How to avoid scam when using P2P service?
Cryptocurrencies have become commonplace, and users tend to pay less and less attention to the safety of transactions. This is actively used by fraudsters. We decided to show how the most common fraud schemes work.
The Wallet Bot is a deal guarantor, but we can't always track users' behavior. Thus it is essential to know the most frequent fraud schemes described below.
We ask you to contact the Wallet Bot support team any time when you have doubts about a counterparty's actions. It is much better to spend extra minutes within a transaction than to lose your money.
The main goal of our P2P-marketplace is to ensure the safety of transactions and guarantee the performance of their obligations by its parties. However, this does not mean there are no scammers trying to get your money illegally.
Remember that the reason for sending crypto can only be the fact of payment deposit to your account.
The main P2P fraud schemes:
- “Triangle”;
- Fake receipts;
- Similar amounts;
- Sending an amount in a different currency;
- Accidental deposition;
- Trustworthy seller;
- Misrepresentation of transaction type;
- Fake notification from bank or payment system;
- Fake Wallet Bot support in Telegram;
- Fake Wallet Bot in Telegram;
- Multiple transactions for the same amount of money;
- Chargeback or payment reversal;
- Canceling an unconfirmed transaction;
- "Profitable" transaction outside the platform.
And now let's look at how you can recognize deception and protect yourself.
1. “Triangle”
This is the most common and dangerous fraud scheme. The scammer publishes an ad for selling crypto with a below-market price. The buyer-victim responds to the ad with this good price.
The scammer asks for a deposit, when the victim agrees, he opens a deal to buy cryptocurrency with the seller on a P2P platform, receiving details from the seller, which he sends to the buyer. As a result, the "victim" pays for the purchase of the cryptocurrency, and the seller "sends" the cryptocurrency after receiving payment. The unscrupulous user then immediately withdraws the coins from the platform. "The victim" tries in vain to contact the scammer, and then starts calling the bank, trying to recover the lost money. The main suspicion falls on the honest seller of the cryptocurrency, whose details were involved in the fraudulent scheme.
Such a scheme has some varieties, but its basis is that the purchase of cryptocurrency is paid by a third party – the "victim".
How to avoid falling into such a triangle?
You, as a seller of cryptocurrency, should always keep this scheme in mind and assume by default that the buyer may turn out to be a common scammer. Therefore, when discussing transaction details, you should make sure that the other party is really the buyer and will pay for the transaction from their account. To do this, you need to ask the buyer for any information that will help you confirm your intentions. The easiest and most effective option is to add a comment "Wallet Bot transaction" or "cryptocurrency purchase". This way, the potential victim will probably suspect something wrong and refuse to transfer the money.
Another great way that we recommend using with all new counterparties is to request a picture of a part of the card in front of a computer or phone screen with an open transaction on the Wallet Bot. A potential victim would definitely not be able to execute something like this.
Additional factors that indicate a fraudster can be a new account without feedback from other users or with a very little number of transactions, a long time between transaction opening and transferring, payment of transaction not from the first time (opening one transaction and getting the details and then canceling the transaction, then opening a new transaction and transferring the amount to the details received in the first open transaction).
In case of any suspicions, we recommend immediately writing to the Wallet Bot support.
The functionality of our platform allows you to save notes on counterparties. We recommend saving the names or details of the senders in the notes - in all subsequent transactions with the same buyer, you will be able to compare the names or details with those saved in your notes.
2. Fake receipts
In this type of fraud, the scammer sends a fake receipt after placing an ad and clicking Confirm Payment. You can easily fall victim to this scam if you verify the receipt and release the funds without confirming that the funds have landed in the receiving account.
3. Similar amounts
This scheme of deception is designed for the seller's inattention. The scammer opens a transaction, for example, for 1,000 USD and asks for bank details. But instead of the full amount, he transfers 10 USD and 00 cents. The notification of receipt, depending on the bank, will show the receipt, which is shown as 10.00. In a hurry, the seller may not pay attention to such a detail and send the cryptocurrency.
The safest way to avoid such a trick is to always carefully check the amount of receipt and account balance.
4. Sending an amount in another currency
By other currencies, we mean any currencies whose value is lower than the currency of the transaction. Scammers rely on the inattention of the seller of the cryptocurrency to check the crediting of funds.
In the rush, which can be artificially created by the scammer, the seller may not pay attention to the currency that was transferred to his account. The amount will match the expected amount, but the exchange rate will not be in favor of the seller.
Therefore, it is always necessary to carefully check not only the amount, but also the currency of payment.
5. Accidental deposition
The scammer opens a deal with you to buy cryptocurrency, brings up some topic that is important to you, such as the possibility of making money on the Wallet Bot. You're engaged in a conversation completely forgetting why you're here.
But remember, you may be facing a scammer whose aim is to get your coins without paying anything, hoping that you will inadvertently unblock the coins by accident. To avoid this scenario, you should focus solely on the transaction.
