P2P Scams : Where does the government stand

[zasad@]

Does this gives a free hand to scammers as they know that they cannot be punished by a court of law  

Unfortunately, yes. There are no checks and balances in place anywhere, so while legitimate users' accounts are being shut down by exchanges who proceed to keep the money, there are also individual scammers (the high-tech thieves) who steal from people for a living, and nobody from the crypto platforms to the social media apps to the countries are doing anything to quash it.

I monitor the methods of fraud in my country. There are a lot of phone scams in which the scammer asks the victim to transfer money to another account. It can be a transfer of money to a drop account or a purchase of a cryptocurrency, but it is impossible to fight against this, because the money will be quickly cashed out. All banks have instructions on how not to become a victim of a scammer, but fools still believe phone scammers.

For this purpose, Binance insists that all P2P communication should happen on the Binance chat window and not take that conversation out of the Binance to any third party platform. If the buyer or the seller asks to have a phone call where he tells another account[ s] to transfer the money, Binance can have no control or proof on this and in case of dispute/scam, Binance may not be able to help the victim.

Yes, the government won't be able to help either because of the no legalization of cryptocurrencies, but we have to take as many precautions ourselves to prevent any sort of fraud or scam with us through P2P platforms.

This does not protect against fraud. The fraudster will find the victim in the telegram, and then on the purchased account on the Binance exchange, he will find an application for the purchase of cryptocurrency.
The scammer will give the victim the details of the P2P partner of Binance and the victim will transfer the money to specified bank account. Binance will unlock bitcoins and the scammer will disappear.
Then the victim will write a statement to the police about the P2P participant in the Binance deal.

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[Bushdark]

Does this gives a free hand to scammers as they know that they cannot be punished by a court of law  

Unfortunately, yes. There are no checks and balances in place anywhere, so while legitimate users' accounts are being shut down by exchanges who proceed to keep the money, there are also individual scammers (the high-tech thieves) who steal from people for a living, and nobody from the crypto platforms to the social media apps to the countries are doing anything to quash it.

I monitor the methods of fraud in my country. There are a lot of phone scams in which the scammer asks the victim to transfer money to another account. It can be a transfer of money to a drop account or a purchase of a cryptocurrency, but it is impossible to fight against this, because the money will be quickly cashed out. All banks have instructions on how not to become a victim of a scammer, but fools still believe phone scammers.

This also happens in other countries too and it is something that the government can not stop totally. This can be reduced if the government force the bank to always traced and prosecute people that are involved in this kind of scam.
Some many of these kind of scam are in different style and the scammers always look for ways to make sure that they trick or compelled the victim to quickly do what they want without suspecting if they are scammer or not.

Cryptocurrency has created an avenue for many of these scammers to manipulate the innocent ones and people that do not have good knowledge about the cryptocurrency and how we can become a victim of scam if we are not smart enough. I think we need to pass the information around to those that may not be aware of various crypto scam that could make them lose there funds.

[zasad@]

Does this gives a free hand to scammers as they know that they cannot be punished by a court of law  

Unfortunately, yes. There are no checks and balances in place anywhere, so while legitimate users' accounts are being shut down by exchanges who proceed to keep the money, there are also individual scammers (the high-tech thieves) who steal from people for a living, and nobody from the crypto platforms to the social media apps to the countries are doing anything to quash it.

I monitor the methods of fraud in my country. There are a lot of phone scams in which the scammer asks the victim to transfer money to another account. It can be a transfer of money to a drop account or a purchase of a cryptocurrency, but it is impossible to fight against this, because the money will be quickly cashed out. All banks have instructions on how not to become a victim of a scammer, but fools still believe phone scammers.

This also happens in other countries too and it is something that the government can not stop totally. This can be reduced if the government force the bank to always traced and prosecute people that are involved in this kind of scam.
Some many of these kind of scam are in different style and the scammers always look for ways to make sure that they trick or compelled the victim to quickly do what they want without suspecting if they are scammer or not.

Cryptocurrency has created an avenue for many of these scammers to manipulate the innocent ones and people that do not have good knowledge about the cryptocurrency and how we can become a victim of scam if we are not smart enough. I think we need to pass the information around to those that may not be aware of various crypto scam that could make them lose there funds.

In Russia, if the money has been withdrawn from a bank account, then it will be cashed out very quickly through drops. In Europe, there is a system of fast payments, up to 10,000 euros and another payment system, for amounts over 10,000 euros, where payments take longer and the bank checks these payments and requests additional confirmation from the bank client.

