The growing popularity of peer-to-peer (P2P) cryptocurrency trading in India has been accompanied by a proliferation of scams targeting unsuspecting users. Reports indicate scam incidents have surged over the past year, employing tactics like phishing attempts, stolen banking details purchased on the dark web, and fake promises of extraordinarily high returns to defraud victims.
After falling prey to these scams, many users soon discover their bank accounts abruptly frozen by authorities amid police investigations. However, in the process, police often also freeze accounts of unknowing P2P sellers who were unrelated to the scams. Despite being victims themselves, and having provided legitimate services, these sellers face threats of legal action and extortionate demands for reimbursements unless they pay the scammed parties. Left unable to access their frozen funds or resolve complicated legal issues, innocent sellers suffer great financial and emotional distress.
The rise of such complex P2P crypto scams involving identity theft and elaborate fraud tactics highlights the pressing need for more education on safely conducting P2P trades in India. Users urgently need to learn how to identify fake offers, protect their personal data, use escrow services for added security, and thoroughly vet trading partners. More awareness of common scam warning signs and best security practices would go a long way toward curbing scam levels and preventing the legal headaches currently ensnaring many unsuspecting traders just trying to benefit from P2P trading. As P2P crypto trading scales up in popularity, equipping users with knowledge of precautions and smart trading habits is crucial for the sector’s safe, sustainable growth.
