Secret methods of deception on the Bybit crypto exchange: Unraveling the tricks through P2P

By Alfsmm Agency 

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In recent years, cryptocurrencies have moved from a narrow circle of interest to one of the main trends in the world of financial technology. Due to their decentralized structure, ability to provide anonymous transactions and the potential for significant growth in value, cryptocurrencies have attracted the attention of investors, traders and ordinary users around the world. In addition, they have opened up new prospects for cross-border transfers and investments without intermediaries and high commissions.

One of the main elements in the cryptocurrency ecosystem is P2P (peer-to-peer) exchange, which allows users to make transactions directly with each other without the intermediation of centralized structures. This method of exchange not only highlights the decentralized nature of cryptocurrencies, but also gives users greater flexibility and control over the terms of transactions. However, with the increasing popularity of P2P trading, the risk of encountering fraud increases, so it is important to choose a reliable platform for such transactions.

Bybit, one of the leading cryptocurrency exchanges nowadays, not only provides its clients with traditional trading tools, but also P2P exchange services. The platform has gained trust due to its reliability, ease of use and wide range of services provided. However, like any popular platform, Bybit is subject to the risk of fraud, which can negatively impact the experience of its users. In this article, we will dive into the world of P2P exchange on the Bybit platform, analyze how scammers can use this system to their advantage, and consider ways to protect against potential threats.

P2P (peer-to-peer) exchange is the process of direct trading of cryptocurrencies between participants without the participation of centralized intermediaries such as regular banks or crypto exchanges. In a P2P system, each participant acts as both a buyer and a seller, exchanging assets directly with other participants in the network. This process is carried out through specialized platforms that provide the necessary tools for safe trading, such as escrow systems and rating mechanisms.

Advantages of P2P exchange:

1. Decentralization: Disintermediation increases sustainability and reduces the risk of censorship.

2. Minimized fees: Direct trades between users reduce transaction costs compared to centralized exchanges.

3. Global accessibility: Users from different countries have the opportunity to exchange, even with limited access to traditional financial services.

4. Transaction flexibility: Users can define their own exchange terms, including exchange rates and payment methods.

Risks of P2P exchange:

1. Possibility of fraud: The P2P system increases the likelihood of encountering fraudsters, since transactions are carried out directly between users.

2. Cyber ​​Security: Users are responsible for protecting their accounts and funds from cyber threats.

3. Legal Risks: In certain jurisdictions, the legal status of P2P exchanges remains uncertain, which may lead to legal issues.

On P2P crypto exchanges, exchanges are usually carried out through a special section on the platform where users can post their offers to sell or buy cryptocurrencies. After placing an offer, other participants can view it and, if interested, initiate a transaction.

1. Offer selection: The buyer selects the most suitable offer and initiates the transaction.

2. Blocking of funds: Cryptocurrencies sold are temporarily blocked in the seller’s account in the platform’s escrow system to ensure the security of the transaction.

3. Payment: The buyer pays the seller in accordance with the terms of the transaction through one of the available payment methods.

4. Payment Confirmation: After receiving payment, the seller confirms the transaction on the platform.

5. Cryptocurrency release: The platform releases the cryptocurrency from the seller’s escrow account and transfers it to the buyer’s account.

To ensure security and trust between users, P2P platforms usually offer rating and feedback systems, as well as access to customer support to resolve disputes. These measures help users assess the reliability of their counterparties and provide a means to resolve potential problematic situations.

How scammers manipulate P2P on the Buy Bit platform: Illustration based on real cases - Deception schemes

Every day new negative reviews appear on the Internet, confirming the presence of scammers on the Bybit platform. Some clients claim that privacy policies leave them unprotected and force them to contact law enforcement.

Scheme #1

The client decided to purchase the USDT stablecoin through the Bybit platform. On the platform, he found a seller with only 8 open orders. The seller asked for a personal card number to make a transfer through personal messages and began to delay the process, making excuses for the human factor. Bybit set a 15-minute timer to complete the trade. In the last two minutes, the seller provided a card number, which turned out to belong to a third party. 30 seconds before the end of the timer, the buyer transferred 90 thousand rubles through the bank, but discovered that the timer on the platform had already expired when he returned. However, the "confirm payment" button remained active. Bybit immediately unfrozen the transferred amount for the scammer, who even requested confirmation in the form of a check from the bank. The client then checked the seller's profile again and discovered that there were no confirmed transactions in his history. The defrauded client turned to both the bank and Bybit for support. Since a minimum amount remained in the fraudster’s account, Bybit returned it to the defrauded client, and the bank reported that the client himself was to blame for what happened.

