There are more than 120 million crypto traders and investors who buy, sell, stock and trade cryptocurrencies to earn the rewards. Many platforms offer different methods of trading, and P2P or peer-to-peer trading is among the most common trading methods. Almost every Crypto trading platform includes this method, and it is the quickest way of getting Cryptos. Still, with its usage and popularity, it has also attracted many scammers who use P2P for their illegal activities.
If you are looking for a Crypto trading platform, you should choose KuCoin because it provides the best security features and offers to trade in 600 popular and emerging coins. You can get TRX price, DOGECoin price, and more on this platform. It also provides its users with the latest Cryptocurrency news and updates you can use to your advantage. In this article, we will discuss a check scam in P2P trading and how you can avoid it. So let’s get started.
What Is Cheque Scam?
Cheque scams are among the most common scams that you can face in P2P trading and dealing. There are many methods to transfer funds in KuCoin, but a cheque transfer is not on the list because it is highly unreliable, and there are a lot of things that can go wrong. A cheque scam is not a hack. Therefore there is no proper feature to stop this issue from a technical point of view. The scam works by manipulating the user, not the account, and you must know how to avoid it.
In this scam, the scammers insist on purchasing Cryptos with cheque payments. Still, after you send them Cryptos, they immediately cancel the cheque invoice, or the cheques will bounce, causing you to lose your assets without anything in return.
Types Of Cheque Scam
A check scam can work in one of the following two ways. The mechanism is the same, but you cannot tell the difference.
- The scammers can use the time delay in the cheque to fool their victims into thinking they have made the payment. As soon as they release a check and generate a receipt, they immediately cancel it and send the receipt to you, asking for Cryptos. You will not notice that the check is canceled because it might take time.
- The scammers can also create bounced cheques to fraud their victims. The cheque can be declared cleared, so the victim releases the Cryptos to the scammer’s account, but when the victim tries to transfer them, it will be too late before they realize that these cheques are bounced.
How To Avoid Cheque Scam
It would help if you didn’t deal with anyone who insists on paying by cheque. Instead, you should report them to the customer care services of KuCoin. These are the ways to avoid cheque scams.
- Immediately refuse the customers willing to pay by cheque and stand on your ground no matter how convincing they may sound. These scammers will try everything to make you believe they are authentic but do not fall into any trap.
- If the customers send you the amount with a cheque without informing you, you should confirm it. Please do not trust the receipt they send but check your bank account to confirm the payment and the source they paid. If you find that they have made the payment with cheque deposit or CDM, refuse to report to customer services. You can easily check the method of payment by visiting your account.
A cheque scam is not a hack where the fraud interferes with machines or software, but it is a technique where they let you think that they have made the payment. KuCoin offers its users extensive payment methods, and the cheque is not included. Fraudsters may use the time delay in the cheque to trick their victims into thinking they have made the payment, and they can even produce rejected cheques to defraud their victims. To avoid these frauds, immediately deny clients who want to pay by cheque, but if they give you the money with a cheque without alerting you, do not release the Cryptos and report them to the KuCoin customer service center.