A step-by-step guide to common scams in Binance trading (especially peer-to-peer transactions) + how to stay safe
Fraudulent activities in Binance trading, especially peer-to-peer transactions, can lead to significant financial losses if you're not careful. Below we outline the most common scams, real-life examples, and basic precautions to protect yourself.
1. Common fraud types in Binance trading
A) Fake payment fraud (fake receipts)
How it works:
- USDT is listed for sale on the Binance P2P platform.
- The buyer sends a fake screenshot of the payment, claiming they transferred the funds.
- If you release cryptocurrency without verifying your bank balance, you will lose your money.
Real-life example:
- A buyer sends a fake screenshot of a bank transfer of 50,000 Pakistani Rupees. You released USDT, but the funds never arrived.
How to avoid it:
✅ Never trust screenshots - always verify directly with your bank account.
✅ Keep all your communications via Binance chat (P2P) (for proof in disputes).
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B) Refund fraud (reversible payments)
How it works:
- The buyer pays via PayPal or credit card or any other reversible methods.
- After releasing the cryptocurrency, the buyer requests a refund, claiming fraud.
- The payment gets canceled, and you lose your money and cryptocurrency.
Real-life example:
- A scammer pays via PayPal, then disputes the transaction as "unauthorized." PayPal refunds the amount, leaving you with nothing.
How to avoid it:
✅ Avoid reversible payment methods (stick to direct bank transfers).
✅ Only deal with trusted traders with a good reputation.
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C) Off-platform fraud (going off Binance)
How it works:
- A trader on Binance contacts you but insists on completing the deal via WhatsApp or Telegram or email.
- Once you send cryptocurrencies outside Binance, they disappear.
Real-life example:
- A buyer tells you: "Let’s trade via WhatsApp for a better price." You agree, send USDT, and then you get blocked.
How to avoid it:
✅ Never trade off Binance - always use Binance's escrow account.
✅ Report users who attempt to move transactions off the platform.
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D) Overpayment fraud (fake refund trap)
How it works:
- The buyer sends a larger amount than agreed (e.g., 70,000 Pakistani Rupees instead of 50,000 Pakistani Rupees).
- Requests a refund of the excess amount.
- Later, the original payment is declined (fraudulent transfer), but you have already refunded the original amount.
Real-life example:
- You sell USDT for 50,000 Pakistani Rupees, receive 70,000 Pakistani Rupees, then refund 20,000 Pakistani Rupees, and then the 70,000 Pakistani Rupees are refunded.
How to avoid it:
✅ Do not refund any excess amounts before ensuring the full amount has been paid.
✅ In case of overpayments, contact Binance support immediately.
E) Phishing and account theft
How it works:
- Scammers send fake login links to Binance via email or text messages.
- You enter your credentials, and they steal your account and money.
Real-life example:
- An email says "Urgent: Secure your account now!", but the link leads to a fake Binance site.
How to avoid it:
✅ Always check URLs (make sure they are binance.com).
✅ Use Google Authenticator (2FA) - do not rely solely on text messages.
✅ Never click on suspicious links.
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E) Pump and dump schemes
How it works:
- Telegram groups promote a low-market-cap coin, claiming it will skyrocket.
- Insiders buy early, inflate the price, then sell - leaving others to incur losses.
Real-life example:
- A group says: "Buy XYZ coin - it will reach 500%!" You buy it at $1.50, but it crashes to $0.30 within minutes.
How to avoid it:
✅ Avoid "get rich quick" signals - do your own research.
✅ Beware of unrealistic price predictions.
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2. Basic security tips for Binance trading
✅ Always use the escrow account on Binance (P2P) - never release any cryptocurrency without payment confirmation.
✅ Verify payments in your bank account before completing trades.
✅ Avoid PayPal, credit cards, and other reversible methods in Binance trades.
✅ Enable two-factor authentication (2FA) + withdrawal whitelist for added security. ✅ Do not trade off the Binance platform - WhatsApp/Telegram trades are not accepted.
✅ Beware of requests for refunds of overpaid amounts - it’s a trap.
✅ Keep all your communications within Binance chat to protect yourself from disputes.
By being vigilant and following these precautions, you can trade safely on the Binance platform (P2P) and avoid scams.
