are not involved here. This could lead to a thorough investigation that authorities might find out this isn't his first Bitcoin transaction.

Anyway, bailing out I guess is an option for him. Hope your friend will be able to work it out.

In case the bitcoin being illegal in the country and investigation authorities showing leniency means the authorities did a good background check on the guy and didn't find anything suspicious with their activity since they're using an illegal resource.

but I'm curious did your friend gets to keep the money or it will be returned to the person who filed for the hacked transaction through their bank.

[ranaprime]

I use P2P but not face such type of problem. But we should all be careful. Because it has not been approved in our country yet, so the awareness is the only way. Thank you for sharing a new experience we didn't know before. However, I think that if use p2p with small amount of money then nothing will be happen.

[Hasan986]

P2P Exchange is a lot of risk, where crypt is not legal. If the government wants to trap you in P2P, it can sue you for money laundering. They can easily catch you as a buyer or seller. Crypto is illegal in many countries of the world. But there will come a time when everyone will accept this crypto.

[Mahanton]

Damn, that reversal in transaction. That's why whenever I'm transacting online, I make sure that it won't from a p2p deal and if I do, it's from the exchanges.
I feel bad for your friend and as well you because you seem to be worried what if your friend started to talk about you to the police that you also own it.

P2P is not bad as a whole but there are always some bad people due to which we assume that whole P2P market is bad.

I have traded many times on P2P and found many good persons too.

As always on where certain things becomes bad when theres something bad that do related into it and its normal for people to treat up the same thing or make it general which is really a very common
reaction or perception for most people so its not surprising but if we do really mind off about p2p then it isnt really a scam but only to those other users who are making those bullshitness
which do correlates with illegal transaction or on where those funds came from and to those who do able to engage or transact with it will definitely be having some problems
later on once get caught.

[BTCtester.com]

There are major risks using central exchanges:

• They might block withdrawal
• They get hacked and your deposits are gone
• Their client database is hacked or a corrupt employee sells it. Then it's sold in the darknet to local criminals which knock on your door to get your coins
• your coins are trackable, so this is a privacy concern

So decentral peer to peer exchanges might be the better choice: Your keys, your bitcoin!

[Shenzou]

Every thing in this world is subject to being manipulated and exerted as a scam, and behold the financial system that banks are built upon, and unfortunaly for your friend he got the short end of the the stick, and probably this is all his fault probably he was trying to get some unreasonable deals that he went on to do a transaction with someone who does not have a reputation, and that is what you should be looking for with any p2p transaction because this guy is clearly have been exploiting this trick a lot of times.

[Emitdama]

Now I feel worried about whether it is truly safe to use P2P. If we fall for such a kind of scam, Though I still didn't and I always verified and 100+ order completed people plus checked his review and 100% review gained people. And I want to know if you guys have any such experience on p2p? Please share your story.

Yeah, it seems currently P2P is serious threat for users in developing countries because they are not authorizing this crypto just because of this many users not able to use legal methods and platforms for this, and they faced these difficulties recently we also have few cases like this, but these was not much as like this hopefully now you and your friend will be use these very carefully even crypto is illegal in your country.

Second option is just tried to through few exchanges which allow your country for fiat because still we have few which are working but still need KYC because they also have few regulations which need to fill before doing any business from anywhere.

[Gozie51]

P2P Exchange is a lot of risk, where crypt is not legal. If the government wants to trap you in P2P, it can sue you for money laundering. They can easily catch you as a buyer or seller. Crypto is illegal in many countries of the world. But there will come a time when everyone will accept this crypto.

Centralized exchange can be tracked by government in different ways and one of them is to make kyc a compulsory registration requirement to the exchange. But we can't stop such if we are cypto enthusiast as we may have it unavoidable for government who have ban bitcoin but a personal trading channel is not traceable. There are personal trading channels in our local environment.

[Rehan Zakir]

There are different platforms that provide services of P2P (People 2 people). And big crypto community is using these service for exchanging crypto with cash and cash with crypto. When traders complete their transaction these service providing platforms charged a small fee. They are secure platforms and verifies users through their identity card. But they did not check that a user is involved in any illegal activity or not. That's why mostly traders face issues after making transactions.

[sayam]

The incident is very sad & disappointing. Now I'm feeling afraid to deal with P2P. Even that can happen to me. Anyone who is in such a situation will only understand how irritating it can be. However, from now on we have to deal with P2P very carefully.

[BD Crypto]

This is the biggest problem for crypto.And we are really waiting for that time when our country will accept digital currency like Bitcoin,Litecoin and others.

For this crypto transections should be more secured and there should be no scammers.

[RealMalatesta]

Now I feel worried about whether it is truly safe to use P2P. If we fall for such a kind of scam, Though I still didn't and I always verified and 100+ order completed people plus checked his review and 100% review gained people. And I want to know if you guys have any such experience on p2p? Please share your story.

I’m not going to blame your friend for what happened, first he doesn't know who he was dealing with on the P2P exchange, so it's quite possible that anyone can fall into such problem.That is why I am always very careful with the people I deal with. Most of the people I have been buying and selling my cryptocurrency to are people that I know very well and I’m very sure of what they can do and what they cannot do.

I know a lot of P2P exchanges but I hardly make use of them,’ cause I have friends who are into Bitcoin trading and working as personal exchanges, so I usually do business with them. It’s really important to be careful when trading with anyone, because they can create problems for you.