2 common Binance P2P scams and how to safeguard against them

Binance P2P scams are becoming a growing concern in the vibrant world of cryptocurrency trading. Despite the many advantages offered by platforms like Binance P2P, from low transaction fees to flexible payment methods, the surge in their popularity has unfortunately also drawn the attention of unscrupulous actors.

Cryptocurrency trading has gained significant traction in recent years, with platforms like Binance P2P enabling users to buy and sell digital assets conveniently. However, the growing popularity of such platforms has also attracted scammers looking to exploit unsuspecting traders.

In this detailed guide, we delve into the two most frequently encountered scams on Binance P2P. Our aim? To arm you with knowledge and safeguards, transforming the way you protect your digital assets and ensuring a safer trading experience.

Before we dive in, If you have not, we will urge you to check out our articles on how to buy and sell crypto using Binance P2P with mobile money

Some of the advantages of using the Binance P2P method include

• Low-cost transaction fees
• Flexible payment methods
• Trade at your preferred prices
• Protection for your privacy

Before we outline these scams and prevention measures when buying or selling on the Binance P2P platform here are some general checkers you should look out for

• Vendors have good ratings of up to 97% and more
• Vendors have a yellow verified checker on their account
• The vendor isn’t offering a ‘too good to be true rate relative to other similar vendors
• The vendor has good reviews and positive signals

2 common Binance P2P Scams

1. Impersonation Scams: Safeguarding Your Identity and Funds

Impersonation scams have become a prevalent threat within the cryptocurrency space, and Binance P2P is not immune to these malicious activities. Scammers often create fake profiles that closely resemble those of reputable traders on the platform. They prey on unsuspecting users by engaging in seemingly genuine transactions, only to disappear once the funds are transferred.

To protect yourself from impersonation scams, follow these key measures:

a. Verify the Trader: Before initiating any transaction, thoroughly examine the trader’s profile. Look for verification badges, trade volume, and positive reviews from other users. Establishing a trader’s credibility is crucial in preventing potential scams.

b. Use Binance Escrow: When trading on Binance P2P, always ensure that you utilize the platform’s built-in escrow service. This feature acts as a safeguard by holding the funds in escrow until both parties confirm the completion of the transaction.

c. Double-Check Communication Channels: Scammers often attempt to redirect communication to external platforms. Verify that all communication remains within the Binance P2P chat system and never share sensitive information outside of the platform.

2. Phishing Attacks: Strengthening Your Security

Phishing attacks are another pervasive threat that can compromise your crypto holdings. Cybercriminals employ various tactics, such as fake websites and emails, to trick users into revealing their login credentials and personal information. Binance P2P users must remain vigilant to avoid falling victim to these scams.

To fortify your security against phishing attacks, consider the following precautions:

a. Be Mindful of Links: Exercise caution when clicking on links received through emails, chat messages, or other platforms. Always double-check the URL’s authenticity to ensure it matches the official Binance website.

b. Enable Two-Factor Authentication (2FA): Implementing 2FA adds an extra layer of protection to your Binance account. By requiring a secondary verification code, even if your login credentials are compromised, hackers will find it significantly harder to gain access to your funds.

c. Educate Yourself: Stay informed about the latest phishing techniques and tactics employed by scammers. Regularly review security alerts and announcements from Binance to remain one step ahead of potential threats.

As the cryptocurrency market continues to evolve, scammers will persist in devising new ways to exploit unsuspecting users. By familiarizing yourself with the two common scams prevalent on Binance P2P and implementing the recommended protective measures, you can safeguard your crypto assets and trade with confidence.

Remember, staying informed, exercising caution, and using the security features provided by the platform are the key to protecting your digital wealth in this ever-changing landscape.

3. Reversible Payment

Another common scam is the reversible payment.

In such cases, a buyer first transfers the money to your bank account or mobile money account to make you release the crypto. Within 72 hours, the buyer calls the bank and tells them that he has not made the purchase, so the bank will cancel the payment, causing you a loss in crypto.

An easy way to protect yourself against reversible payment is to ask the buyer to send you a photo of the transfer record as proof of his or her purchase before releasing crypto. 

The user cannot claim that he or she did not make the payment.

What does Binance do to protect your assets from scams?

1. Identity Verification

Before you can start trading on Binance P2P, you need to complete identity verification, also known as KYC (Know Your Customer). KYC assures that users trade with their authentic identities, and Binance reserves the right to investigate.  

2. Escrow Service

In all P2P trades, Binance provides crypto escrow services to secure users’ crypto assets. When an ad is posted the amount of crypto for the ad is automatically reserved from the seller’s fiat wallet.

This means that if the seller runs away with your money and does not release your crypto, or forgets to release your crypto on time, Binance customer support can release the crypto from the reserved funds in the seller’s wallet to your wallet.

We hope this article helped you learn about the two common Binance P2P scams. You may want to check out our article on how to buy cryptocurrency with mobile money.