P2P Scams : Where does the government stand

[zasad@]

I've used Binance P2P service before and I have not had such experience and neither have I heard that someone was scammed before. If an issue ever arises there's a dispute center you can always table your complaint to. Binance have access to the chat history, they can see the address, track the transaction on the blockchain and can also request for bank statement if necessary. After reviewing these information I believe they will take the necessary steps to punish the faulted party and see that you get back your funds. If this doesn't happen and a situation where cryptocurrency is not legalized in your country, going to the authorities will only make this worse.

If you pay attention to the Binance platform, in the p2p section, there is always a warning aboit fraud and not releasing your coins until you confirm your fiat payment. And again, if you check the adverts section of the Binance platform, you will understand that there suspended or restricted accounts which I assume are accounts that violated binance terms or accounts that involved in scams.
So, it means that there are different kinds of scams. As long as the cryptocurrency industry is concerned, there must exist scam, that is the reason everyone is supposed to be careful.

Risk number 1 is P2P exchange, risk number 2 is to hold money on a centralized exchange, risk number 3 is the use of bank cards for exchange.
With such risks, the probability of getting problems is very high and you need to distance yourself from these risks as much as possible.

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[virasog]

Risk number 1 is P2P exchange, risk number 2 is to hold money on a centralized exchange, risk number 3 is the use of bank cards for exchange.
With such risks, the probability of getting problems is very high and you need to distance yourself from these risks as much as possible.

Well, P2P is one of the best and quickest way to convert your bitcoins to fiat and vice versa and it is the only option in parts of the world where the bitcoin is not legal.

To minimize the risk, one can deposit a small amount at the centralized exchange, perform a P2P transaction with limited funds only (many small transactions instead of one big transactions) and then (in case they have bought bitcoin), get the bitcoin withdrawn from the centralized exchange to the personal wallet. If one has a large amount to do the conversion, they should follow the process over and over again without exposing too much money at a single time.

[Bushdark]

I've used Binance P2P service before and I have not had such experience and neither have I heard that someone was scammed before. If an issue ever arises there's a dispute center you can always table your complaint to. Binance have access to the chat history, they can see the address, track the transaction on the blockchain and can also request for bank statement if necessary. After reviewing these information I believe they will take the necessary steps to punish the faulted party and see that you get back your funds. If this doesn't happen and a situation where cryptocurrency is not legalized in your country, going to the authorities will only make this worse.

If you pay attention to the Binance platform, in the p2p section, there is always a warning aboit fraud and not releasing your coins until you confirm your fiat payment. And again, if you check the adverts section of the Binance platform, you will understand that there suspended or restricted accounts which I assume are accounts that violated binance terms or accounts that involved in scams.
So, it means that there are different kinds of scams. As long as the cryptocurrency industry is concerned, there must exist scam, that is the reason everyone is supposed to be careful.

Risk number 1 is P2P exchange, risk number 2 is to hold money on a centralized exchange, risk number 3 is the use of bank cards for exchange.
With such risks, the probability of getting problems is very high and you need to distance yourself from these risks as much as possible.

I don't see anything wrong with a centralized exchange if we don't use it as a place to keep our coins. Central exchange is good when we want to sell our coins like swapping and doing staking also. And also centralized exchange is not good for us to use it without precautions because anything can happen that can make any exchange to crash out with out even alerting the investors that are using the exchange for long. Many centralized exchange have crashout so we need to  learn from our mistakes.

[zasad@]

Risk number 1 is P2P exchange, risk number 2 is to hold money on a centralized exchange, risk number 3 is the use of bank cards for exchange.
With such risks, the probability of getting problems is very high and you need to distance yourself from these risks as much as possible.

Well, P2P is one of the best and quickest way to convert your bitcoins to fiat and vice versa and it is the only option in parts of the world where the bitcoin is not legal.