[Bushdark]

Does this gives a free hand to scammers as they know that they cannot be punished by a court of law  

Unfortunately, yes. There are no checks and balances in place anywhere, so while legitimate users' accounts are being shut down by exchanges who proceed to keep the money, there are also individual scammers (the high-tech thieves) who steal from people for a living, and nobody from the crypto platforms to the social media apps to the countries are doing anything to quash it.

I monitor the methods of fraud in my country. There are a lot of phone scams in which the scammer asks the victim to transfer money to another account. It can be a transfer of money to a drop account or a purchase of a cryptocurrency, but it is impossible to fight against this, because the money will be quickly cashed out. All banks have instructions on how not to become a victim of a scammer, but fools still believe phone scammers.

This also happens in other countries too and it is something that the government can not stop totally. This can be reduced if the government force the bank to always traced and prosecute people that are involved in this kind of scam.
Some many of these kind of scam are in different style and the scammers always look for ways to make sure that they trick or compelled the victim to quickly do what they want without suspecting if they are scammer or not.

Cryptocurrency has created an avenue for many of these scammers to manipulate the innocent ones and people that do not have good knowledge about the cryptocurrency and how we can become a victim of scam if we are not smart enough. I think we need to pass the information around to those that may not be aware of various crypto scam that could make them lose there funds.

In Russia, if the money has been withdrawn from a bank account, then it will be cashed out very quickly through drops. In Europe, there is a system of fast payments, up to 10,000 euros and another payment system, for amounts over 10,000 euros, where payments take longer and the bank checks these payments and requests additional confirmation from the bank client.

Even with all these confirmations, the bank is still ignorant of many ways those scammers are using to get funds from there victim. Scammers are always looking for new ways to thief and scammer people no matter the security and restrictions that is needed to cashout from there victim account. Sometimes the bank workers are connected to there scammers that are carrying out this illegal and dubious act. I have seen different circumstances where the scammers were arrested and it was discovered that there are I formants from the bank that are giving out customers Identities and info to the scammers.

[zasad@]

Does this gives a free hand to scammers as they know that they cannot be punished by a court of law  

Unfortunately, yes. There are no checks and balances in place anywhere, so while legitimate users' accounts are being shut down by exchanges who proceed to keep the money, there are also individual scammers (the high-tech thieves) who steal from people for a living, and nobody from the crypto platforms to the social media apps to the countries are doing anything to quash it.

I monitor the methods of fraud in my country. There are a lot of phone scams in which the scammer asks the victim to transfer money to another account. It can be a transfer of money to a drop account or a purchase of a cryptocurrency, but it is impossible to fight against this, because the money will be quickly cashed out. All banks have instructions on how not to become a victim of a scammer, but fools still believe phone scammers.

This also happens in other countries too and it is something that the government can not stop totally. This can be reduced if the government force the bank to always traced and prosecute people that are involved in this kind of scam.
Some many of these kind of scam are in different style and the scammers always look for ways to make sure that they trick or compelled the victim to quickly do what they want without suspecting if they are scammer or not.

Cryptocurrency has created an avenue for many of these scammers to manipulate the innocent ones and people that do not have good knowledge about the cryptocurrency and how we can become a victim of scam if we are not smart enough. I think we need to pass the information around to those that may not be aware of various crypto scam that could make them lose there funds.

In Russia, if the money has been withdrawn from a bank account, then it will be cashed out very quickly through drops. In Europe, there is a system of fast payments, up to 10,000 euros and another payment system, for amounts over 10,000 euros, where payments take longer and the bank checks these payments and requests additional confirmation from the bank client.

Even with all these confirmations, the bank is still ignorant of many ways those scammers are using to get funds from there victim. Scammers are always looking for new ways to thief and scammer people no matter the security and restrictions that is needed to cashout from there victim account. Sometimes the bank workers are connected to there scammers that are carrying out this illegal and dubious act. I have seen different circumstances where the scammers were arrested and it was discovered that there are I formants from the bank that are giving out customers Identities and info to the scammers.

Bank employees cooperate with fraudsters, for example in Russia, because there is a very small punishment for fraud. The fraudster receives a sentence of 5 years in prison, and after 3.5 years he is released for good behavior.
The situation is approximately the same in other neighboring countries with Russia. In the USA, these problems were closed with very long prison terms.

