How to spot and avoid P2P scams

Over the past few years, the use of P2P payments has become increasingly popular because it can be used to make easy and convenient transactions. Unfortunately, since P2P payments are done digitally, there are loopholes that make them susceptible to scams and fraud. Hence, it is important for you to learn how to spot and avoid P2P scams to avoid losing your hard-earned money. 

The best approach is to use legitimate a P2P trading platform like Bitmama, where you can securely transact without the fear of fraud. 

Bitmama crypto price alert and buy/sell automation feature
Bitmama crypto price alert and buy/sell automation feature

What is P2P trading in cryptocurrency? 

P2P trades generally involve two people trading cryptocurrency with each other without the interference of a middleman or third party. Essentially, when executing a P2P trade, you are completely in charge of the transaction. Hence, you choose your preferred payment option, when and who to sell and buy crypto from, and other parameters you like. 

There are limited restrictions around P2P transactions because there is no direct intermediary or third-party involvement in the trade. Hence, scammers attempt to defraud people who don’t take active precautions while executing P2P crypto transactions. However, a platform like Bitmama controls the end-to-end process, ensuring buyers and sellers are left satisfied with the transaction. 

Want to learn how to spot and avoid P2P scams? Let’s dive in. 

How does P2P scam work?

Below, we’ve highlighted some of the ways in which crypto P2P scams are executed.

1. Fake receipts or forgery

Scammers can easily forge screenshots, receipts, or other proof to claim that they have paid you and executed their part of the transaction. Essentially, scammers do this to put pressure on the sellers to release cryptocurrencies even though the money paid is yet to be confirmed in the seller’s bank account.

A seller who falls for this scam only sends the crypto to the scammer and receives nothing in return. 

2. Double identity 

A seller can also scam buyers by using an alternate option to receive the funds. Let’s say a P2P transaction is about to take place, after the crypto buyer sends the funds, the seller will just start claiming that the transaction has not been finalized since he has to receive the cash in his account. In this case, the seller will demand that the buyer does another transfer in order to get paid two times. So the already-locked funds will not be released until the buyer executes another transfer.

For this to transpire, the seller will most likely communicate with the buyer privately, typically outside of the P2P trading platform. The seller may also use a neutral account to receive money from the buyer. This is done to remove all evidence of the illicit transaction in case the buyer decides to report the case to the platform.

3. Fake bank

Here, a buyer scams by sending a fake credit alert to the seller, prompting the seller to confirm payment and finalize the transaction. Since the seller has seen a credit alert (which is fake), he may not bother himself to confirm if the cash was actually deposited in his account. So, the seller releases the funds to the buyer in exchange for nothing.

4. Fake customer support 

Scammers may also offer to assist you in solving a problem with your P2P trading platform by pretending to be an official customer care representative. They can even send you fake links that may redirect you to a website that looks almost like the original site. Logging in with your private details on a spam site like this will grant them access to your details. From your details, they’d be able to easily access and withdraw all your funds or execute other fraudulent activities. 

How to spot and avoid P2P scams – Top 5 ways

Consortium blockchain network

Here are some trusted ways you can avoid becoming a victim of these fraudulent P2P trading activities:

1. Ensure that you record your transactions

Make sure you look for a way to record all transactions you execute during P2P trading as they will serve as proof that you have truly completed them. You can take different screenshots during the process to have enough evidence against scammers or the P2P platform you are trading on.  

2. Always confirm that all transactions have been reflected in your bank account

This is the best way to avoid fake transfers. Make sure you check your wallet or bank account to confirm that the transaction has been reflected in your balance. Do this before you authorize any crypto transfer to the buyer. It is not ideal to only rely on the evidence provided by the buyer. 

3. Only trade on secure platforms 

When it comes to P2P transactions, security is of utmost importance. It is best to trade on reputable crypto exchanges that have solid track records and have set in place robust security measures to safeguard their users. 

