P2P Scams are on the rise! Be Careful!

[pakhitheboss]

I recently came across a few articles and a few Youtube videos about P2P scams. These scams are on the rise as the majority of Indian crypto users have shifted to DEX. We all know scammers are everywhere and they come up with new ways to scam people. There is a new P2P scam that is on the rise and especially targets those who are new to this industry.

How it is done?

A scammer goes ahead and hacks a Bank account, then registers himself on a DEX and creates an advertisement for buying cryptocurrency. You as a user on that DEX see that advertisement and agree to sell your crypto. Everything goes smoothly and you receive your INR in your Bank account.  

What happens next?

A few days pass by and you try to make a normal purchase using your Bank account but the transaction gets declined. This happens quite a few times and you visit your bank. Your bank says your account has been frozen as the Police requested and now you need to contact them.

You have now no idea what is happening. You contact the Police and they say that the money you received was from a hacked bank account. Imagine what might be going through your mind as you not only lost your cryptocurrency but also the fiat.

The worst part of such a situation is that you might be staying in South India and the hacked Bank account owner stays in North India. You now need to visit the North Indian state police where the FIR was raised for questioning. If you do not then the situation will escalate further.

Checklist to avoid P2P scams?

• Check the number of trades of the merchant, the higher the better.
• Check feedback the more it is positive the better will be the trade.
• Check if the account is verified.
• Avoid above average INR value for crypto offerings.
• Check whether the merchant is verified or not.

After going through the above checklist still, you can get scammed. Therefore it is better to use an Indian exchange where the amount gets directly credited to your Bank account after you sell it to the exchange.

If you have any suggestions that can be added to the checklist then do share them. I would add it to the above list so that newbies can follow them.

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[elevates]

This is scary! It is always better to use a reputed exchange like Binance. They have thier own verification method for merchants. I would recommend using verified merchants and always ask for PAN card from them. When you make a purchase they generally ask for PAN card in that same manner when sell cryptocurrency you can also ask them. This is India & fake PAN card can be generated still a scammer would always hesitate to share a PAN card.

[Bureau]

I have never used a P2P DEX as I have never earned and invested till now in Bitcoin or any other cryptocurrencies. I am still learning and OP your post is a eye opener for people like me. I never knew that you can get scammed in such a way on a exchange. Thanks once again for sharing such a critical information with everyone.
 

[elevates]

I have never used a P2P DEX as I have never earned and invested till now in Bitcoin or any other cryptocurrencies. I am still learning and OP your post is a eye opener for people like me. I never knew that you can get scammed in such a way on a exchange. Thanks once again for sharing such a critical information with everyone.
 

Stay safe and if possible share this scam with your friends. As you have not invested a dime then you are another moron from India who who fears the latest in technology & consequences. A small amount of INR 500 can give a return.of 50k. What you need is patience and sheer determination. Think about it!

[pakhitheboss]

Thanks once again for sharing such a critical information with everyone.  

If you want to know more about the existing P2P scams then do a search on Twitter there is a good number of users who are facing this problem.

This is scary! It is always better to use a reputed exchange like Binance. They have thier own verification method for merchants. I would recommend using verified merchants and always ask for PAN card from them. When you make a purchase they generally ask for PAN card in that same manner when sell cryptocurrency you can also ask them. This is India & fake PAN card can be generated still a scammer would always hesitate to share a PAN card.

I do not think asking for a PAN card from the merchant will solve this issue. If they can hack a bank account, imagine how easy it is for them to get a duplicate PAN card. You can give it a try but I would always prefer a verified merchant or a non P2P exchange. For few amount of INR I do not want to lose everything.

[avikz]

Thanks for the topic. I have recently seen a video from former Crypto Kanoon owner about the same topic. Watch it here,

https://www.youtube.com/watch?v=L4a7Y303m-o

When it comes to converting Bitcoin to fiat, I do not trust DEX at all. That's why I have never traded on Bisq. because you never know where the money is coming from. It could very well be a hacked account. I really liked LocalBitcoins because they have a tier-based KYC verification service and I always used to trade with old members with great reputations.

Now, with the closing of this platform and also with the closing of Paxful, it has become very difficult for Indians to convert to fiat money. Any other platform suggestions?

[pakhitheboss]

When it comes to converting Bitcoin to fiat, I do not trust DEX at all. That's why I have never traded on Bisq. because you never know where the money is coming from. It could very well be a hacked account. I really liked LocalBitcoins because they have a tier-based KYC verification service and I always used to trade with old members with great reputations.