[virasog]

Does this gives a free hand to scammers as they know that they cannot be punished by a court of law  

Unfortunately, yes. There are no checks and balances in place anywhere, so while legitimate users' accounts are being shut down by exchanges who proceed to keep the money, there are also individual scammers (the high-tech thieves) who steal from people for a living, and nobody from the crypto platforms to the social media apps to the countries are doing anything to quash it.

I monitor the methods of fraud in my country. There are a lot of phone scams in which the scammer asks the victim to transfer money to another account. It can be a transfer of money to a drop account or a purchase of a cryptocurrency, but it is impossible to fight against this, because the money will be quickly cashed out. All banks have instructions on how not to become a victim of a scammer, but fools still believe phone scammers.

For this purpose, Binance insists that all P2P communication should happen on the Binance chat window and not take that conversation out of the Binance to any third party platform. If the buyer or the seller asks to have a phone call where he tells another account[ s] to transfer the money, Binance can have no control or proof on this and in case of dispute/scam, Binance may not be able to help the victim.

Yes, the government won't be able to help either because of the no legalization of cryptocurrencies, but we have to take as many precautions ourselves to prevent any sort of fraud or scam with us through P2P platforms.

This does not protect against fraud. The fraudster will find the victim in the telegram, and then on the purchased account on the Binance exchange, he will find an application for the purchase of cryptocurrency.
The scammer will give the victim the details of the P2P partner of Binance and the victim will transfer the money to specified bank account. Binance will unlock bitcoins and the scammer will disappear.
Then the victim will write a statement to the police about the P2P participant in the Binance deal.

Well, the government will only help you in this case, if the crypto currency legal in that country. If crypto is not legal, and you will go to the police for any help which happened in P2P scam, they will first question you as why you are dealing in crypto which is not legal. This can go against you if the government is very strict in your country.

That is another reason where the P2P scams are not being reported or registered as people fear to tell all this stuff to the law enforcement agencies and the scammers at P2P know this fact and they do not fear in trying to scam the people involving in P2P through binance or other exchanges.

[zasad@]

Does this gives a free hand to scammers as they know that they cannot be punished by a court of law  

Unfortunately, yes. There are no checks and balances in place anywhere, so while legitimate users' accounts are being shut down by exchanges who proceed to keep the money, there are also individual scammers (the high-tech thieves) who steal from people for a living, and nobody from the crypto platforms to the social media apps to the countries are doing anything to quash it.

I monitor the methods of fraud in my country. There are a lot of phone scams in which the scammer asks the victim to transfer money to another account. It can be a transfer of money to a drop account or a purchase of a cryptocurrency, but it is impossible to fight against this, because the money will be quickly cashed out. All banks have instructions on how not to become a victim of a scammer, but fools still believe phone scammers.

For this purpose, Binance insists that all P2P communication should happen on the Binance chat window and not take that conversation out of the Binance to any third party platform. If the buyer or the seller asks to have a phone call where he tells another account[ s] to transfer the money, Binance can have no control or proof on this and in case of dispute/scam, Binance may not be able to help the victim.

Yes, the government won't be able to help either because of the no legalization of cryptocurrencies, but we have to take as many precautions ourselves to prevent any sort of fraud or scam with us through P2P platforms.

This does not protect against fraud. The fraudster will find the victim in the telegram, and then on the purchased account on the Binance exchange, he will find an application for the purchase of cryptocurrency.
The scammer will give the victim the details of the P2P partner of Binance and the victim will transfer the money to specified bank account. Binance will unlock bitcoins and the scammer will disappear.
Then the victim will write a statement to the police about the P2P participant in the Binance deal.

Well, the government will only help you in this case, if the crypto currency legal in that country. If crypto is not legal, and you will go to the police for any help which happened in P2P scam, they will first question you as why you are dealing in crypto which is not legal. This can go against you if the government is very strict in your country.

That is another reason where the P2P scams are not being reported or registered as people fear to tell all this stuff to the law enforcement agencies and the scammers at P2P know this fact and they do not fear in trying to scam the people involving in P2P through binance or other exchanges.

If P2P cryptocurrency exchange is prohibited in your country, then this does not prohibit you from buying cryptocurrencies on P2P marketplaces in other countries.
But usually there is a lot of fraud in those countries where P2P cryptocurrency exchange is not prohibited, and since it is impossible to find a scammer, the police close the criminal case, and the participants in the transaction are forced to negotiate with banks or solve their problems in court.

[Zoomic]

It really depends on the nature of the scam. In P2P trading, fiat is usually involved. So regardless of whether crypto is involved or not, it can be taken up by the court of law. Even in my country, crypto is not recognised in any way legally. Still we often face bank freeze issues and it can be taken up with legal enforcement team.

