SettlePact

P2P crypto scams, and how to avoid them

Most scams on Binance P2P, Telegram groups and other P2P marketplaces follow the same few patterns. Once you know them, they're much easier to spot. Here's how each one works and what protects you.

See the scams I've been scammed

The most common P2P crypto scams

1. "You send first"

The other person asks you to send your crypto or money first, promising to pay straight after. They often build trust with small trades before a big one, then disappear.

Protect yourself: never go first with someone you don't know. Use escrow that holds both sides until both have paid.

2. Fake payment proof

The buyer sends a screenshot, an SMS or an email that looks like it's from your bank or the marketplace, saying the money is on its way or "on hold until you release the crypto". No money has been sent.

Protect yourself: release only when the money shows in your own bank app, opened yourself. Platforms never hold a payment until you release crypto.

3. Payments that get reversed

The buyer pays with a method that can be reversed, such as PayPal, a card, or some payment apps, then files a chargeback or an "unauthorized payment" claim once they have your crypto.

Protect yourself: accept only payments that can't be reversed, like bank transfers, and never accept PayPal or card payments for crypto.

4. Stolen money (the "triangle" scam)

The scammer sells something fake to a third person and has them pay you directly. You see a real payment and release the crypto. When the victim reports the fraud, your bank account is frozen and the money is clawed back.

Protect yourself: only accept payment from an account in the exact name of the person you're trading with. Be wary of payment notes about goods or services, and of buyers who are in a rush.

5. Fake support agents and fake escrow agents

Someone messages you claiming to be from the marketplace's support team, or offers to act as a trusted "middleman" in a group chat. They ask you to send funds to them or to a "safe" address.

Protect yourself: real support never messages you first and never asks you to send funds. A smart-contract escrow never needs a person to hold your money.

6. Swapped addresses

A scammer sends you a deposit address in chat that looks right but belongs to them. Malware on your device can also swap an address you copied.

Protect yourself: only copy addresses from the deal page, and check the first and last few characters after pasting. On SettlePact, paste it into Verify address to confirm it's a genuine vault for your deal.

7. "Recovery" scams after you've lost money

After a scam, people posting as hackers, lawyers or "blockchain investigators" offer to recover your crypto for an upfront fee. They take the fee and nothing comes back.

Protect yourself: nobody can reverse a crypto transfer for a fee. Anyone who promises to is running a second scam.

What escrow does and doesn't protect

Smart-contract escrow stops

  • The other side taking your crypto without paying
  • Fake escrow agents holding your money
  • Deals that stall: the timer refunds everyone

It can't stop

  • A bank payment reported as stolen later
  • Malware on your own device
  • You sending funds outside the deal

On SettlePact, both sides of a crypto trade deposit into vaults that can only pay the deal's wallets or refund. In crypto-for-cash deals, the bank's own signed payment email is checked, not a screenshot, and the payment must come from the buyer's name written in the deal. How crypto escrow works.

If you've been scammed

  1. Stop sending money. Scammers often ask for "fees" to release funds. Don't pay them.
  2. Save everything: chats, usernames, wallet addresses and transaction IDs.
  3. Report it to the platform where you met the scammer, and to the exchange that received the funds if you know it. Exchanges can sometimes freeze stolen funds if they hear quickly.
  4. Report it to the police or your national fraud reporting service, such as IC3 in the US.
  5. Ignore anyone offering to recover your funds for a fee. See scam 7 above.

Questions

Can I get my crypto back after a P2P scam?

Usually not. Crypto transfers can't be reversed, so recovery depends on the platform, the police or an exchange freezing the scammer's funds. Report it quickly, and never pay anyone who promises to recover it for a fee.

Is a payment screenshot proof that I've been paid?

No. Screenshots, SMS messages and emails are easy to fake. Only release crypto once the money shows in your own bank or payment app, opened yourself rather than through a link.

Why did my bank freeze my account after I sold crypto?

Often because the buyer paid with stolen money or money taken from a scam victim. When the real owner reports it, the bank freezes the account that received it. Only accept payment from an account in the name of the person you're trading with.

How do I know a deposit address is genuine?

Only copy addresses from the deal page itself, never from a chat. On SettlePact you can paste any deposit address into Verify address to confirm it's a real vault for your deal.

Does escrow stop every P2P scam?

No. Smart-contract escrow stops the other side from taking your crypto without paying, but it can't stop a bank payment being reversed or reported as stolen later. Stick to payments that can't be reversed, from accounts in the buyer's own name.

Never go first again

A SettlePact deal holds both sides in a smart contract until both have paid, or refunds everyone.

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