To minimize the risk, one can deposit a small amount at the centralized exchange, perform a P2P transaction with limited funds only (many small transactions instead of one big transactions) and then (in case they have bought bitcoin), get the bitcoin withdrawn from the centralized exchange to the personal wallet. If one has a large amount to do the conversion, they should follow the process over and over again without exposing too much money at a single time.

I will never believe that if there is a demand for cryptocurrency exchange in a country, then there are no exchange options other than p2p.
The exchange transmits data on exchanges to the tax authorities, and even if you use a friend's account, your bank card data is stored in the logs.
And tax control is being strengthened in many countries. What is the risk of paying taxes on your exchanges later if the data gets into the tax office?

[Baofeng]

I think that is a double-edged sword depending on the person they run into.

The difficult thing with cryptocurrencies is knowing which area has jurisdiction over the case in the event of a scam. If you deal with someone via p2p and they have scammed you, depending on where you are staying, then such is enforceable against them. In contrast, if they have dealt with someone who prohibits the utilization of cryptocurrencies, then they cannot enforce such action against them.

Small amounts appear in p2p exchanges, I think that even in Europe it is no more than 10,000 dollars for a bank payment, but most likely these are small amounts of 200-2000 dollars. Unfortunately, due to such damage, it makes no sense to contact the police. I perceive such losses as payment for the lesson.

Yeah, even here, it's just a small amount that even if you report it, might not be worth to look at by the police and the authorities, hence it's going to be difficult for the victims to recover what they have lost during the scams. Again, I myself have been attempted multiply times by scammers in the P2P in Binance and Bybit, but my experience tells me not to send the funds to them and then we try to go to arbitration with the exchanges and they found out that this are indeed scammers and so they block or ban those account. But for those who are inexperience in this field, they might easily fall for it especially when this scammers are the way dictating you what to do and pressuring you to released the crypto right away.

I don't think the main problem here is fraud. If you study well the experience of other users and read their recommendations, you can protect yourself from fraud. The weakest link in this scheme is the banks that will block the trader's account if he often makes p2p exchanges. And banks in all countries work the same way, and then it is very difficult to unblock your account.

It's different though when we talk about banks as they are intermediary. And obviously that's why people are doing P2P to avoid banks and other middleman in people. So take away them for the equation, it's you against the person on the other side of the deal and of course the exchange that will facilitate it.

As here in our country, there are some friendly banks to crypto and I will say that we are lucky.

Maybe the scammer can go and put it in a bank if that is your point. Unfortunately, there are ways that people can create bank accounts using false identification. So they can get away from it even if you as a victim report it to the authority.

[zasad@]

Maybe the scammer can go and put it in a bank if that is your point. Unfortunately, there are ways that people can create bank accounts using false identification. So they can get away from it even if you as a victim report it to the authority.

I will write you an example of how scammers work in Russia for the free issuance of bank cards.

In popular job search resources, there are vacancies for sellers, laborers, loaders with a very high salary. These ads are written for not the most legally literate people.
After the call, the candidate is invited to the office with a mandatory package of documents: passport, Taxpayer Identification Numbers, personal account number in the pension insurance system. And there is nothing suspicious here, this is a standard package of documents when applying for a job. The candidate signs the questionnaire, the application and the power of attorney for the company to make the employee a salary account in the bank. And here, too, there is nothing suspicious and illegal.

But no one will be hired, scammers use this data to issue bank cards for illegal exchange transactions. And then many times they will sell the personal data of the victims.

[jrrsparkles]

But no one will be hired, scammers use this data to issue bank cards for illegal exchange transactions. And then many times they will sell the personal data of the victims.

But it is not possible to open an account without the actual presence of an individual or a mandatory verification process so the bank employee also has a play in this scam. On the other hand, we can find the stolen bank account with all the credentials on the darknet from $25 to $150 depending on the balance of the account which is mostly used by these p2p scammers that is why it is important to not accept payments from freshly created accounts on p2p platforms.

[zasad@]

But no one will be hired, scammers use this data to issue bank cards for illegal exchange transactions. And then many times they will sell the personal data of the victims.

