šŸšØšŸšØ P2P Scams in Pakistan's Banking System: An Analysis šŸšØšŸšØ

Introduction:

A rising concern in Pakistan's banking system is the increase in Peer-to-Peer (P2P) scams involving USDT transactions on cryptocurrency platforms like Binance.

šŸ›‘ Scam Mechanism šŸ›‘

The scam involves:

1. Fraudulent buyers initiating P2P transactions.

2. Payment transfer to sellers' local bank accounts.

3. Buyers falsely claiming mistaken payments to banks.

Consequences:

1. Financial loss for sellers.

2. Erosion of trust in P2P trading.

3. Account risks for sellers, including potential closure.

Systemic Vulnerabilities:

1. Inadequate verification processes by banks.

2. Weak consumer protection for sellers.

3. Slow dispute resolution.

Recommendations:

1. Enhanced bank verification procedures.

2. Public awareness campaigns for sellers.

3. Collaborative platform policies between banks and cryptocurrency platforms.

Conclusion:

To mitigate P2P scams, Pakistan requires strengthened regulatory frameworks and cooperation between financial institutions and cryptocurrency platforms.

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