Identifying Peer-to-Peer Settlement Risks and Fraudulent Third-Party Bank Transfers
Peer-to-peer digital asset trades carry severe risks when counterparties settle payments using compromised or third-party bank accounts. Victims often face frozen bank accounts or complicity accusations alongside the loss of transferred assets.
- Always ensure that the bank account name sending or receiving fiat funds matches the verified legal identity of your counterparty precisely, rejecting any payments originated by unverified third parties or corporate entities.
- Criminals frequently route stolen fiat from unrelated fraud victims into peer-to-peer trades, leaving sellers vulnerable to bank account freezes, formal fraud investigations, and subsequent reversals once the genuine account holder reports the unauthorised transfer.
- If your UK bank flags or freezes incoming funds from a peer-to-peer transaction, contact their fraud department immediately with complete transaction records, counterparty communications, and relevant onchain transaction hashes.
- Report suspected intermediary fraud or fraudulent payment claims directly to Action Fraud and the respective exchange compliance desk, preventing the counterparty from exploiting other market participants through the same compromised account.
Written by the Wallsec investigations team. General information only, not legal or financial advice.
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