How You Might Get Involved in Illegal Activity While Using P2P Trading with Bank Transfer?

There are many ways to buy and sell cryptocurrency; one of them is by bank transfer. Each method has its own advantages and disadvantages. However, the disadvantage becomes worse when a third party finds a way to get involved in it. And that way is P2P trading.

P2P is a way through which a user can buy and sell crypto directly from another user using the payment method of their choice. This method helped those who do not understand technical language, and that’s why scammers scammed these people by making them their victims. The problem here is not money loss but participation in an illegal activity that you may not even be aware of.

How does P2P work?

Before using the P2P platform, you need to add your bank account details so that the broker can easily transfer money to you. These details will be visible to the broker only when you sell crypto. The user will also be able to see the details of the broker when opening a sell order.

How can you Fall Into Illegal Activity?

How You Might Get Involved in Illegal Activity While Using P2P Trading with Bank Transfer?
How You Might Get Involved in Illegal Activity While Using P2P Trading with Bank Transfer?

You are more likely to get involved in illegal activity when you are selling crypto and asking for money (fiat) directly into your bank account. Sadly, that illegal activity is transferring money from an unknown person’s bank account to your bank account. But how?

The scammer who is selling crypto by posing as a P2P trader already has access to another person’s bank account through the wrong means. When you sell crypto to him, he transfers the money from this bank account to your bank account and not his account.

For example, user A sells crypto to broker B and asks for money in his bank account. Correctly, B should have sent money to A from his bank account, but he did not do so. Rather, the person sends money to A from C’s bank account, to which B has wrongly gained access.

In this situation, user A remains safe until person C takes any kind of legal action. Although person C has all the information about user A in his bank transfer history, there is every possibility of taking legal action. If authorities take action, they will charge user A with cybercrime. As a result, the bank account and all the money kept in it will be frozen indefinitely.

What Should you do to Avoid It?

You have no option but to be careful while taking money. Keep in mind that the name shown on the dashboard should be credited to the bank account only with the same name. But if the broker has sent the money, and it has come to your bank account, then you cannot do anything.

If the amount is large and you feel that the transaction is coming in the wrong way, then you can stop the broker’s crypto payment (till you verify the transaction). You can also file a complaint for receiving a wrong transaction by yourself. It will be beneficial that at least you are not involved in wrongdoing.
You can use a separate bank account for P2P trading; this will help avoid asset freezing.

Personal Note From MEXC Team

Check out our MEXC trading page and find out what we have to offer! There are also a ton of interesting articles to get you up to speed with the crypto world. Lastly, join our MEXC Creators project and share your opinion about everything crypto! Happy trading!

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