But it is not possible to open an account without the actual presence of an individual or a mandatory verification process so the bank employee also has a play in this scam. On the other hand, we can find the stolen bank account with all the credentials on the darknet from $25 to $150 depending on the balance of the account which is mostly used by these p2p scammers that is why it is important to not accept payments from freshly created accounts on p2p platforms.

And how do you think these credentials get into the darknet
It is in Europe that you need to come to the bank to open an account for you, and in Russia you can submit an application through the bank's application or the bank's website and pick up a bank card at any office of the bank's partners by proxy. In this respect, Russia is much more progressive than other countries. And even if you are not a citizen of the country, you can easily open a bank account.

[Baofeng]

Maybe the scammer can go and put it in a bank if that is your point. Unfortunately, there are ways that people can create bank accounts using false identification. So they can get away from it even if you as a victim report it to the authority.

I will write you an example of how scammers work in Russia for the free issuance of bank cards.

In popular job search resources, there are vacancies for sellers, laborers, loaders with a very high salary. These ads are written for not the most legally literate people.
After the call, the candidate is invited to the office with a mandatory package of documents: passport, Taxpayer Identification Numbers, personal account number in the pension insurance system. And there is nothing suspicious here, this is a standard package of documents when applying for a job. The candidate signs the questionnaire, the application and the power of attorney for the company to make the employee a salary account in the bank. And here, too, there is nothing suspicious and illegal.

But no one will be hired, scammers use this data to issue bank cards for illegal exchange transactions. And then many times they will sell the personal data of the victims.

Yes, same here and that is exactly my point mate. This criminals will go to this lengths to get all the information and this are going to be used and will be at their disposal whenever they created accounts in exchange, maybe hire someone as well to take selfies and that's it.

That's why even here in the Philippines, there are a lot of P2P scams attempts already and for sure there are a lot of victims. But governments and police can't do anything about it even if you get all the information from exchanges because they are all false.

[jrrsparkles]

But no one will be hired, scammers use this data to issue bank cards for illegal exchange transactions. And then many times they will sell the personal data of the victims.

But it is not possible to open an account without the actual presence of an individual or a mandatory verification process so the bank employee also has a play in this scam. On the other hand, we can find the stolen bank account with all the credentials on the darknet from $25 to $150 depending on the balance of the account which is mostly used by these p2p scammers that is why it is important to not accept payments from freshly created accounts on p2p platforms.

And how do you think these credentials get into the darknet
It is in Europe that you need to come to the bank to open an account for you, and in Russia you can submit an application through the bank's application or the bank's website and pick up a bank card at any office of the bank's partners by proxy. In this respect, Russia is much more progressive than other countries. And even if you are not a citizen of the country, you can easily open a bank account.

I remember some banks allow users to open a bank account online if the documents are enough but they will let the account under high restrictions such as low deposit and withdrawal limits, no internet banking or at least can't able to wire over certain limits until the account holder provides all the documents by the bank office.

I guess the banking system becomes more lenient which is one of the reasons why they started to fail at some point.

[virasog]

I remember some banks allow users to open a bank account online if the documents are enough but they will let the account under high restrictions such as low deposit and withdrawal limits, no internet banking or at least can't able to wire over certain limits until the account holder provides all the documents by the bank office.

Even if the account opened online have less deposit/ withdrawals limits, yet the scammers are happy scamming to that limit and getting the free money. Give them any loopholes and they are ready to exploit them.

I guess the banking system becomes more lenient which is one of the reasons why they started to fail at some point.

The banking system is not lenient, they try to give facilities to their customers that they can open accounts and do all the transactions while staying at the comfort of their homes. However, they should introduce more strict measures like thumb verification and facial verifications and due to the advancement of the technology, these things can be done online.

[zasad@]

But no one will be hired, scammers use this data to issue bank cards for illegal exchange transactions. And then many times they will sell the personal data of the victims.