Now, with the closing of this platform and also with the closing of Paxful, it has become very difficult for Indians to convert to fiat money. Any other platform suggestions?

It is all over Twitter and Youtube, a few influencers themselves have got scammed. DEX is not that bad if you are trading with a reputed seller, the reason these guys got scammed is because they went mostly for the higher BTC/INR conversion offered by the scammer. You can try Binance P2P and trade only with verified merchants.

[avikz]

When it comes to converting Bitcoin to fiat, I do not trust DEX at all. That's why I have never traded on Bisq. because you never know where the money is coming from. It could very well be a hacked account. I really liked LocalBitcoins because they have a tier-based KYC verification service and I always used to trade with old members with great reputations.

Now, with the closing of this platform and also with the closing of Paxful, it has become very difficult for Indians to convert to fiat money. Any other platform suggestions?

It is all over Twitter and Youtube, a few influencers themselves have got scammed. DEX is not that bad if you are trading with a reputed seller, the reason these guys got scammed is because they went mostly for the higher BTC/INR conversion offered by the scammer. You can try Binance P2P and trade only with verified merchants.

I have considered that option but I believe Binance has some contract with Wazirx which is an Indian crypto exchange. I am trying to avoid Indian crypto exchanges to be honest. Can you confirm on that?

It seems the exit of localbitcoins has created a big issue for this market. It's like a jailbreak happened and all scammers are very actively trying to push their black to commoners. Not a good time for P2P crypto trading.

[pakhitheboss]

I have considered that option but I believe Binance has some contract with Wazirx which is an Indian crypto exchange. I am trying to avoid Indian crypto exchanges to be honest. Can you confirm on that?

It seems the exit of localbitcoins has created a big issue for this market. It's like a jailbreak happened and all scammers are very actively trying to push their black to commoners. Not a good time for P2P crypto trading.

WazirX is part of Binance ecosystem, they bought it if I am not wrong in 2020 and yes it is an Indian exchange. To my knowledge it is better to avoid and P2P exchange at the moment. These scammers have multiple merchant ID and user IDs. Using which they are creating fake reviews and rating. At the moment P2P is messed up.

[elevates]

Did anyone check this thread on Twitter. It seems one of the cryptocurrency influencers mother's bank account got hacked. The hackers found out a small loop hole of Adhar card and use it to hack the account.

This only happens when you connect your Bank account to Adhar card and if the biometric has not been turned off. This feature was meant yo help those who want to withdraw cash using the thumb impression. Now the hackers have found a way to copy that thumb impression but the main question is, why did not the Bank verify the photo.

This hack has now gone viral & mainstream media is covering it.

[pakhitheboss]

Did anyone check this thread on Twitter. It seems one of the cryptocurrency influencers mother's bank account got hacked. The hackers found out a small loop hole of Adhar card and use it to hack the account.

This only happens when you connect your Bank account to Adhar card and if the biometric has not been turned off. This feature was meant yo help those who want to withdraw cash using the thumb impression. Now the hackers have found a way to copy that thumb impression but the main question is, why did not the Bank verify the photo.

This hack has now got viral & mainstream media is covering it.

Too many questions on my related to this incident.

1. Why did the account holder did not get any notification for debit on the mobile number?
2. How were the hackers able to copy the finger prints?
3. Why are the biometric authentication are kept open by default?

My point of view after going through the thread is that the Bank, in this case a PSU is to be blamed for being complacent with security.

[Bureau]

What Adhar card can be hacked? I had the impression that it was un hackable! Big suprise to me as one of the founders of Infosys was behind it. I think he is still the head of UDPI and was one of the front runners on integrating it to a bank account.

To date they have been asking every Indian to integrate Adhar to the PAN card. I imagine technology like this is not safe anymore. But, what can you do the government forces you to follow the rules. 

[pawanjain]

Did anyone check this thread on Twitter. It seems one of the cryptocurrency influencers mother's bank account got hacked. The hackers found out a small loop hole of Adhar card and use it to hack the account.

This only happens when you connect your Bank account to Adhar card and if the biometric has not been turned off. This feature was meant yo help those who want to withdraw cash using the thumb impression. Now the hackers have found a way to copy that thumb impression but the main question is, why did not the Bank verify the photo.

