Crypto Scams on P2P Crypto Marketplaces & How to Avoid Them – English

Key Takeaways:

It is important to stay informed on the most commonly occurring crypto scams on P2P exchanges and what you can do to protect yourself.
5 common P2P scams: Fake payment receipt, fake customer service representative, fake SMS confirmation, placing 2 P2P orders simultaneously, and fake websites scams.
A few tips to protect yourself: Trade on reputable platforms, document your transaction via screenshots, trade with highly-rated users and verified merchants etc.

As peer-to-peer (P2P) crypto marketplaces become more popular, the number of crypto scams related to them is also on the rise. As part of our efforts to prevent fraud and protect you and your assets from fraud, we strive to keep you informed about the most frequent scam tactics so that you can take the necessary measures to prevent them.

Here are some of the most typical P2P crypto scams that you should look out for and our advice to not fall victim for any of them.

Fake Payment Receipt Scams

Fake payment receipt scams are a common tactic used by scammers to trick users into releasing their crypto. Scammers send a fabricated screenshot of payment, asking users to release the crypto. Unfortunately, the payment has not been made, and the scammer disappears with the cryptocurrency.

To avoid this scam, never trust any screenshot or image blindly. Check your banking app or e-wallet to confirm accurate payment from the correct account name. Be cautious when dealing with new buyers or sellers and always verify payment information before releasing your crypto. Fake payment receipt scams can be devastating, but by staying vigilant and following these simple steps stringently, you can keep your cryptocurrency safe and secure.

Fake Customer Service Representative Scams

Scammers can also pretend to be a customer service representative and ask users to release their crypto. They claim to process the payment on the user's behalf, but it's a lie.

To protect yourself from this scam, remember that legitimate P2P platforms will never directly ask you to release your assets. Always confirm the payment receipt directly in your payment app and never release your crypto without verifying it yourself on your banking app.

If you are unsure, contact the P2P platform to verify their identity and request assistance in completing the transaction. As fake customer service representative scams are a growing threat, be cautious when dealing with unknown parties and verify any requests before releasing your crypto.

Fake SMS Confirmation Scams

Another type of crypto scam on P2P marketplaces is the fake SMS confirmation scam. Here's how it works: Scammers are familiar with the P2P process and know that exchanges send SMS confirmations when the buyer marks the order as paid. Scammers may pretend to be the exchange and send a fake SMS confirmation to deceive you into releasing your assets.

If you receive an SMS confirmation from an unknown number or a number that does not match the exchange's contact information, it's likely a scam. Remember to never release your crypto without first confirming the payment receipt directly in your payment app.

By taking the extra step to confirm the payment receipt yourself, you can avoid falling victim to fake SMS confirmation scams as well as most others. Always be cautious when dealing with unknown parties and verify the legitimacy of any requests before releasing your crypto.

Placing 2 P2P Orders Simultaneously

Scammers on P2P crypto marketplaces have also come up with a new way to steal cryptocurrency by placing two orders simultaneously: The bad actor places two orders with the same amount and intends to make payment for only one of them. The buyer completes the payment for one order and acquires legitimate proof-of-payment for it. Then, they share that proof with the second seller without actually paying for the second order.

To avoid falling victim to this particular crypto scam, always be cautious when receiving screenshots as proof of payment. Again, check your payment app for yourself to ensure that payment has been made for all orders before releasing any cryptocurrency.

Similar to the fake payment receipt scams, don’t rely solely on screenshots or proof-of-payment provided by the buyer or seller. Take the extra step to confirm the payment receipt directly in your payment app. By doing so, you protect yourself from this type of fraud and keep your cryptocurrency safe and secure.

Fake Website Scam

A more classic method fraudsters are known for is to create fake websites that are virtually indistinguishable from the genuine website, tricking users into entering their personal credentials. This is how they do it:

The bad actor develops a website that resembles the genuine website, then distributes a message or email with a link to the fraudulent website. Unsuspecting individuals put in their login details on the fake website, which the fraudsters can then use to get into their accounts and steal their digital currency.

To avoid this crypto scam, always inspect the content of messages and emails carefully. Be on the lookout for URL links with any altered letters or numbers, which can indicate a fake website. Remember that the exchange will never ask for sensitive information, such as your login details, via email or SMS.

If you suspect that a website is fake or fraudulent, do not enter any sensitive information. Instead, report the suspicious activity to the customer support immediately.

Tips to Protect Yourself from Crypto Scams

Taking precautionary measures is essential when trading on P2P crypto marketplaces to prevent becoming a victim of fraud. Here are some good habits to protect yourself from crypto scams on these platforms:

Trade on reputable platforms

Trade on reputable platforms: Stick to using well-known and established P2P crypto marketplaces, which have strong security measures and a good reputation for user protection. Pexpay as such, has a strong track record of putting user safety first at all times and having the option to easily buy or sell crypto on your phone. Read up on how Pexpay keeps your assets safe here.

Deal with verified merchants

Trade with Verified Merchants: Only trade with merchants who have gone through the verification process, as this reduces the likelihood of fraudulent activity. If you are interested in becoming a verified and reputable P2P merchant, make sure to check out this tutorial.

Look for highly rated users

Trade with users that have high completion rates and positive feedback: It's always a good idea and easy to check a user's completion rate and feedback before trading with them on Pexpay, as this will give you a better idea of their reputation and reliability.

Document your transaction

Take screenshots to use as evidence in case of an appeal. Be sure to take screenshots of the chat log and any other relevant information when you make a transaction. In case you experience a dispute, this can be very helpful as evidence to rule the appeal in your favour. Moreover, always make sure that the transaction directly takes place between you and the other user to avoid a third-party transfer.

Make use of customer support

Should you have any queries or worries related to a transaction, feel free to contact the Pexpay customer service. We are available to help and can provide you with useful advice and direction around the clock, whenever you need it.

At Pexpay, taking the necessary steps to keep your cryptocurrencies secure is of highest priority for us and it should also be for you.

On top of the advice above, you should generally be aware of any suspicious activities, double-check all transactions, use strong passwords, two-factor authentication, and never share your private key or passwords with anyone. To learn more about keeping your account safe, click here.

Beginners’ Guide to Pexpay P2P:

Disclaimer: Your use of the Pexpay P2P services and all information and other content (including that of third parties) included in or accessible from the Pexpay P2P services is at your sole risk. Our only responsibility is to handle crypto transactions. All payments are final upon completion unless otherwise required by law. Pexpay P2P platform has neither the rights nor the obligations to resolve any disputes arising from a completed payment. Neither Pexpay P2P platform nor merchants shall be responsible for your loss in a completed payment.