Are chances of fraud very high on Binance P2P transactions ?

[taufik123]

That's obvious thing but If you were scammed, what will happen is that even if you did press release button only after receiving the funds, you will get chargeback and 0 funds for selling your coins. If something like this happens to you, do remember to give that buyer negative feedback so others don't get scammed as you did.

Seeing again how much the transaction is made, don't forget to look at the feedback first, if the feedback is 0 or even negative,
then don't do the transaction to be safer.

If it has already happened and you haven't received payment, do negative feedback to report to the Exchange platform,
they will definitely respond and will do what they can do.
They also have complete data and can detect who the scammer is.

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[Russlenat]

I have heard that some scammers are making fake accounts on Binance for P2P and using hacked bank accounts for transfer. If we deal with them for P2P deals, our bank accounts can also get feezed. Have you ever faced this problem on Binance ? How can we reduce the chances of getting affected by this ?

There's a possibility that your funds could be frozen if the authorities decide to investigate, but, of course, it won't affect you if you're not involved in any illegal activities. P2P transactions are pretty straightforward – you trade cryptocurrencies for fiat with a specific person. In reality, though, it's often unclear where the funds are coming from.

So, I believe the main responsibility falls on the exchange. They need to make sure they thoroughly verify the information provided, cross-check the documents, and only approve KYC for accounts once they're sure everything checks out. Once an account is verified, it's no longer the exchange's responsibility. If there's an investigation, the exchange might cooperate with the authorities. So, if you're using P2P and funds from the other party come from illegal sources, you should be in the clear unless you're in colluding with them.

I use P2P regularly myself, and I'm not particularly worried about this kind of scenario.

[libert19]

They also have complete data and can detect who the scammer is.

That depends on exchange again, platform I was scammed on was local p2p exchange, they couldn't do much about it and eventually shrugged off. I dunno how much and what data binance p2p asks.

[taufik123]

-snip-
So, I believe the main responsibility falls on the exchange. They need to make sure they thoroughly verify the information provided, cross-check the documents, and only approve KYC for accounts once they're sure everything checks out. Once an account is verified, it's no longer the exchange's responsibility. If there's an investigation, the exchange might cooperate with the authorities. So, if you're using P2P and funds from the other party come from illegal sources, you should be in the clear unless you're in colluding with them.

It must be because they manage the platform.
But to be investigated in detail by the exchange itself and the authorities to freeze funds in the account, there must be a large enough transaction.

If the transaction is under $100, it probably won't get any response and will be a less complicated internal resolution.
And it also depends on how many people report fraud on the same suspect.

That depends on exchange again, platform I was scammed on was local p2p exchange, they couldn't do much about it and eventually shrugged off. I dunno how much and what data binance p2p asks.

Local exchanges will usually be more concerned about fraud.
At my local exchange, there was a hack on an account used by a customer, but it didn't get a serious response initially,
but when it was brought up to the media they did investigate, and the hacker was caught.

The point is that local p2p will usually respond more quickly if there is a lot of pressure so that the case will be investigated.

[Wapfika]

I have heard that some scammers are making fake accounts on Binance for P2P and using hacked bank accounts for transfer. If we deal with them for P2P deals, our bank accounts can also get feezed. Have you ever faced this problem on Binance ? How can we reduce the chances of getting affected by this ?

This is true because there’s a story like this on our local board which one member made a transaction to a certain P2P vendor that use funds from hack bank account. The bank freeze his assets and require him to submit supporting details to back up all his transactions.

It’s really pain in the ass if you manage to made a deal on one of them since banks is centralized which means they are connected to each other that makes it easy to trace and freeze an account if tainted fiat landed on your account. It’s general rule on P2P to never trade on 3rd party account that has a different name to Binance account.

[libert19]

That depends on exchange again, platform I was scammed on was local p2p exchange, they couldn't do much about it and eventually shrugged off. I dunno how much and what data binance p2p asks.

Local exchanges will usually be more concerned about fraud.
At my local exchange, there was a hack on an account used by a customer, but it didn't get a serious response initially,
but when it was brought up to the media they did investigate, and the hacker was caught.

The point is that local p2p will usually respond more quickly if there is a lot of pressure so that the case will be investigated.

