Peer-to-peer (P2P) crypto trading offers convenience, but it’s also a hotspot for fraud. One mistake in a P2P transaction can cost you your funds, your account — or worse, your future.
Whether you’re a beginner or a seasoned trader, understanding the common scams is crucial to protect yourself. Here’s a detailed breakdown of the 7 most common P2P crypto scams and how to avoid them.
🕵️♂️ 1. Fake Payment Screenshot Scam
How it works:
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The scammer (the “buyer”) sends you a fake screenshot claiming they’ve transferred the money.
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Thinking the payment is real, you release the crypto.
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Only later do you realize no money actually arrived.
How to protect yourself:
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Never rely on screenshots as proof of payment.
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Always check your bank account or UPI app directly.
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Release crypto only after you have 100% confirmed receipt of funds.
👤 2. Fake Support Impersonation
How it works:
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Scammers pretend to be P2P support staff (e.g., “Binance Support” on WhatsApp).
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They ask for your wallet info, or tell you to “verify a transaction.”
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If you comply, they can take over your account or steal your funds.
How to protect yourself:
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Never share OTPs, passwords, or wallet access.
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Official support will never contact you via WhatsApp or Telegram.
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Only seek help via the official website or in-app support channels.
💸 3. Reversed Bank Transfer Scam
How it works:
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The buyer sends funds and you release the crypto.
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After that, the buyer reverses or disputes the transaction (e.g., via UPI refund or NEFT chargeback).
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The bank pulls the money back from your account.
How to protect yourself:
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Only accept payments from accounts matching the buyer’s verified name.
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Never accept third-party payments.
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Always take a screenshot showing UTR, transaction ID, and sender name as proof.
💳 4. Credit Card Chargeback Fraud
How it works:
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The buyer pays using a stolen or unauthorized credit card.
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You release the crypto.
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Later, the bank flags the transaction as fraud and reverses the payment.
How to protect yourself:
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Avoid accepting credit card payments in P2P deals.
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Only accept IMPS, UPI, or NEFT from verified accounts.
🔗 5. “Trade Outside Platform” Scam
How it works:
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The scammer says, “Let’s trade outside Binance to avoid fees.”
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You send crypto without protection, and they disappear.
How to protect yourself:
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NEVER trade outside official platforms.
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Platforms like Binance P2P offer escrow protection, meaning the buyer’s crypto is locked until you confirm payment.
📛 6. Fake Name or Mismatched Identity Scam
How it works:
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The buyer uses a different name to send funds.
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Later they claim, “That wasn’t me,” and dispute the payment.
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You lose both the crypto and the money.
How to protect yourself:
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Always match the sender’s name with the verified platform identity.
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If there’s any mismatch, raise a dispute immediately.
👮 7. Legal Trap Scam (Frozen Bank Accounts)
How it works:
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A scammer uses your bank account to receive stolen or illegal funds.
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Later, police or the bank freeze your account due to fraudulent activity.
How to protect yourself:
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Avoid large unknown transfers from strangers.
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Only trade with users who have positive reviews and completed KYC verification.
🛡️ Essential P2P Trading Safety Tips
✅ Use platforms that offer escrow protection (e.g., Binance, OKX, Bybit)
✅ Trade only with verified users with strong reputations
✅ Carefully verify all payment details — name, time, and reference ID
✅ Never share personal or wallet information outside the official platform
✅ If anything feels suspicious: raise a dispute immediately
By staying alert and following these tips, you can trade P2P crypto safely and avoid falling victim to costly scams. Always remember: in the world of P2P, security is your responsibility.
Ready to start your cryptocurrency journey?
If you’re interested in exploring the world of crypto trading, here are some trusted platforms where you can create an account:
- Binance – The world’s largest cryptocurrency exchange by volume.
- Bybit – A top choice for derivatives trading with an intuitive interface.
- OKX – A comprehensive platform featuring spot, futures, DeFi, and a powerful Web3 wallet.
- KuCoin – Known for its vast selection of altcoins and user-friendly mobile app.
These platforms offer innovative features and a secure environment for trading and learning about cryptocurrencies. Join today and start exploring the opportunities in this exciting space!
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Disclaimer: Always do your own research (DYOR) and ensure you understand the risks before making any financial decisions.
