Peer-to-peer (P2P) cryptocurrency trading offers users direct, decentralized access to buy and sell digital assets. However, this convenience also opens the door to a wide range of scams. While platforms implement security measures, users remain the first line of defense. Understanding common fraud tactics is essential to protect your assets and ensure safe transactions.
This guide outlines the most prevalent P2P crypto trading scams and provides actionable steps to avoid falling victim—helping you trade with confidence and awareness.
1. Fake Payment Receipts and False Escrow Scams
Scammers often send forged bank transfer receipts, payment screenshots, or fake escrow confirmations to trick sellers into releasing cryptocurrency before receiving actual funds.
They may claim the money is “in transit” or that it will only appear in your account after you release the crypto—creating false urgency.
How to Prevent Fake Receipt Scams:
- Always verify funds directly in your bank account or wallet before releasing any cryptocurrency.
- Never rush due to pressure or threats from the buyer. Legitimate transactions do not require immediate action under stress.
- If anything seems suspicious, cancel the trade and report it.
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2. Impersonation Scams
Fraudsters pose as official customer support agents via private messages or phishing emails, claiming you must release crypto immediately to avoid account freezing.
They often gather personal details from P2P chat logs and use them to make their messages appear legitimate. Some even send fake emails mimicking official platform communications.
How to Prevent Impersonation Scams:
- Bybit (or any legitimate platform) will never contact you via email or message to demand immediate action on a P2P trade.
- Always check the sender’s username, email address, and phone number for inconsistencies.
- Verify official channels using your account’s anti-phishing code—a unique phrase set in your security settings to identify real emails.
Recognize official message indicators:
- Customer service messages show a blue verification badge and an earphone icon.
- Messages from real users display their first initial as a profile picture.
- Official chats use orange message bubbles, while user messages are in light pink or dark brown.
Setting up an anti-phishing code in your Account & Security section adds a critical layer of protection.
3. Triangle Scam (Third-Party Payment Fraud)
In this scheme, two scammers coordinate with the same seller. One sends partial payment while the other marks their order as paid. The seller, misled by overlapping proof, releases crypto for both orders but receives only partial or no payment.
Example:
- Scammer A places a $2,000 USDT order.
- Scammer B places a $3,000 USDT order.
- Scammer B sends $2,000 and shares the receipt with the seller, who releases crypto to Scammer A.
- Then, Scammer B sends another $1,000 and reuses the earlier $2,000 receipt, pressuring the seller to release the second batch—resulting in a $2,000 loss.
How to Prevent Triangle Scams:
- Never accept third-party payments.
- Confirm that the payer’s name matches the buyer’s verified identity on the platform.
- Scrutinize every payment proof—scammers often reuse screenshots across multiple trades.
4. Man-in-the-Middle (MitM) Attack Scams
Scammers contact users through external platforms like Telegram or WhatsApp, offering better rates or requesting off-platform communication.
They may ask you to create a new P2P order after sending payment outside the system or trick you into sharing their bank details in an unrelated chat.
Risks:
- All communication occurs off-platform, making it impossible for support teams to intervene.
- You might release crypto to an innocent buyer who unknowingly transfers funds to the scammer.
How to Prevent MitM Scams:
- Only communicate within the official P2P order chat.
- Reject any requests to move conversations to external apps.
- Never trust offers that seem too good to be true—especially those made off-platform.
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5. Chargeback and Check Fraud
Some scammers use payment methods that allow chargebacks (like certain e-wallets or bank transfers). After receiving crypto, they reverse the original payment.
Others use fake or non-negotiable checks, exploiting the delay in check clearing times.
How to Prevent Chargeback & Check Scams:
- Wait for confirmed, irreversible deposits before releasing crypto.
- Do not accept checks under any circumstances.
- Avoid third-party payment processors with high dispute risks.
- If someone insists on using a check, report them immediately.
6. Post-Payment Cancellation Requests
After paying, a scammer may ask you to cancel the order due to “technical issues,” then request a new one.
Once canceled, they disappear—leaving you unable to recover funds if the seller removes their ad.
How to Prevent Cancellation Scams:
- Never cancel a completed order after payment.
- If technical issues arise, submit a dispute immediately through the platform’s support system.
7. SMS Spoofing Scams
Scammers send fake text messages impersonating banks or wallets, falsely notifying you of a received payment.
These messages are designed to trick you into releasing crypto prematurely.
How to Prevent SMS Scams:
- Always log in directly to your bank or wallet to verify transactions.
- Never rely solely on SMS notifications—these can be faked.
8. In-Person Cash Transactions
While some users prefer cash deals, these come with significant risks:
- Receiving counterfeit bills.
- Releasing crypto without guaranteed payment.
- Lack of digital evidence for disputes.
Platforms typically cannot mediate cash trades due to insufficient proof.
Best Practices for All P2P Trades:
- Verify all payments personally—use your own banking interface.
- Match payer names with verified identities on the platform.
- Keep all communication on the P2P chat—never switch to Discord, WhatsApp, or Skype.
- Don’t give in to pressure or threats. Take screenshots of all interactions.
- Report disputes immediately to customer support.
- Maintain detailed records of every transaction—these are vital for appeals.
Frequently Asked Questions (FAQ)
Q: Can I trust a buyer who offers a higher rate off-platform?
A: No. Offers that seem too good to be true usually are. Always complete trades within the official P2P system.
Q: What should I do if someone claims they’ve paid but I haven’t received funds?
A: Ask them to provide transaction IDs and verify through your bank. If unconfirmed, do not release crypto.
Q: Is it safe to reuse a payment screenshot for multiple orders?
A: Absolutely not. Reusing proofs is a red flag and often linked to triangle scams.
Q: How can I verify if a message is really from customer support?
A: Check for official badges, message colors, and use your anti-phishing code. Never act on unsolicited messages.
Q: What’s the safest payment method for P2P trading?
A: Instant, irreversible methods like direct bank transfers (where available) are safest. Avoid checks and third-party apps.
Q: Can I get my money back if I’m scammed off-platform?
A: Unfortunately, platforms cannot assist with off-platform disputes. Always stay within the app’s ecosystem.
Final Thoughts
P2P cryptocurrency trading is powerful—but requires vigilance. Scammers constantly evolve their tactics, from fake receipts to impersonation and complex coordination schemes.
By sticking to platform rules, verifying every transaction independently, and refusing off-site communication, you significantly reduce your risk.
Knowledge is your best defense. Stay alert, trade smartly, and protect your digital wealth.
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