Some exchanges even execute identity verification processes to safeguard you from trading with fake identities and accounts. Others may offer you escrow services that enable you to lock up funds pending when the two parties involved confirm that the transaction has been duly completed. Whatever you do, make sure you trade in reputable exchanges that offer you extra security. 

Also, don’t forget to look for honest reviews both offline and online about the exchange platform you intend to use. Hear what people who have used the platform in the past have to say about it and discuss their trading experiences with the platform with them. 

4. Only interact on official platforms 

Don’t interact with anyone or reply to any message sent from another channel or platform that claims to resolve your queries or complaints. In fact, if any message is sent to you from a line that isn’t the P2P exchange platform’s official line, block it. 

Also, avoid giving your details to unofficial representatives of the platform to help you out with any issue. To ensure that you follow through with this, make sure you trade on a platform that has active customer support so that you can always get answers to your complaints and queries without delays. You can try out the customer support channels before you need their help to see their response speed and decide the most convenient method for you. 

When executing trades, it is better to keep in constant communication with the other person involved on the trading platform. This will help to curb the illicit activities of scammers. Maintaining communication on the platform will also make it hard for anyone to lay false accusations against you.  

5. Stay away from traders that have a low transaction completion rate

Generally, P2P trading platforms allow you to see the total number of successful trades or the success rate of a trader in relation to the total number of trades that the trader has tried. This number can give you a lot of information about the legitimacy of a trader, and with this information, you can determine whether to trade with him or not.

Always go for crypto traders that have high trade completion rates and have also executed many trades. A review from past users can also give you details about others’ experiences. Make sure you take your time to read what previous customers have said about the trader in question. 

What is the most secure P2P crypto trading platform?

What are the Requirements for Paying WES Fee From Nigeria

Bitmama offers the best P2P trading platform for crypto enthusiasts looking to trade securely. You also enjoy the following features: 

1. User experience

A seamless user experience is key to unlocking the full potential of P2P trading. The Bitmama app UX is designed to provide you with an intuitive and visually appealing interface. 

2. Seize the moment with the timer feature

The dynamic nature of crypto trading means that timing is everything. The automatic timer feature secures your trade by giving little room for the buyer to manipulate payments during a trade. 

Whenever a buyer opens a trade with a seller, the timer kicks in, adding a sense of urgency, and security, and ensuring quick and efficient transactions. 

3. Dive into your trade histories 

Knowledge is power, and it is important that you have access to valuable insights. With the Bitmama app, buyers and sellers can easily browse their trade histories. Additionally, you can analyze trends, track past transactions, and gain a deeper understanding of your trading patterns for informed decision-making. 

4. Set dynamic or fixed prices

With the Bitmama app, you have the freedom to set dynamic prices in your ads, allowing you to adapt to market fluctuations by setting your NGN price per USD in seller ads. 

How to use the Bitmama P2P trading feature

Follow the steps below to use the Bitmama P2P trading feature:

Step 1: Login to your Bitmama account on the app

Launch your Bitmama app
Launch your Bitmama app

Step 2: Select “P2P” at the bottom of your home screen

Select P2P
Select P2P

Step 3: Select the action you want to perform “Buy” or “Sell”

Select Buy or Sell
Select Buy or Sell

Step 4: Browse through the available ads listing and select the one that works best for you

Select the ads that fits best
Select the ads that fits best

Step 5: Select your preferred payment method and follow the prompts till completion.

Select payment method
Select payment method

That’s it! You will be credited the trade monetary value or cryptocurrency once the transactions are confirmed on both ends (the buyer and seller).

One basic skill that every crypto enthusiast must have is learning how to spot and avoid P2P scams. It is no news that crypto P2P exchange platforms are riddled with scammers who will try to steal from you. So it is important for you to be extra careful during transactions so you don’t get ripped off your hard-earned money. 

Ready to take control of your crypto trading experience? Join Bitmama P2P trading platform today and discover a new level of convenience and security in buying and selling cryptocurrencies. Download the Bitmama app to get started today.


Emmanuel Agwu

Sep 20, 2023

8 mins read

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