Mastering P2P Trading Safety: Your Guide to Avoiding P2P Scams

Within the dynamic landscape of P2P trading, scams and fraud present significant challenges. Therefore, we're here to provide insights and strategies to help safeguard your assets and navigate P2P trading safely.

What Is a P2P Scam in Crypto?

P2P crypto scams occur on platforms that facilitate direct exchanges between buyers and sellers and often use escrow services for secure transactions. Scammers exploit this setup by bypassing escrow, falsely claiming non-receipt of funds post-payment. This breach of trust leaves users vulnerable to financial losses.

Common Types of P2P Scams

• Fake Receipt Scams/Escrow Transaction Scams

Scammers usually provide forged receipts or screenshots as proof of payment. They may also act as a phony counterparty that insists on an escrow transaction, and claims that payment would only be reflected in your wallet after you release your crypto holdings.

• Bybit Impersonators

Scammers pose as Bybit representatives, urging you to release your crypto holdings to prevent them from being frozen. They may obtain your contact info from ads or the P2P Order Chat and ask for your email claiming it's for a Bybit P2P escrow service. They may send phishing emails mimicking Bybit to trick you into releasing crypto before you receive your payment.

• Triangle Scams

Two scammers simultaneously place orders with the same seller, exploiting their trust and urgency to sell. This may lead the seller to release coins without proper verification, risking the possibility of releasing funds twice but only receiving half of the intended amount or less for the assets sold.

• Man-in-the-Middle (MITM) Scams

Scammers pretend to be P2P Advertisers, contacting potential victims through external channels such as Telegram or WhatsApp. They may share false bank account details and provide actual Bybit P2P advertisements.

• Chargeback/Check Scams

Scammers exploit payment method chargebacks or use bounced checks to reverse transactions after crypto has been released.

• Cancellation After Payment Completed

Scammers ask you to cancel orders after a payment is made, citing technical issues.

• SMS Scams

Scammers may send SMS/text messages posing as banks or wallet apps, closely resembling authentic notifications. These messages often falsely claim that recipients have received a payment from their counterparty.

• Cash in Person Transactions Scams

Scammers may use counterfeit money or withhold crypto holdings after receiving payment. Bybit may have difficulty in verifying these transactions due to a lack of legal evidence. Traders opting for Cash in Person transactions should be mindful of the potential risk of irrecoverable loss.

How to Protect Yourself From P2P Scams

• Check All P2P Transactions

Always check your crypto wallet or bank account to confirm that the P2P transaction has been completed before authorizing any crypto transfers. Avoid relying solely on the proof provided by the buyer, which could be doctored.

• Verify the Counterparty's Identity

Confirm that the payment account details match the counterparty's identity on Bybit. Bybit requires Identity Verification for advertisers and P2P merchants, enhancing platform safety and asset protection.

• Use Bybit's Communication Platform

Keep all communications within the P2P Order Chat. Avoid external channels like Skype or WhatsApp to safeguard your rights.

• Submit an Appeal to Bybit’s Customer Support

If you’re unable to reach an agreement, please contact our Customer Support team immediately for assistance. You should always report any suspicious activities as soon as possible.

• Be Vigilant and Document Everything

Take screenshots of all interactions and transactions as essential evidence. Do not engage in transactions if anything seems suspicious, and stand firm against scare tactics.

Additionally, if you are passionate and keen to contribute to the safety and security of the P2P community, please visit our Announcement Center here and join us as a P2P Patrol today!

For more information on P2P Trading safety, please refer to this page.