![]() ![]() The mentality here is that when something is too good to be true, it usually is, especially when it comes to money. How to Avoid: In this scenario, it is the responsibility of a person entering into an investment to verify if it is legitimate. Similar to the previous scenario, after the scammer runs away with the money, the victim will report the incident to the police, who will then punish the crypto seller for a crime he did not commit. The victim sends the money to the crypto seller, who then unknowingly sends the Bitcoin to the scammer. Unknown to the victim, the account is actually owned by a crypto seller unwittingly set up by the scammer to be the middle man in the scam. At some point, the scammer will ask the victim to send money to his account, in exchange for the Bitcoin he earned. It can involve fake apps and websites that pretend to show a person’s profits. In this scenario, a scammer finds victims who are looking for quick-profit Bitcoin investments and entices them with “guaranteed” gains that they should get into ASAP. Between October 2020 and March 2021, the FTC received about 7,000 scam reports of this nature, 12x the figure a year ago, causing $80 million in losses. ![]() Unfortunately, with the boom of crypto prices earlier this year, investment scams are on the rise. If romance scams deal with emotions towards a fictitious “lover,” what drives this MITM scam scenario is an individual’s desire to quickly profit from an investment. ![]() Ultimately, you should walk away from a financial transaction like this when things start to be a bit suspicious. However, this can be harder to combat if the scammer has manipulated you emotionally into believing everything he says. How to Avoid: In P2P platforms with escrow services, like Binance P2P, this scenario can be prevented, as the seller and the buyer will know each other’s true details before proceeding with the transaction. The victim, realizing the scheme, will try to cancel the transaction and report the incident to the police, which will then proceed to reverse the transaction and punish the crypto seller without getting to the actual scammer. 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.Īt this point, the scammer runs away with the money. At one point, the scammer will manipulate the victim into helping him with his financial issues by sending some Bitcoin or other crypto. In this scenario, a scammer finds victims via dating apps like Tinder and forges online relationships with them, building trust over time. In 2019, over 25,000 victims reported a total of $201 million in losses from romance scams, the second-most reported crime to the FBI that year, according to the Federal Trade Commission. This may sound like something we will not fall for at first glance, but this scheme is more widespread than you think. The first of the three man-in-the-middle (MITM) scam scenarios we will feature, a romance scam preys on your emotions to distract you from a scammer’s true, nefarious motive. Trade Bitcoin Safely with Tips from the Pros Part of enhancing security for crypto is the task of boosting the security awareness for its users because ultimately, you have the most important role when it comes to keeping crypto secure.Īside from the scams we will enumerate below, we also have the following articles we created recently:ġ1 Tips to Protect Yourself from Scammers We share this information in hopes that our users become wiser about the use of Bitcoin and trading platforms by avoiding these scenarios. īinance P2P, the world’s leading peer to peer platform, has over 300 payment methods and supports over 70 fiat currencies worldwide, allowing for easier and quicker fiat transactions.īelow, we inform our users about common scams that happen during Bitcoin transactions such as P2P trading. Binance P2P supports 300+ local payment methods and 70+ local currencies. Learn more about the escrow service here.Ģ. Once a buyer places an order, the seller’s cryptocurrency will automatically be transferred from the seller’s wallet to a temporary deposit via the escrow service, giving traders peace of mind. Binance P2P’s escrow service protects users. In this article, we share six scams that you should watch out for when transacting with Bitcoin and other cryptocurrencies on P2P platforms like Binance P2P.īut first, here’s a quick reminder on why Binance P2P is the ideal platform for safe and convenient peer-to-peer transactions such as buying and selling cryptocurrency.ġ. At Binance, we take user protection seriously, so we consider it our responsibility to constantly keep our users updated on security tips and advice. ![]()
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