Common Scams To Watch Out For
If you are new to cryptocurrency, some ill-intentioned users may try to take advantage of you, just as they do with other kinds of investments. These are some of the most common types:
Also known as triangulation fraud, it’s a scam where your trading counterparty uses a third-party’s payment account for transactions. He or she pays you with the other’s account before you release the crypto. Some may send you new payment account information through chat messages and ask you to transfer the money to that account. After you transfer the money, they will claim they do not receive the money and thus not sending you the crypto.
The best way to avoid this situation is to verify the user’s identity. Before you start the transaction, make sure that the payment account details correspond to the person’s identity. DO NOT transfer the money or release the crypto if the payment account is not the buyers’ or sellers’.
Another common scam is the reversible payment. In such cases, a buyer first transfers the money to your bank account to make you release the crypto. Within 72 hours, the buyer calls the bank and tells them that he has not made the purchase, so the bank will cancel the payment, causing you a loss in crypto.
An easy way to protect yourself against reversible payment is to ask the buyer to send you a photo of the transfer record as proof of his or her purchase before releasing crypto. The user cannot claim that he or she did not make the payment.
So,Before you start selling or buying cryptocurrency, it’s better to get familiar with the environment by joining your local crypto community and knowing the local merchants on Binance.