A shocking phenomenon has emerged where cybercriminals are manipulating unsuspecting traders in Peer-to-Peer (P2P) transactions, siphoning off stolen funds through a complex web of deceit. This insidious scheme has far-reaching consequences, ensnaring traders in a tangled mess of legal woes and investigations.
In reality, it works like this: scammers pretend to be real prospective buyers who want to transact from trading platforms in order to buy cryptocurrency. They will transfer into the account of the trader money that has mostly been linked with online fraud victims from raider scams like loan application scams, OTP fraud, or courier fraud.
Take the situation of Mohammad Ismail, a crypto trader located in Bengaluru. A month ago, Ismail received a summons from Gujarat police, holding him as an accomplice in an online scam. The surprise was the money from a complainant was tracked to his firm’s account.
“The police thought I was complicit,” Ismail explained. “But I am a legitimate trader who pays taxes on every transaction.” The confusion stemmed from a P2P deal where an individual purchased 4,000 Tether coins (₹84.84 each), transferring what later turned out to be stolen money into his account.
Let’s break it down to understand better. For example, you are selling a vehicle to someone you do not know. Payment for the car was made using illicitly acquired cash, only for the police to trace the money to you later. You are innocent, but the journey towards proving that is not easy.
Fraudsters favor cryptocurrency because it is harder to trace once converted. They often move funds to crypto-friendly countries like Dubai, where regulations are less stringent.
Experts cautioned that very strict checks must be conducted by traders on buyers to avoid their scamming. One of the senior cybercrime officials even mentioned that “P2P transactions lack safeguards, making them vulnerable. Vigilance is key.”
With the recent popularity that cryptocurrencies have gained, it serves as a sudden reminder to traders that not everybody who interacts with you in the virtual world can be trusted. Yes, it is fast, safe, and global, but one needs to be cautious.
