In peer-to-peer (P2P) cryptocurrency trading, scammers use tactics like the “paid-but-canceled” scam to trick buyers into canceling orders after making payment, resulting in financial loss. This post explains how the scam works and how you can avoid it on Sargo.
What is the Paid-but-Canceled Scam?
In this scam, fraudsters posing as sellers convince buyers to cancel their P2P trade after payment has been made. Here’s how it typically happens:
- Attractive Offer: The scammer lists a crypto sale ad at a tempting price.
- Buyer Pays: The buyer transfers money to the scammer’s account and contacts them.
- Excuses to Cancel: The scammer asks the buyer to cancel the order, giving a false reason such as a technical issue.
- Order Canceled: Trusting the scammer, the buyer cancels the order, losing both the payment and the cryptocurrency.
Examples of the Scam in Action
- Example 1: After receiving payment, a scammer claims there was a problem with the transaction and asks the buyer to cancel the order. Once canceled, the scammer vanishes with the money.
- Example 2: A scammer asks for the buyer’s phone number or social media contact, convincing them offline to cancel the trade after payment. The buyer is left with nothing.
How to Protect Yourself
- Don’t Cancel After Payment: Never cancel an order after paying unless you have received a refund first.
- Be Cautious: Watch out for sellers asking for contact details or making excuses to move communication off-platform.
- Keep It on Sargo: Always communicate through Sargo’s platform to keep conversations secure.
- Use Sargo’s Escrow: Sargo’s escrow service holds funds until both parties confirm the transaction, adding protection against fraud.
What to Do If You Suspect a Scam
- Appeal Immediately: If the seller has your payment but hasn’t released the crypto, raise an appeal through Sargo.
- Document Everything: Save all communications and payment details in case you need to escalate the issue.
- Report the Incident: Contact Sargo support if you believe you’ve been scammed. Reporting helps prevent others from falling victim.
Final Thoughts
The paid-but-canceled scam preys on trust, but you can protect yourself by staying cautious. Never cancel an order after paying unless the seller returns your funds first. Stick to communicating within Sargo, and use the platform’s escrow service to ensure secure transactions.
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.