Scheme #2

A user on the ByBit platform chose LuckyTrade for a P2P exchange, which had already been blocked for fraudulent activity. During the transaction, LuckyTrade tried to convince the user to transfer cryptocurrency, allegedly claiming that funds had been received into the Baybit-Sberbank account. However, when the user did not agree to lose his funds, the scammer began using pressure methods, filing an appeal and posing as ByBit support, sending demanding messages to the user.

It is important not to succumb to such pressure and not to make sudden transfers, especially if there is no confirmation of the receipt of funds. The scammer likely used multiple accounts, including SoGOOD, to carry out his scams. This case highlights the importance of caution and background checks when transacting on P2P platforms.

Scheme #3

There are three parties involved in this deception scheme. Two scammers simultaneously communicate with one seller, using his trust and creating a situation of urgency to send cryptocurrency without proper verification. Sending assets without accurately identifying the source of payment poses a risk. There is a danger that the seller, being careless, may issue assets twice, resulting in receiving only part of the expected amount or being deceived altogether.

Scheme #4

Fraudsters pose as intermediaries in P2P transactions. The scammer pretends to be a seller or buyer of cryptocurrency on the Bybit platform, establishing contact with potential victims through external communication channels such as Telegram, WhatsApp or social networks. He offers his banking details and information about advertisements posted on Bybit in an attempt to deceive users.

In this scenario, the scammer shares his account details through external channels and asks the victim to confirm receipt by copying the information into the P2P order chat on the Bybit platform. The victim, unaware of the deception, sends the scammer’s account information to another platform participant, who is also not aware of the fraud. As a result, the victim sends cryptocurrency to an unsuspecting buyer, who then transfers fiat funds to the scammer’s account.

In such cases, it is difficult for the victim to get help from P2P platform specialists, since communication with the scammer took place outside the official platform.

Strategies for protecting and preventing fraud on P2P platforms

- Conducting transactions on peer-to-peer (P2P) exchange platforms requires increased attention to prevent possible fraudulent activities. Here are some effective strategies and tips to help you protect your operations.

Ensuring security for participants in P2P exchanges is critical and includes the following aspects:

• Enable two-factor authentication (2FA) : Be sure to enable 2FA for your account. This will add an extra layer of security and protect your account from unauthorized access.

• Use strong, unique passwords : Create and use strong passwords that are unique to each platform. Avoid reusing passwords to reduce the risk of a data breach.

• Website Authentication : Before logging into the platform, make sure that you are using the official website. Avoid clicking on suspicious links and check the URL to ensure it is genuine.

• Limit the use of external communication channels : Try to minimize the use of third-party communication services to conduct transactions. It is important to communicate and transact only through official communication channels on the platform to avoid the risk of fraud.

Mechanisms and approaches Bybit offers to ensure user security include:

1. Ratings and Reviews : Users can use ratings and reviews on the Bybit platform to assess the credibility of potential counterparties. This allows users to make informed decisions when choosing a partner for transactions.

2. Escrow Service : Bybit offers an escrow service that temporarily holds cryptocurrency during a transaction. This increases the level of security of transactions, providing protection for both the buyer and the seller.

3. Help Desk : In case of disputes or problems, users can seek help from Bybit Help Desk, which will help find solutions and resolve conflict situations.

4. Checking counterparties for P2P transactions : Users are advised to carefully check the profile, rating, transaction history and reviews of other participants about the counterparty. Be especially careful when interacting with new users or those with few transactions.

5. Requiring confirmation of data : Users should not hesitate to require the counterparty to confirm its data or provide additional information about the transaction if in doubt. This will help ensure the reliability of the transaction.

6. Handle demands with care : It is important not to give in to pressure from counterparties, especially if they require quick action. Users should take their time and analyze each step of the transaction in detail to avoid falling into fraudulent schemes.

Conclusions

In the world of cryptocurrencies and P2P exchanges on platforms such as Bybit, there is a certain risk of fraud. Users should be aware of this risk and take appropriate precautions. It is important to be extremely careful and actively use the security tools offered by the platform, such as two-factor authentication and complex passwords.

While platforms like Bybit are taking steps to ensure user safety, personal vigilance and caution remain key to protecting funds. You must be especially careful and not trust dubious offers or requests.