Well the thing is there was blanket ban on cryptocurrency trading back then, banks were ordered by central bank to not do business with crypto individuals. Hence, people were forced to use p2p, now things have gotten somewhat better as ban has been lifted and people can trade normally, somewhat cause now there is 30% tax on crypto earnings, lol.

[Russlenat]

-snip-
So, I believe the main responsibility falls on the exchange. They need to make sure they thoroughly verify the information provided, cross-check the documents, and only approve KYC for accounts once they're sure everything checks out. Once an account is verified, it's no longer the exchange's responsibility. If there's an investigation, the exchange might cooperate with the authorities. So, if you're using P2P and funds from the other party come from illegal sources, you should be in the clear unless you're in colluding with them.

It must be because they manage the platform.
But to be investigated in detail by the exchange itself and the authorities to freeze funds in the account, there must be a large enough transaction.

If the transaction is under $100, it probably won't get any response and will be a less complicated internal resolution.
And it also depends on how many people report fraud on the same suspect.

Obviously, no one's going to bother hacking an account for just $100. Hackers usually go after big sums of money that they can launder through exchanges. The only real defense the exchange has is to freeze the account, but that's only effective if the authorities act swiftly to trace the money trail. Binance, in particular, is known for its speed – trades can happen in mere minutes, whether it's through P2P or the regular channels.

[taufik123]

Well the thing is there was blanket ban on cryptocurrency trading back then, banks were ordered by central bank to not do business with crypto individuals. Hence, people were forced to use p2p, now things have gotten somewhat better as ban has been lifted and people can trade normally, somewhat cause now there is 30% tax on crypto earnings, lol.

Prohibition is the bottleneck of everything, when crypto is not supported then it's the user's problem entirely.
But when it starts to be accepted again but with a crazy tax rule of 30%, it's just like robbing crypto users,
to hell with the fucking tax that the government gives like that.
They are just like loan sharks who just want to blackmail crypto users.

Obviously, no one's going to bother hacking an account for just $100. Hackers usually go after big sums of money that they can launder through exchanges.
-snip-

I'm not talking about hacking your account, I'm talking about P2P scams that scammers can do.
Who would hack an account with a balance under $100.
The authorities will only prosecute cases with fraud amounts of thousands or even hundreds of dollars. 

[khaled0111]

What that is most important is to avoid giving your identity documents to people. Those sites too can misuse your identity documents that you submitted to them.

But if you do not give identity documents in these big websites or exchanges, they will put limit or restrictions on your account. Even to do P2P transactions on Binance, some sellers and buyers demand identity documents and they will deny the deal without these documents.

I think you got him wrong. To use the Binance p2p platform you don't have a choice, you must verify your identity before you can start using it. So, this is not a choice. You either comply with it or find another p2p platform.
On binance p2p, merchants don't have the right to ask you for your personal documents since Binance has already verified them. Any merchant who asks for such docs or any other personal information is mist likely a scammer and better avoid dealing with him. If he refuses to complete the deal then simply report him and binance's customer service will take care of the rest.

[goinmerry]

I have heard that some scammers are making fake accounts on Binance for P2P and using hacked bank accounts for transfer. If we deal with them for P2P deals, our bank accounts can also get feezed. Have you ever faced this problem on Binance ? How can we reduce the chances of getting affected by this ?

That situation is possible but I doubt scammers can make fake accounts right away that easily and will use hacked bank accounts. There are lots of verifications needed on Binance P2P before becoming a merchant. Aside from that, there's no way we can avoid that if we really encounter a trade with a compromised bank account.

How to reduce the chances of getting affected by that?

a) only select merchants and do trade to only those with 99% positive ratings

b) stop using Binance P2P

[WillyC]

I did a P2P transaction with "Coingraam" due to difficulty getting GBP off Binance. With a goodish rating, over 1400 trades and several years of activity and verified, I assumed it would be ok. A few days later I received a text message from Lloyds saying my account had been used to receive fraudulent transactions and they'd be closing my account.

I reported this to Binance a few days ago and Coingraam is still happily trading on there, so Binance doesn't seem too fussed.

So I'd say yes, there is a high rate of fraud with Binance P2P. Don't use it.