Key Takeaways:
- Crypto scams such as text message, verification code and phishing through corrupt URL scams are very prevalent and users much stay vigilant and educated on how to spot and avoid them.
- Some tips to protect your Pexpay account include using a unique email and password for your Pexpay account, not sharing your sensitive data, and enabling 2 factor authentication (2FA).
- Pexpay takes multiple measures to protect your digital assets such as KYC, 24/7 customer support, Escrow Service and T+1 withdrawal limit.
At Pexpay, we take user protection seriously, so we consider it our responsibility to constantly keep our users updated on security tips and advice. In this article, we share about scams that you should watch out for when transacting with Bitcoin and other cryptocurrencies.
8 Common Scams to Watch Out For
1. Text message scams
This type of scam is performed via messaging applications, usually by WhatsApp, Telegram, or SMS. Victims will usually receive a text message from scammers pretending to be a Pexpay staff member.
The scammer will tell you that your account is under attack and that you need to send your crypto to another secure Pexpay account. Victims who fall for this trick will end up sending their funds to the scammer’s account.
2. Verification code scams
The verification code scam is one of the most common scams in the financial sector, not only in crypto.
If a scammer manages to log into your Pexpay account, and wants to withdraw your crypto, they will need your verification code.
To get that code, they will pretend to be a Pexpay staff member and will try to convince you to provide them with the code The scammer will claim that the code is needed to protect or secure your account.
3. Phishing through corrupt URL scams
Phishing scams are extremely prevalent in the cryptocurrency industry. All that the scammer needs is for you to click on a corrupted link. Typically, phishing scammers will send you an email from a fake address that is similar to a Pexpay email address, so that you will not notice the difference.
Also, they can send you an SMS with a link to a fake Pexpay website and ask you to log into your account. As soon you input your login credentials, the scammer will have everything he needs to control your account.
4. Blocking your account scams
In account blocking scams, the scammer claims to be law enforcement or Pexpay employees. They will text you claiming that your account will be blocked if you don’t follow their instructions.
5. Man-in-the-middle (MITM) scams
A man in the middle (MITM) attack is a general term for when a perpetrator positions himself in a conversation between a user and an application—either to eavesdrop or to impersonate one of the parties, making it appear as if a normal exchange of information is underway. There are many MITM scams as scammers, but we will give you the most common ones:
- Romance Scams - the scammer finds a victim via a dating app and forges an online relationship. At one point, the scammer will manipulate the victim into helping him with his financial issues by sending over some Bitcoin or other crypto.
What the victim doesn’t know is that the scammer has provided the details of an unrelated crypto seller, who will then unknowingly send money from the victim to the scammer, thinking that it’s a typical crypto-to-cash transaction. - Investment Scams - what drives this MITM scam scenario is an individual’s desire to quickly profit from an investment. A scammer finds victims who are looking for quick-profit Bitcoin investments. At some point, the scammer will ask the victim to send money to his account, in exchange for the Bitcoin he earned.
Unknown to the victim, the account is actually owned by a crypto seller unwittingly set up by the scammer to be the middleman in the scam. The victim sends the money to the crypto seller, who then unknowingly sends the Bitcoin to the scammer. - Ecommerce Scams - the scammer finds a person who is looking to buy something online. When the time comes for the victim to pay for the item, the scammer presents him with a crypto seller’s information, claiming that it’s his account.
Once a victim pays for the item, the crypto seller then unknowingly sends crypto to the scammer on the other end. Once the scammer exits, the story ends badly for the victim and the crypto seller, as in previous scenarios.
6. Fake payment receipt scams
When doing peer-to-peer transactions it is important that you check your bank account or payment method, to verify that you received the money. Sometimes, scammers can manipulate screenshots or photos and claim that they have already made the payment.
7. Chargeback and wrong transfer scams
A scammer can take advantage of the chargeback features on some payment platforms to defraud his counterparty. In other words, after the deal is completed, this scammer will trigger chargeback on their payment and claim the funds to cancel or reverse the initial payment he made. The scammer can call the bank and claim that it was an unauthorized transaction, so that the bank will cancel the payment.
8. Scammers pretend to be Customer Service and request to release the order
An equally common scam scheme is when someone impersonates Pexpay Customer Service and asks you to release cryptocurrency without payment during a P2P transaction.
The most important P2P rule you should remember is:Never transfer cryptocurrency to buyers until you have confirmed full payment in your bank account.
The second thing you need to know is that customer service will never interfere with transactions between users or communicate with you in P2P chat. The only time you will get a message from customer service is in the appeal window of an open dispute.
If you’ve placed an order and someone in the P2P chat informs you about the progress of the order and the need to complete it, ignore the message and immediately request an appeal. We do not store users' fiat money and there is no escrow for fiat money. Any attempt to convince you otherwise is a scam and should be ignored.
More Tips to Protect Your Account From Scammers
- Use a unique email and password for your Pexpay account
- Do not share your sensitive data
- Enable 2 factor authentication (2FA)
- Regularly check Haveibeenpwned.com for potential leaks
- Don't click on links from suspicious emails or SMSes
- Don’t trust, verify that the money is in your account
- Don’t trade outside of the platform
- Bookmark the Pexpay website
- If a trade sounds too good to be true, it probably is
- Trade with users who have high completion rates
What Does Pexpay Do To Protect Your Assets?
1. Know Your Customer (KYC)
On top of the KYC (Know Your Customer) requirement that all the users need to complete to trade on Pexpay, we request extra proof of experience and reputation for peer-to-peer (P2P) trading in order to be able to publish ads.
2. Escrow service
Each Pexpay transaction involves escrow service protection, which ensures that counterparties in a transaction are protected from attempts by weather parties to act in bad faith.
3. Customer support
In addition to the smooth, clean and adaptable user experience on Pexpay, you can also expect a robust customer support system when you need to troubleshoot an issue.
4. T+1 withdrawal limit
The “T+1” withdrawal limit provides a 24-hour buffer against the potential loss of user assets due to illegal funding. It also discourages money laundering activities on the platform to the greatest extent possible, reduces the risk of bank accounts being frozen, and ensures a secure trading environment for users
Learn more about P2P on Pexpay:
- All You Need To Know About P2P Trading on Pexpay
- How to Buy Cryptocurrency via P2P Trading on Pexpay App
- How to Sell Cryptocurrency via P2P Trading on Pexpay App
- Pexpay P2P Trading FAQs
- Pexpay P2P Appeal Handling Rules
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.