Peer-to-peer (P2P) trading on Binance has become a popular way for users to buy and sell cryptocurrencies directly with one another, offering flexibility with over 700 payment methods and zero trading fees. However, the decentralized nature of P2P transactions, combined with the pseudonymous aspects of cryptocurrency, has made Binance P2P a target for increasingly sophisticated scams. In 2025, new and emerging P2P scams are exploiting technological advancements, social engineering tactics, and gaps in user awareness. This article explores these scams in detail, their mechanics, real-world impacts, and actionable steps to stay safe, drawing on recent trends and insights from Binance’s security initiatives.
The Rise of P2P Scams on Binance
Binance P2P allows users to trade cryptocurrencies like Bitcoin (BTC), Tether (USDT), and Binance Coin (BNB) directly, with the platform acting as a facilitator through its escrow service. This service temporarily holds the seller’s crypto until the buyer’s payment is confirmed, adding a layer of security. Despite these measures, scammers exploit the trust users place in the platform and the complexity of cross-border transactions. According to Binance’s 2024 Anti-Scam Refund Initiative, over 47,000 malicious addresses were flagged, and more than $73 million in user funds were recovered or frozen, with 20% linked to external scams. The 2025 Chainalysis Crypto Crime Report notes a decline in illicit crypto activity to 0.14% of transactions, yet P2P scams remain a persistent threat due to their reliance on human error rather than platform vulnerabilities.
Emerging P2P Scams in 2025
1. AI-Generated Fake Payment Proofs
Scammers are leveraging artificial intelligence to create highly convincing fake payment proofs, such as bank transfer screenshots or e-wallet confirmations. These proofs mimic legitimate transaction details, including correct bank names, timestamps, and transaction IDs, to deceive sellers into releasing crypto from escrow prematurely.
How It Works: A buyer agrees to purchase USDT via bank transfer. After the trade is initiated, they send a doctored screenshot showing a completed payment. The seller, trusting the screenshot, releases the crypto, only to later discover the payment never arrived. In some cases, scammers use AI to generate SMS notifications resembling those from banks or payment apps, exploiting the seller’s reliance on text-based confirmation.
Real-World Impact: A Reddit user reported losing $5,000 in USDT after releasing crypto based on a fake bank transfer screenshot, with the buyer’s account later frozen but lacking funds for a refund. Such scams are particularly damaging in regions with slower banking systems, where payment verification can take hours.
Red Flags: Inconsistent fonts, generic templates, or slight discrepancies in transaction IDs. Scammers may pressure sellers to release funds quickly, citing “urgent” needs.
2. Man-in-the-Middle (MitM) Scams with External Platforms
Man-in-the-Middle scams have evolved in 2025, with fraudsters posing as reputable merchants and luring victims to communicate via external platforms like Telegram or WhatsApp. These scams exploit Binance’s policy that transactions outside the platform are not protected.
How It Works: A scammer contacts a victim outside Binance, claiming to be a verified merchant with a lucrative P2P offer. They provide bank details and a link to a Binance P2P ad, instructing the victim to confirm these details in the P2P chat. Unknowingly, the victim shares the scammer’s bank details with an unrelated buyer on Binance, who sends payment to the scammer’s account. The victim releases the crypto, believing the transaction is legitimate, but the payment goes to the scammer.
Real-World Impact: FMCPAY reported cases where victims lost thousands of dollars in USDT due to MitM scams, with no recourse from Binance since the communication occurred off-platform. These scams are prevalent in regions with high P2P activity, such as Pakistan and India.
Red Flags: Requests to move conversations Red Flags: Insistence on external communication, third-party bank accounts, or offers that seem too good to be true.
3. Fake SMS Spoofing and Phishing Calls
SMS spoofing has surged in 2025, with scammers sending fake text messages that appear to come from Binance’s official number, exploiting the trust users place in two-factor authentication (2FA) messages. These scams often lead to phishing calls that trick users into revealing sensitive information.
How It Works: Victims receive an SMS claiming their Binance account has been compromised, a new device has been added, or a passkey has been reset. The message includes a phone number to call for “assistance.” Upon calling, scammers posing as Binance staff request account details, 2FA codes, or instruct users to transfer crypto to a “secure” wallet. In some cases, QR codes sent via WhatsApp grant scammers account access when scanned.
Real-World Impact: The Swiss National Cyber Security Centre reported a spike in such scams in January 2025, noting that victims often had legitimate Binance accounts, suggesting targeted attacks. Victims have lost entire account balances after sharing codes or scanning QR codes.
Red Flags: Unsolicited messages about account issues, requests for codes or logins, or QR codes from unknown sources.
4. Trust-Building Micro-Transaction Scams
A new tactic involves scammers completing small, legitimate P2P trades to build trust before executing larger fraudulent transactions. This scam preys on users’ reliance on positive feedback and trade history.
