Peer-to-peer (P2P) transactions have become a popular method for trading cryptocurrencies, offering flexibility and ease of access. However, with this convenience comes an increased risk of scams targeting users who may not be fully aware of the dangers. In this post, we’ll explore the most common P2P scams and how to protect yourself while trading.

Why Are P2P Transactions Risky?

P2P transactions allow users to trade directly with each other, cutting out intermediaries. While this can save on fees, it also exposes users to scammers. Without a third party to verify transactions, you may be at risk of fraud, especially when dealing with unknown individuals.

Sargo offers an escrow service to protect both buyers and sellers during P2P trades, ensuring safer transactions. But it’s still crucial to understand how these scams work.

Common P2P Scams and How to Spot Them

1. Fake Payment Proof Scam How it works: The scammer sends a fake payment confirmation (e.g., a doctored receipt) and urges you to release the cryptocurrency before confirming payment. How to avoid it: Always verify the funds in your account before releasing crypto. Don’t trust screenshots—use Sargo’s escrow service to ensure funds are held securely until payment is confirmed.

2. Overpayment Scam How it works: The buyer overpays and then requests a refund, but the initial payment turns out to be fake or canceled. How to avoid it: Never issue refunds for overpayments until the original payment is confirmed and legitimate.

3. Phishing Scam How it works: Scammers direct you to fake websites that look like legitimate P2P platforms to steal your private keys or login information. How to avoid it: Always verify URLs and avoid clicking on unsolicited links. Only trade on trusted platforms like Sargo.

4. Chargeback Fraud How it works: The scammer pays with a reversible payment method, like a credit card, and later initiates a chargeback after receiving the cryptocurrency. How to avoid it: Stick to non-reversible payment methods like M-Pesa or bank transfers.

5. Too-Good-To-Be-True Offers How it works: The scammer offers highly favorable rates, tempting victims into a deal that sounds too good to pass up. Once the cryptocurrency is transferred, the scammer disappears. How to avoid it: Be wary of rates significantly better than the market price. Always verify the legitimacy of the buyer or seller before proceeding.

Staying Safe While Trading P2P

Use Trusted Platforms: Always trade on reputable platforms like Sargo that offer escrow services and dispute resolution.

Verify Payments: Never release cryptocurrency until you’ve confirmed payment in your account. Escrow helps ensure funds are properly secured.

Check User Reviews: Review ratings and feedback from other users to gauge a trader’s reliability.

Stay Informed: Keep up to date with the latest scams and know how to spot suspicious activity.

The Sargo Advantage: Escrow Protection

Sargo’s escrow system ensures safer transactions by holding funds until both parties confirm the terms of the deal have been met. With additional features like user verification and dispute resolution support.

Final Thoughts: Stay Vigilant

P2P trading offers great opportunities, but it’s essential to remain cautious. Use platforms like Sargo that offer protection, and always verify payments and counterparty details before releasing any assets. By staying informed and using secure systems, you can trade safely in the P2P space.

Ready to trade securely? Sign up on Sargo today and experience the benefits of safe, protected P2P trading.

Sargo Disclaimer: By using the Sargo platform and accessing any related content or services (including third-party materials), you assume full responsibility for your actions. Sargo’s role is limited to facilitating cryptocurrency transactions; we do not handle fiat payments. Once a transaction is complete, it is final and cannot be reversed. Please note, Sargo does not mediate disputes over payments once they are finalised, nor are we liable for any losses incurred post-transaction. Ensure you fully verify all details before completing any exchange.