let’s go step-by-step and cover the main types of fraud in Binance trading (especially in P2P), real examples, and practical precautions so you can avoid them.
1. Types of Fraud in Binance Trading
A) Fake Payment in P2P
How it works:
You sell USDT to a buyer on Binance P2P.
The scammer uploads a fake payment receipt (edited screenshot) but never actually sends money.
If you release the crypto without confirming in your bank account, you lose it.
Example:
A buyer sends you a “screenshot” showing a bank transfer of PKR 50,000. You release USDT thinking payment is real, but later you see no money in your bank.
Precaution:
Never rely on screenshots — always check your actual bank account balance before releasing crypto.
Only chat inside Binance P2P chat (all messages are recorded).
B) Chargeback Scam
How it works:
You receive payment for selling crypto.
Later, the buyer contacts their bank or payment provider to reverse the payment (claiming it was fraud).
Your bank reverses the amount, and you lose both the money and crypto.
Example:
Scammer sends money via PayPal or card. After you release USDT, they open a “dispute” with PayPal saying “unauthorized transaction” — PayPal refunds them.
Precaution:
Avoid reversible payment methods like PayPal or credit cards in P2P.
Use direct bank transfers with strong verification.
C) Off-Platform Deals
How it works:
A scammer contacts you inside Binance but asks to complete the deal outside (WhatsApp, Telegram, etc.) to “save fees” or “fast deal.”
Once outside Binance, they can disappear without sending payment.
Binance will not protect you because the trade was outside the platform.
Example:
A buyer on Binance P2P says, “Let’s do this directly on WhatsApp for better price.” You agree, send crypto, and the person blocks you.
Precaution:
Never agree to trade outside Binance. Always complete trades within Binance escrow protection.
D) Overpayment Trap
How it works:
The buyer “accidentally” sends more money than the agreed price.
Then they ask you to refund the extra amount.
Later, their original payment bounces (fraudulent cheque, stolen bank account), but you’ve already refunded your own money.
Example:
You sell USDT for PKR 50,000. Buyer sends PKR 70,000, claims “mistake,” and asks for PKR 20,000 refund. Later, the PKR 70,000 is reversed by the bank — you lose PKR 20,000 of your own money.
Precaution:
Never refund until you confirm with your bank that funds are legitimate and irreversible.
If overpaid, contact Binance Support immediately.
E) Phishing & Account Takeover
How it works:
Scammers send fake Binance login pages or emails (“Your account is at risk, login now!”).
You enter your credentials, they steal your account.
They trade or withdraw your funds before you notice.
Example:
You receive an email saying, “Suspicious login detected — click here to secure your account.” The link is fake, but looks like Binance.
Precaution:
Always check the website URL is binance.com.
Enable 2FA (Google Authenticator, not SMS).
Never click unknown links.
F) Pump & Dump Groups
How it works:
Telegram/WhatsApp groups claim they know a coin that will “moon.”
They coordinate to buy, pumping the price.
Once price rises, insiders dump their coins, price crashes.
Example:
A group says “Buy XYZ coin now, it will go up 500%.” You buy at $1.50. Ten minutes later, it drops to $0.30.
Precaution:
Avoid trading based on “secret signals” or hype groups.
Only invest in coins you have researched yourself.
2. Golden Precautions to Avoid Binance Fraud
Always trade inside Binance P2P escrow — never outside.
Confirm payments in your own bank account before releasing crypto.
Avoid reversible payment methods like PayPal.
Enable 2FA & withdrawal whitelist in Binance security settings.
Don’t trust strangers on Telegram/WhatsApp offering deals.
Be careful with overpayment — it’s a trap.
Keep all communication inside Binance chat for dispute protection.