Can op please be specific what kind of scam you are referring to?

This can only be taken up in country where crypto activities are allowed, otherwise no way. In my country there is not outright ban of cryptocurrency activities but there is a prohibition that you trade crypto to fiat through the banks. The banks doesn't accept this, unless you are using the false CEX p2p where you still use the bank but not putting narration relating to crypto in the transaction.

So, let's assume there is a legal confrontation, on mentioning that you transacted cryptocurrency with a particular bank, it is a problem to the bank and they will even freeze your account and the remaining balance. The only people to solve the problem is the central authority controlling the p2p

[Medusah]

The only entity that governs in peer-to-peer trades is the DAO.  Do not expect your government to help you with cryptocurrencies.  In Binance, I expect them to not really be peer-to-peer, but in Bisq you can address concerns to the mediators and if falling for a big scam, arbitrators.

[zasad@]

It really depends on the nature of the scam. In P2P trading, fiat is usually involved. So regardless of whether crypto is involved or not, it can be taken up by the court of law. Even in my country, crypto is not recognised in any way legally. Still we often face bank freeze issues and it can be taken up with legal enforcement team.

Can op please be specific what kind of scam you are referring to?

This can only be taken up in country where crypto activities are allowed, otherwise no way. In my country there is not outright ban of cryptocurrency activities but there is a prohibition that you trade crypto to fiat through the banks. The banks doesn't accept this, unless you are using the false CEX p2p where you still use the bank but not putting narration relating to crypto in the transaction.

So, let's assume there is a legal confrontation, on mentioning that you transacted cryptocurrency with a particular bank, it is a problem to the bank and they will even freeze your account and the remaining balance. The only people to solve the problem is the central authority controlling the p2p

In Russia, the situation is similar. Cryptocurrency is not prohibited, but banks are required to verify payments and prevent illegal commercial activity on accounts of individuals where this activity is prohibited. According to Russian law, there are no clear criteria for blocking bank accounts, and therefore each bank chooses its own policy. The bank can block any transfer of money on suspicion, and you will not sue for business damages because you have an agreement with the bank that prohibits commercial activity through this bank account.

There is a maximum transfer limit, which is 600,000 rubles ($6,200), about which all data is automatically sent to Rosfinmonitoring (a large government agency that controls citizens' financial transfers, among other things).

But banks also need customers, so they usually say what requirements they have for transfers between individuals and which accounts will be blocked. This is an excess of monthly limits, this is an excess of the number of payments.

Until there are laws that will regulate this activity, any p2p trading in cryptocurrencies will remain in the shadow zone.

[qwertyup23]

Now my question is that in my country, crypto is not legalized, so in case if anyone is scammed through P2P, we can't take up this matter in the legal court because the country does not recognize the transactions of crypto in the first place.

I think this is exactly the reason on why government prohibits the utilization of BTC in their jurisdiction. Since no laws have been created by their respective Congress in dealing with anything related with cryptocurrencies, this follows that if you want to venture in this practice, then you accept the risks that are associated with it.

Does this gives a free hand to scammers as they know that they cannot be punished by a court of law  

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.

[zasad@]

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.

[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.

[zasad@]

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.

[sokani]

These days there are a lot of P2P scams on Binance and other platforms. The P2P platforms are not be blamed but the scammers are coming up with new ways to scam people who are new to the crypto world.

Recently Binance did a P2P scam awareness session with our local community which was very informative.

The recording can be watched here   https://www.binance.com/en/live/video?roomId=2138115

Now my question is that in my country, crypto is not legalized, so in case if anyone is scammed through P2P, we can't take up this matter in the legal court because the country does not recognize the transactions of crypto in the first place.

Does this gives a free hand to scammers as they know that they cannot be punished by a court of law  

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.

[Bushdark]

These days there are a lot of P2P scams on Binance and other platforms. The P2P platforms are not be blamed but the scammers are coming up with new ways to scam people who are new to the crypto world.

Recently Binance did a P2P scam awareness session with our local community which was very informative.

The recording can be watched here   https://www.binance.com/en/live/video?roomId=2138115

Now my question is that in my country, crypto is not legalized, so in case if anyone is scammed through P2P, we can't take up this matter in the legal court because the country does not recognize the transactions of crypto in the first place.

Does this gives a free hand to scammers as they know that they cannot be punished by a court of law  

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.