But it is not possible to open an account without the actual presence of an individual or a mandatory verification process so the bank employee also has a play in this scam. On the other hand, we can find the stolen bank account with all the credentials on the darknet from $25 to $150 depending on the balance of the account which is mostly used by these p2p scammers that is why it is important to not accept payments from freshly created accounts on p2p platforms.

And how do you think these credentials get into the darknet
It is in Europe that you need to come to the bank to open an account for you, and in Russia you can submit an application through the bank's application or the bank's website and pick up a bank card at any office of the bank's partners by proxy. In this respect, Russia is much more progressive than other countries. And even if you are not a citizen of the country, you can easily open a bank account.

I remember some banks allow users to open a bank account online if the documents are enough but they will let the account under high restrictions such as low deposit and withdrawal limits, no internet banking or at least can't able to wire over certain limits until the account holder provides all the documents by the bank office.

I guess the banking system becomes more lenient which is one of the reasons why they started to fail at some point.

There is no need to go to the bank office. The courier brings you a bank card and checks all the documents, or you can go through verification with the bank's partners. And there is also a single biometric system, if you are registered in it, then you can verify yourself in any bank online. You don’t even need a bank card to withdraw money, the ATM system recognizes you by your voice and face.This is not the case in the most developed countries

Yes, same here and that is exactly my point mate. This criminals will go to this lengths to get all the information and this are going to be used and will be at their disposal whenever they created accounts in exchange, maybe hire someone as well to take selfies and that's it.

That's why even here in the Philippines, there are a lot of P2P scams attempts already and for sure there are a lot of victims. But governments and police can't do anything about it even if you get all the information from exchanges because they are all false.

Warn everyone you can.

[Baofeng]

Yes, same here and that is exactly my point mate. This criminals will go to this lengths to get all the information and this are going to be used and will be at their disposal whenever they created accounts in exchange, maybe hire someone as well to take selfies and that's it.

That's why even here in the Philippines, there are a lot of P2P scams attempts already and for sure there are a lot of victims. But governments and police can't do anything about it even if you get all the information from exchanges because they are all false.

Warn everyone you can.

Yes, that's what I did, I put a warning in our local board so that no one can fall for it. I even try to track that account after he try to scam me and the exchange favor my side that no money was sent to my wallet, hence it was really a scam attempt.

But it's going to be a long battle for us, scammers will try to create a new account after I exposed one of them. But the battle will continue though, if I encounter a new one, definitely I will give another warning.

[zasad@]

Yes, same here and that is exactly my point mate. This criminals will go to this lengths to get all the information and this are going to be used and will be at their disposal whenever they created accounts in exchange, maybe hire someone as well to take selfies and that's it.

That's why even here in the Philippines, there are a lot of P2P scams attempts already and for sure there are a lot of victims. But governments and police can't do anything about it even if you get all the information from exchanges because they are all false.

Warn everyone you can.

Yes, that's what I did, I put a warning in our local board so that no one can fall for it. I even try to track that account after he try to scam me and the exchange favor my side that no money was sent to my wallet, hence it was really a scam attempt.

But it's going to be a long battle for us, scammers will try to create a new account after I exposed one of them. But the battle will continue though, if I encounter a new one, definitely I will give another warning.

Fraudsters may have dozens of accounts on exchanges, and some in preparation, that are honestly making exchanges and gaining positive reviews.
It is impossible to track all scammers, but exchanges should be made only with verified participants who have been doing this for more than a year, but their prices will be lower than those of scammers.

[Sarrim02]

Yeah sure, We can't blame to the technology, but we have to strict and alert from the scammers. Because scammers are everywhere in the word. P2P is the most powerful things where we can use the money to deposit are withdrawn. But there is also some technical things to understand that how we can alert from scammers. Please choose the best person with many rating and positive reviews, so you can be safe in this process too.

[zasad@]

Yeah sure, We can't blame to the technology, but we have to strict and alert from the scammers. Because scammers are everywhere in the word. P2P is the most powerful things where we can use the money to deposit are withdrawn. But there is also some technical things to understand that how we can alert from scammers. Please choose the best person with many rating and positive reviews, so you can be safe in this process too.