This hack has now got viral & mainstream media is covering it.

Too many questions on my related to this incident.

1. Why did the account holder did not get any notification for debit on the mobile number?
2. How were the hackers able to copy the finger prints?
3. Why are the biometric authentication are kept open by default?

My point of view after going through the thread is that the Bank, in this case a PSU is to be blamed for being complacent with security.

Fingerprints and other biometric data is stored digitally and the scammer had stolen this data from government websites.
He then used this data to hack user's bank accounts and proceed with the transactions.
Biometric authentication is enough to proceed with withdrawals and send money and so they were successful in making the transactions.

1. They would have got the notification but couldn't do anything since transactions were already authenticated.
Or may be the scammers turned off SMS notifications or something.

2. Already answered.

3. Its more convenient to authenticate may be that's why.

But this shows how everything has a vulnerability and can be exploited to created disasters.

[elevates]

Binance P2P is where all the scams are happening. A lot of Twitter users are still reporting P0P scams. While going through those tweets I realized that many agreed on doing transactions offline. By offline I meant a user contacts the Merchant using the Binance platform and wants the money transferred through UPI.

The merchant if he is a scammer reaches the users on the UPI phone number either through SMS or Whatsapp and makes the deal. They also ask the user to cancel the order on Binance. In such cases, Binance is helpless as the trade was canceled by the user. I do not know why people are so stupid.

That is why you should avoid offline trades. I also found out that Binance takes a certain amount as a deposit in BUSD from verified merchants apart from level 2 verification. After that, these merchants get a verified yellow tick. It is always better to use a verified merchant than the non-verified one.

 

[Bureau]

I somehow feel this is a newbie issue. I am also a newbie but I haven't been greedy like these users have been.

Actually I have been following this situation on Twitter, YouTube and other multiple social media platforms. I have come to conclusion that those who are suffering due to this scam are:

• Greedy
• Brand new to this industry
• Crazy for INR
• Think that they know everything
• not litterate/understand

Thanks.

[elevates]

There have been a lot of rumors circulating within the community on different platforms. One of those is that the Government of India is behind all of these scams. Due to the simple reason that most cases being reported by Binance P2P user's. The Indian government like others is trying to create a negative image by harassing users of Binance. That is not correct as there are users from other International exchanges that have reported the same problem. Since, the numbers are less as compared to Binance we are not hearing about them. The reason is simple Binance has more known among Indians than others.

I joined this Telegram group P2P Victims: Bank sezied, dedicated to this issue. The conducted a poll on the same issue and below is the result of this poll. There are more than 1000 members in this channel.



Clearly! It is not only Binance but other exchanges too. Please use due diligence before intiating a trade on any P2P exchanges.
 

[Bureau]

I believe the government is involved in this scam. Why are suddenly only accounts that are trading on P2P exchanges being targeted? Do you mean these Jamtara (Netflix series) likes guys are either not being apprehended or they have the support of the state government? Above all, the possibility is that our security agencies are helpless in stopping account hacks.

I won't agree with any of those arguments. I have a feeling that the government has indirect links to these crimes to stop Indians from entering into the world of a decentralized lifestyle. A few days back I came across an image on a social platform wherein that said about the population that makes regular crypto transactions. I was surprised to see the Indian population on that list.

[elevates]

That is a good argument and an excellent analysis! It is a possibility that you might accept, but I won't. I have shared the image and if you do not believe you can join the channel. Every day many new users report the same issue from different exchanges. If you read those reasons you will realize most of them are the user's fault and the problems they are going through now is unimaginable.

[Bureau]

Now I know from where you got the idea to create a topic on Pig Butchering scam. I saw your thread on beginners and help and I was wondering how did you find out about this scam? It seems you have been working around it for sometime now. 

[Learn Bitcoin]

Since crypto is not banned in India, Why not do real P2P instead of Fake P2P on CEX? I guess India has the large number of Crypto currency users, and it won't be hard for you to find a couple of buyers/sellers in your area whom you can deal with without involving 3rd parties. Of course, you have to be careful in this case as well. If you care much about your privacy, I don't think you also like CEX. Be careful when you meet buyer or seller. You can follow some tips like; Meet them on a public place and never visit the place you don't know or never visited before. I guess there are bunch of Websites in India where people sell goods and they are used to meet random people to sell their goods. You can do the same for crypto currency as well to avoid scams. Just my 2 cents!