Peer-to-peer (P2P) trading is a quick way to trade digital assets for your local currencies. You can carry out P2P trading on centralized exchanges as well as standalone P2P marketplaces, but they all have one thing in common – risks.
There are scammers everywhere, especially in the crypto industry and they are always looking for ways to steal your assets or money. Crypto trading is generally risky, but not in the sense of being defrauded. It is in P2P trading that such frauds can be carried out.
If you wish to start P2P trading or you already do it, it doesn’t hurt to know these tips by which you can avoid being defrauded and getting separated from your hard-earned money. The following are some tips to have in mind when engaging in P2P trading.
Ensure You Get Payment Before Releasing Assets
One of the easiest ways you can get robbed is by convincing you to release assets you wish to sell when you haven’t received payment for them. For example, someone may claim to have sent you payment for the assets and even send a forged debit receipt or sms to convince you to release the assets.
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Do not fall for it. Only release the assets after you have received the funds in your bank account or wallet and your account balance has changed accordingly. You should never release your assets before confirming this because if not, even the platform cannot help you once they assets have been released.
Do not Accept Payment from Third-Party Accounts
As a rule, you should never accept payment from a third party account. Instead, only accept payment from an account with the buyer’s name. This is important because of what is called a chargeback fraud.
A bad actor could send you payment for your assets through a third party account or any account with a chargeback feature enabled on it. After sending the payment, they will request for a reversal.
To prevent this, do not accept payment from third party accounts. That way, you can appeal and initiate a refund to the buyer’s account since you have evidence of their payment getting reversed as well.
Document Transaction Details
It always helps to document details of your transaction such as your correspondence with the buyer. Screenshots will come in handy here, because there are those who will actually send you the payment to your account, but then contact their bank later with a complaint of an erroneous transfer to your account.
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They will then ask that the bank reverses the transaction to their account. In that case, only screenshots can help because once the transaction is concluded, you’ll not be able to retrieve such details from the P2P platform anymore, leaving you with no evidence to support your claims of being defrauded.
Do not Share Details or Send Funds to Strangers
Another serious way you can be defrauded is by phishing attacks. This happens when an attacker gets you to voluntarily share information about your account that they can use to steal your funds, or get you to send them money.
For example, a scammer may impersonate a P2P platform’s customer service and contact you via email with a link. If you click on the link and provide some key details, they can potentially use such information to steal your funds or assets without you getting anything in return.
To avoid this, never share any sensitive information with anyone who claims to be a customer representative. Also do not click on random links sent to your email or phone. Remember, the customer care will never request any sensitive information about your account.
For your next P2P trade, make sure you have these tips in mind. Many of them are highlighted on the P2P platform, but it never hurts to be reminded over and over again, as your safety depends on it.
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