You will understand how P2P exchanges work. The exchange only blocks cryptocurrencies, but it does not control money transfers. Even people on P2P sites with a lot of reviews use other people's bank accounts for payments.
And as soon as fraud occurs in this payment chain, many bank accounts that were linked by transfers may be blocked. And then the bank or police officers will find out the reasons for such payments.

[Baofeng]

Yeah sure, We can't blame to the technology, but we have to strict and alert from the scammers. Because scammers are everywhere in the word. P2P is the most powerful things where we can use the money to deposit are withdrawn. But there is also some technical things to understand that how we can alert from scammers. Please choose the best person with many rating and positive reviews, so you can be safe in this process too.

Yeah, it could be one hint that the person or buyer is not a scammer, but still though you need to be very cautious. And it's good that exchange have recorded our transactions, and one thing I do is to look at it and see who I might have been transacting in the past.

And then I will try to look for that person if he is available during the time that I needed a quick exchange. Otherwise I will look for others who have a good rating and of course his exchange rate is as competitive as others and maybe try just small amount and see how it goes and rate him base on my experience.

[virasog]

Yeah sure, We can't blame to the technology, but we have to strict and alert from the scammers. Because scammers are everywhere in the word. P2P is the most powerful things where we can use the money to deposit are withdrawn. But there is also some technical things to understand that how we can alert from scammers. Please choose the best person with many rating and positive reviews, so you can be safe in this process too.

You will understand how P2P exchanges work. The exchange only blocks cryptocurrencies, but it does not control money transfers. Even people on P2P sites with a lot of reviews use other people's bank accounts for payments.
And as soon as fraud occurs in this payment chain, many bank accounts that were linked by transfers may be blocked. And then the bank or police officers will find out the reasons for such payments.

But all this does not happen in reality. Most government does not support cryptocurrencies. So they won't help you out in case you were scammed through P2P.

Also the scammers at P2P are clever enough that they make the other party close the deal without getting the payment. Once you close the deal, the escrow is released and then even binance can't help you.

[zasad@]

Yeah sure, We can't blame to the technology, but we have to strict and alert from the scammers. Because scammers are everywhere in the word. P2P is the most powerful things where we can use the money to deposit are withdrawn. But there is also some technical things to understand that how we can alert from scammers. Please choose the best person with many rating and positive reviews, so you can be safe in this process too.

You will understand how P2P exchanges work. The exchange only blocks cryptocurrencies, but it does not control money transfers. Even people on P2P sites with a lot of reviews use other people's bank accounts for payments.
And as soon as fraud occurs in this payment chain, many bank accounts that were linked by transfers may be blocked. And then the bank or police officers will find out the reasons for such payments.

But all this does not happen in reality. Most government does not support cryptocurrencies. So they won't help you out in case you were scammed through P2P.

Also the scammers at P2P are clever enough that they make the other party close the deal without getting the payment. Once you close the deal, the escrow is released and then even binance can't help you.

Any Internet fraud is very poorly investigated in many countries. If the criminal makes a mistake, he will be caught several years later, but the chance of returning the stolen money will be zero.
Even if you are an experienced user, scammers will not be able to deceive you, but it is very easy to get your account blocked.

I gave a simple example. You sold your bitcoins on the exchange via P2P and received money on your card. A year later, the owner of the bank card (drop) sues you and asks you to return the erroneous transfer. And you will lose the trial because you cannot prove in any way that you sent the bitcoins to the drop. In Russia this period is 3 years.

[Coin_trader]

This is good timing about this inquiry since Binance already launch program dedicated o fight this scammers on P2P. They are now giving reward to every P2P scammer that you spotted by reporting them on this form https://www.binance.com/en/survey/728ee8020925499ea62224c4a7cd3d8d.

You can have extra tokens by reporting this scammers! I believe this will reduce scammers since everyone will be eager to report them while they have funds that can be seized by Binance once report is proven.

The program is called Anti-Scam Ninja Program