How It Works: A scammer posts an ad offering USDT at a slightly below-market rate for a small amount (e.g., $50). The buyer completes the trade successfully, receiving the crypto after payment. The scammer then messages the buyer, offering a larger trade (e.g., $5,000) at the same rate, but only through a private channel to “avoid Binance fees.” The buyer sends payment to a personal bank account, and the scammer disappears.
Real-World Impact: Binance Square highlighted cases where buyers lost significant sums after falling for this tactic, particularly in regions with high P2P adoption like Pakistan. The initial small trade creates a false sense of security, bypassing the platform’s protections.
Red Flags: Offers to continue trades off-platform, promises of fee avoidance, or sudden shifts to personal bank accounts.
5. Chargeback Fraud with Reversible Payments
Chargeback fraud remains a persistent issue, evolving with new payment methods in 2025. Scammers use reversible payment methods like PayPal, credit cards, or even certain e-wallets to purchase crypto, then initiate chargebacks to reclaim the payment while retaining the crypto.
How It Works: A buyer purchases crypto using a reversible payment method. After receiving the crypto, they file a chargeback with their payment provider, claiming the transaction was unauthorized. The payment is reversed, but the crypto remains in the buyer’s wallet. Scammers often use stolen payment accounts to obscure their identity.
Real-World Impact: Sellers have reported losses in the thousands, with Binance unable to intervene once the crypto is released. This scam is particularly common in regions where chargeback policies are lenient.
Red Flags: Buyers insisting on reversible payment methods, lack of KYC verification, or accounts with minimal trade history.
Binance’s Response and Security Measures
Binance has implemented robust measures to combat P2P scams, as outlined in its 2024 Anti-Scam Refund Initiative and partnerships with law enforcement. Key efforts include:
Escrow Service: Ensures crypto is held until payment is verified, reducing the risk of premature release.
Temporary Fund Freeze: Funds transferred to flagged accounts are frozen for 24 hours, allowing time for appeals.
Tailored Alerts: Over 15,000 daily alerts warn users in high-risk areas about potential scams.
Blacklist Maintenance: More than 47,000 malicious addresses were flagged in 2024, preventing further losses.
Global Collaboration: Partnerships with authorities in India, Hong Kong, and elsewhere have led to arrests and fund recoveries, such as the $6 million seized in the E-Nugget scam.
KYC and Verified Merchants: Stringent identity verification and a yellow badge for trusted merchants reduce impersonation risks.
Despite these efforts, Binance emphasizes that user vigilance is critical, as many scams exploit human error or off-platform communication. The platform recovered over $73 million in 2024, but legal recourse remains challenging due to the pseudonymous nature of crypto and varying global regulations.
How to Protect Yourself from P2P Scams in 2025
To stay safe on Binance P2P, adopt these best practices:
Verify Payments Directly: Always check your bank account or e-wallet for payment confirmation before releasing crypto. Ignore screenshots, SMS notifications, or emails claiming payment completion.
Stay On-Platform: Conduct all communication and transactions within Binance P2P. Avoid external apps like Telegram or WhatsApp, as these void Binance’s protections.
Use Verified Merchants: Trade with users displaying a yellow badge, indicating enhanced KYC and trade history checks.
Enable 2FA: Secure your account with two-factor authentication, but never share 2FA codes with anyone, including alleged Binance staff.
Check Feedback and History: Prioritize merchants with high completion rates and positive feedback. Avoid new accounts or those with negative reviews.
Be Skeptical of Deals: Offers significantly above or below market rates are often scams. Research market prices before trading.
Keep Records: Save screenshots, chat logs, and transaction confirmations for evidence in case of disputes.
Report Suspicious Activity: File appeals on Binance immediately if you suspect a scam, providing all relevant evidence.
Avoid Reversible Payments: Prefer bank transfers or payment methods with low chargeback risk. Verify the buyer’s payment account matches their KYC details.
Educate Yourself: Stay updated on scam trends via Binance’s blog, Binance Square, and trusted crypto communities.
The Future of P2P Trading on Binance
As Binance P2P grows, scammers will continue to adapt, leveraging AI, social engineering, and emerging technologies. However, advancements in blockchain forensics, global law enforcement collaboration, and user education are reducing illicit activity. The 2025 Chainalysis report highlights a decline in crypto crime, and Binance’s proactive measures—such as its Financial Intelligence Unit and anti-scam campaigns—are setting industry standards.
For users, the key to safe P2P trading lies in awareness and adherence to platform guidelines. By staying vigilant, verifying payments, and using Binance’s security features, traders can minimize risks and enjoy the benefits of P2P trading. As Dr. Pooyan Ghamari noted in XE Gold Magazine, “The more vigilant you are, the safer your Binance P2P trading experience will be.” In 2025, knowledge and caution are your best defenses against the evolving landscape of P2P scams.