What is P2P Fraud in Crypto: A Complete Guide to Protection

P2P cryptocurrency trading is a direct exchange between two users without the involvement of a central escrow. The convenience of this method comes with serious risks: scammers constantly improve their schemes. Protecting your assets starts with your own vigilance and knowledge of common types of fraud.

P2P Trading: How It Works and Why Risks Arise

When you trade directly with another user in a P2P system, you take responsibility for verifying payments and controlling your assets. The platform acts as a guarantor, but the primary protection is formed by the transaction participants themselves. The first line of defense is knowing typical scam schemes and how to prevent them.

Fake Payment Confirmations: The Main Trick of Scammers

One of the most common methods of theft is sending fake receipts. The scammer sends you a counterfeit check, a screenshot of supposedly completed transfer, or claims that the funds are in an escrow and will only be released after your crypto assets are unlocked.

How to protect yourself:

• Never send assets until you verify that funds have been received in your account or wallet
• Ignore pressure and intimidation attempts demanding urgent transfer
• If you have any suspicions, cancel the deal and immediately contact platform support

Mutual Agreement as a Fraud Tool

During conflict resolution, there is an option called “mutual agreement,” which cancels the order and automatically returns the cryptocurrency to the seller. The scammer may pressure you to click this button, claiming it will restore the normal course of the deal. In reality, this is an irreversible action, after which you will lose everything.

How to avoid the trap:

• Use “mutual agreement” only if you are absolutely sure you haven’t made a payment or have already received confirmed funds return
• Do not rely on screenshots or the counterparty’s words — verify your account independently
• Under pressure, choose “could not agree” and provide your own evidence
• Remember: if you do not select an option before the timer expires, the platform will review the appeal itself, but without convincing proof, the decision may not be in your favor

Phishing Under the Guise of Support: Impersonation of Platform Staff

The scammer contacts you via private messages or email, posing as a support representative, and demands “immediate unblocking of assets to prevent freezing.” These contacts are obtained from your R2R trading ads. Then the scammer may send a phishing email resembling an official one to trick you into sending crypto before payment is received.

Protection methods against phishing:

• Check the username, email address, and phone number from which you are contacted
• Platforms never require you to perform an R2R transaction via email — this is a clear sign of fraud
• Use built-in contact verification services of the platform
• Pay attention to visual elements (profile avatars, message colors, system tags) in chats
• Set a unique anti-phishing code in your account settings for better identification of official messages

Coordinated Attacks: Two Scammers Against One Seller

Two criminal groups simultaneously open orders and create the illusion of urgency and confusion. The first scammer sends part of the payment, the second imitates payment under a different order using the same confirmation. The seller hastily sends assets twice but only receives part of the funds.

Example of an attack: Scammer A places an order for 2000 USDT, scammer B — for 3000 USDT. B sends 2000 USDT, A marks their order as paid. You send assets to A. Then B sends another 1000 USDT, attaches a screenshot of confirmation from A, and demands assets under their order B.

How to avoid the trap:

• Always verify that the payer/recipient name in the payment system matches the confirmed name on the platform
• Remember: scammers reuse the same confirmation multiple times
• Never accept payments from third parties

Scammers-Intermediaries and Schemes with External Channels

The scammer impersonates a P2P merchant and offers a more favorable rate through external channels (Telegram, WhatsApp, social networks). They ask the victim to open an order on the platform after the victim supposedly makes a payment. Meanwhile, the scammer’s bank details are shared with third parties who are unaware of the scam.

Typical scenarios:

• The scammer offers a better rate and asks to open an order after payment (e.g., 100 USD for 120 USDT)
• The scammer provides bank details and asks to confirm receipt by copying them into the P2P chat, creating the illusion of a legitimate deal

Protection against intermediaries:

• Communicate only within the platform’s P2P chat
• Do not agree to any pre-arranged deals via Skype, Zoom, Discord, Telegram, WhatsApp
• Do not trust offers from external channels — the platform cannot assist in disputes
• Ensure the payer’s name matches the data on the platform

Checks and Refunds: Dangerous Financial Instruments

Scammers abuse the refund function and use unsupported checks. They dispute the transaction with their bank, claiming it was erroneous or fraudulent, demanding a refund after you have sent assets. Checks may be fake or canceled immediately after receiving cryptocurrency.

Safety rules:

• Wait for full clearance of the payment and confirmation of funds receipt before sending assets
• Absolutely do not accept checks as a payment method
• Decline payments from third parties (higher risk of chargeback)
• If someone insists on paying by check — this is a sure sign of fraud

Order Cancellation as a Theft Method

The scammer invents a “technical problem” and asks to cancel the order after receiving payment, supposedly to place a new one with corrected parameters. Once the order is canceled, the scammer removes the ad from the page, leaving the buyer with nothing.

How to prevent:

• Never cancel an order after making a payment
• In case of technical issues, file an appeal instead of canceling
• Use only standard dispute resolution procedures

SMS Scams and Fake Confirmations

The scammer sends SMS messages mimicking notifications from your bank or wallet, supposedly confirming receipt of payment. You see a “message from the bank” and send assets, but in reality, the money was never received.

Protection:

• Always verify actual receipt in your account via official banking app or portal
• Do not trust SMS messages as sole proof
• Log into your account and check the payment status yourself

Fake Raffles and “Bonus Campaigns”

Scammers pose as organizers of official raffles and promise free USDT or other tokens if you first send a small amount for “wallet verification” or “prize unlocking.” Of course, you never receive any reward.

How to spot a fake:

• Remember: platforms never require you to transfer funds to receive rewards
• Verify all promotions only on official websites, apps, or official accounts
• Avoid suspicious links and unofficial groups in messengers
• Any offers from random private messages are scams

Cash Payments and Their Uncontrollability

The scammer may hand over counterfeit money during a face-to-face meeting or simply not send crypto after receiving cash. The platform cannot verify such transactions due to lack of legal proof, so you assume full risk of irreversible loss.

Main rule:

• Cash deals carry the highest risk
• Make sure you fully understand these risks before engaging in such transactions

Universal Checklist for Safe P2P Transactions

To protect yourself in P2P cryptocurrency trading, follow this step-by-step scheme:

Before the transaction:

• Check the reputation and history of the counterparty on the platform
• Ensure the payer/recipient name matches verified data
• Clarify the amount, rate, and payment method
• Never communicate outside the platform

During payment:

• Request bank details only within the P2P order chat
• Wait for full payment clearance
• Verify receipt through your bank/wallet personal account
• Do not trust screenshots or SMS confirmations from the counterparty

After payment confirmation:

• Send assets only after final verification of receipt
• Save all screenshots and confirmations
• Document every step of interaction

In case of conflict:

• Never click “mutual agreement” under pressure
• Submit an appeal with full evidence
• Attach payment screenshots, correspondence, and account verification
• Describe the situation in as much detail as possible

Final Principles of Security in P2P Trading

P2P scams in the crypto sphere take many forms, but basic protection principles remain unchanged. Double-check everything, avoid rushing, and do not send funds to third parties. Scammers use psychological pressure, urgency, and complex payment systems — stay vigilant and cautious.

The key to safe P2P transactions is your activity, skepticism, and knowledge of common schemes. The more you understand about potential scams, the better protected you are. Document your actions, verify deposits independently, communicate only on the platform, and do not hesitate to contact support at the slightest suspicion. Remember: your assets and financial security are at stake.