If you notice that the conversation is moved to other topics, you should immediately think about whether the buyer really wants to buy cryptocurrency from you.
6. Trustworthy seller
The buyer convinces you in one way or another to send him the cryptocurrency first.
In order to gain your trust, the scammer may make several successful deals with you beforehand. It is your responsibility to always remember the sequence of actions. The buyer opens the transaction, and the seller hands over payment details. Only after transferring the funds, the seller sends the cryptocurrency. If the buyer ignores your comments, you should immediately contact Wallet Bot support.
7. Misrepresentation of transaction type
The buyer opens a deal to buy cryptocurrency, but sends payment details from your side in the deal chat, just like in a sale deal.
If you conduct a lot of transactions at once, it is quite realistic that most of your actions will be performed "automatically". So in order not to become a victim of conditioned reflexes, make all transactions consciously – each time pay attention to the type of transaction (sale or purchase). The best option is to conduct a series of transactions to buy, and only then to sell, without mixing them up.
8. Fake bank notifications
In our case, we are talking about fake SMS notifying the seller of the cryptocurrency about the receipt of payment for it in order to convince him to close the transaction and send the cryptocurrency.
Why do users fall for this trick? The critical point is to get the cryptocurrency seller's phone number. Of course, if the buyer pays for the cryptocurrency directly using the seller's phone number, then the seller himself gives the phone number to the scammer. However, in such a situation, the potential victim will be wary and the possibility of a successful scam will be significantly reduced.
Often, traders use several ads to sell cryptocurrency with different payment methods. If he sells cryptocurrency through systems where it is required to report the phone number, the scammer can preliminarily make a deal from one of his accounts, and after learning the phone number and waiting for some time, try to pull off this scheme.
In order not to mistake a fake SMS for a real one, it is enough to know the number from which the bank sends notifications about the receipt of funds. If the number does not match, and the money did not come to you – you need to immediately contact the technical support Wallet Bot.
9. Fake Wallet Bot support in Telegram
Wallet Bot employees will never text you first! Any such messages should be blocked.
Sometimes a buyer in the transaction chat tries to impersonate Wallet Bot administrators. He may send a message as if support or a moderator is writing in the deal chat. However, only the seller and the buyer can communicate in the deal chat.
Some scammers may go even further and send a picture with a text saying to let go of the cryptocurrency on behalf of the Wallet Bot team. But, as you already understand, this is exactly the same attempt to cheat.
Any such messages should be immediately reported to Wallet Bot support, and under no circumstances should you send cryptocurrency.
10. Fake Wallet Bot in Telegram
This scheme comes from phishing sites that look just like the real thing, but are used by scammers to steal sensitive information, such as credit card data, passwords to mailboxes, personal accounts, and now cryptocurrency wallets.
This bot completely mimics a real one – only up to the moment when you are supposed to transfer money to your card or send coins to your wallet. So use only this bot: https://t.me/wallet.
11. Multiple transactions for the same amount of money
Two users place two ads of the same amount at the same time. Scammer A made the payment but did not mark the order as paid at the same time. Scammer B clicked “mark as paid” without paying any money and provided a screenshot (which was actually from Scammer A, because he is the one who made the actual payment), in an attempt to get you to release the funds.
The goal is to make you feel anxious enough to release the funds right away without verifying the transfer. It can be easy to release funds without verifying the user who initiated the transfer. Later, Scammer A will provide the same payment proof and request that the tokens be released. If you are not careful, you’ll end up releasing tokens 2 times, but only receiving ½ of the assets being bought.
12. Chargeback or payment reversal
A buyer and seller agree to trade crypto on a P2P platform. The buyer then transfers funds to a seller’s account to get them to release their crypto. However, once the crypto has left the seller’s wallet, the buyer calls their bank within 72 hours to report they never authorized the transfer. They may claim the transaction was fraudulent or a mistake, so the bank cancels the payment and reverses the transaction. The seller loses their crypto, as well as the proceeds from the sale.
13. Canceling an unconfirmed transaction
The scammer contacts you in a transaction chat or in any messenger and offers to conduct the transaction outside the platform at a favorable rate, while being ready to send the cryptocurrency to your address first - before your transfer the payment.
You provide the address and see the incoming transaction within minutes. The scammer then sends the payment details and you transfer the funds. The incoming transaction to your address was sent with a network fee, the scammer cancels it and disappears along with your payment.
14. "Profitable" transaction outside the platform
You open a deal to sell cryptocurrency, the buyer offers to go to messenger to communicate. In messenger, the buyer offers to conduct the transaction at a more favorable rate, as he will not have to pay a commission for a secure transaction, and it will save time. He asks for your account details for payment, provides the address, you make the transfer and the buyer disappears.
We recommend discussing all details in an open transaction chat and never transfer cryptocurrency outside of a secure transaction. Wallet Bot can guarantee full transaction security only if the transaction is conducted within the platform.