As cryptocurrency trading continues to grow in Pakistan, platforms like Binance P2P have become essential for buying and selling USDT using local banks such as United Bank Limited (UBL). However, with popularity comes risks, and a sophisticated scam is targeting Pakistani users, leading to significant losses in PKR. This article aims to educate and empower you to stay safe while trading on Binance P2P. Remember, knowledge is your best defense against fraudsters.

How the Scam Works

Fraudulent merchants are exploiting vulnerabilities in the Binance P2P system to deceive buyers and sellers. Here's a breakdown of their tactics:

High-Volume Sell Ads: Scammers deposit over 10,000 USDT into their wallets and post attractive sell ads for USDT at competitive rates. They often use UBL for payments, require multiple verifications on their ads, and set a high minimum order limit of 500,000 PKR to target larger transactions.

Building False Trust: Once you place an order, the merchant demands extra verifications (like ID proofs or selfies) to seem legitimate. They then shift communication to WhatsApp, providing bank details and urging you to transfer funds immediately—without verifying the order on the Binance app.

The Trap: After you make the payment and try to mark the order as "paid," the merchant ignores the verification, causing the order to cancel automatically. You've lost your money, but they've pocketed it. They repeat this with 5-6 buyers, quickly recovering their 5,000 USDT security deposit.

Exploiting Buy Orders and Quick Features: These scammers also run buy ads, acquiring USDT and instantly transferring it to exchanges like OKX, Bybit, or MEXC via TRC20. For smaller orders, they use "quick cancel" after payment or "quick receive" to grab funds and vanish. The appeal process takes over an hour, giving them time to withdraw.

Broader Ripple Effects: Buyers aren't the only victims. When scammers buy USDT from honest sellers using third-party accounts, victims report to banks, leading to sellers' accounts being frozen. Losses can escalate from 40,000 USDT per scam to 80,000 USDT, affecting both sides.

Shifting to Non-Merchant Accounts: When close to detection, scammers switch to regular user accounts (after 20 trades, they can post ads). They buy USDT at inflated rates (e.g., 310-315 PKR when market is 290 PKR) with huge volumes (>10,000 USDT), accepting third-party payments via UBL—red flags that legitimate traders avoid.

Recent account suspensions on Binance due to unresolved disputes are often linked to this scam, as fraudsters don't care about losing their deposits after stealing much more.

Red Flags to Watch For

Ads insisting on external communication like WhatsApp before order verification.

Unusually high buy rates or large volumes from non-merchants accepting third-party payments.

Merchants using only UBL and demanding payments without app confirmation.

Pressure to pay quickly without following standard P2P steps.

How to Protect Yourself

Stick to the App: Always communicate and verify orders within the Binance app. Never shift to WhatsApp or other apps.

Verify Merchants: Check completion rates, reviews, and avoid those with suspiciously high limits or UBL-only payments.

Use Small Test Orders: Start with smaller amounts to test reliability.

Report Suspicious Activity: If scammed, appeal immediately and report to Binance support. For bank issues, contact your bank promptly.

Advocate for Changes: Binance could help by removing "quick cancel/release" options, tightening merchant verification, and adding withdrawal delays for scrutiny.

As Pakistani traders, we're building a strong crypto community—let's keep it secure. If you've encountered this scam, share your experiences in the comments (anonymously if needed) to warn others. Stay vigilant, trade smart, and let's push for a safer P2P ecosystem!