There are few countries that still maintained the ban on cryptocurrency and just imagine someone that is trading cryptocurrency whether through P2P or other means and got scammed, do you think that he will be ready to report the case to the police? This won't happen because he knows that he might even get arrested for breaking the law of his nation. If you trade Bitcoin or other cryptocurrencies in a country that had out a ban on it, it won't have the gods to report the case because you might even be punished for that. If crypto is legal the a case can be filed.

[zasad@]

There are few countries that still maintained the ban on cryptocurrency and just imagine someone that is trading cryptocurrency whether through P2P or other means and got scammed, do you think that he will be ready to report the case to the police? This won't happen because he knows that he might even get arrested for breaking the law of his nation. If you trade Bitcoin or other cryptocurrencies in a country that had out a ban on it, it won't have the gods to report the case because you might even be punished for that. If crypto is legal the a case can be filed.

If a cryptocurrency is prohibited in a country, this does not mean that citizens of this country cannot use cryptocurrencies in other countries. If this citizen is deceived by a fraudster, then it makes no sense for him to seek help from the police of his country. And it also makes no sense to contact the police of a foreign country if he does not comply with all the laws of another country.

[Gozie51]

There are few countries that still maintained the ban on cryptocurrency and just imagine someone that is trading cryptocurrency whether through P2P or other means and got scammed, do you think that he will be ready to report the case to the police? This won't happen because he knows that he might even get arrested for breaking the law of his nation. If you trade Bitcoin or other cryptocurrencies in a country that had out a ban on it, it won't have the gods to report the case because you might even be punished for that. If crypto is legal the a case can be filed.

If a cryptocurrency is prohibited in a country, this does not mean that citizens of this country cannot use cryptocurrencies in other countries. If this citizen is deceived by a fraudster, then it makes no sense for him to seek help from the police of his country. And it also makes no sense to contact the police of a foreign country if he does not comply with all the laws of another country.

Above all that is being discussed here regarding how a P2P trader whose country didn't legalize bitcoin can seek redress if he was scammed, well IMO I think the whole of the bunk of retrieving the coin should be on the exchange that guaranteed the transaction as escrow. That should be the right position if the party scammed have done all necessary registrations and verified. If the transaction is in binance then they should ensure to retrieve the coin . This is like other off line P2P services, the escrow does the best effort for the transaction to be successful and in a case where it doesn't then the escrow or guarantor is held liable.

However, in the case of P2P in exchanges, I could suggest a deposit fund or reserve by each trader (based on their level of amount) where an exchange could dip in to repay a defaulting party and with that, the scam issues will have a natural death .

[zasad@]

There are few countries that still maintained the ban on cryptocurrency and just imagine someone that is trading cryptocurrency whether through P2P or other means and got scammed, do you think that he will be ready to report the case to the police? This won't happen because he knows that he might even get arrested for breaking the law of his nation. If you trade Bitcoin or other cryptocurrencies in a country that had out a ban on it, it won't have the gods to report the case because you might even be punished for that. If crypto is legal the a case can be filed.

If a cryptocurrency is prohibited in a country, this does not mean that citizens of this country cannot use cryptocurrencies in other countries. If this citizen is deceived by a fraudster, then it makes no sense for him to seek help from the police of his country. And it also makes no sense to contact the police of a foreign country if he does not comply with all the laws of another country.

Above all that is being discussed here regarding how a P2P trader whose country didn't legalize bitcoin can seek redress if he was scammed, well IMO I think the whole of the bunk of retrieving the coin should be on the exchange that guaranteed the transaction as escrow. That should be the right position if the party scammed have done all necessary registrations and verified. If the transaction is in binance then they should ensure to retrieve the coin . This is like other off line P2P services, the escrow does the best effort for the transaction to be successful and in a case where it doesn't then the escrow or guarantor is held liable.

However, in the case of P2P in exchanges, I could suggest a deposit fund or reserve by each trader (based on their level of amount) where an exchange could dip in to repay a defaulting party and with that, the scam issues will have a natural death .

I don't think you understand how the scam works. A P2P exchange can only block cryptocurrencies, but it has nothing to do with fiat transactions.

Example. The scammer registers on the exchange using someone else's documents and makes several honest P2P exchanges.
Then he is looking for a client to buy bitcoin for 1000 dollars in telegrams.
When the client is found, the scammer makes the same request on the exchange and gives the victim the details for transferring a verified trader. The victim transfers money, the fraudster on the exchange receives bitcoins and quickly withdraws them from the exchange.
Then the victim and the trusted trader sort things out in the police or in court.

[Zoomic]

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.