Identifying Peer-to-Peer Cryptocurrency Trading Fraud and Unauthorised Payment Triangulation Schemes
Peer-to-peer cryptocurrency trades carry substantial fraud risks, particularly when counterparties use compromised bank accounts or request settlement outside platform escrow. Verifying payer identities and refusing off-platform arrangements protects participants from irreversible asset loss.
- Ensure that the registered name on the counterparty bank account matches their verified trading profile precisely before authorising the release of any cryptocurrency from platform escrow.
- Decline all requests to move communications or financial settlements away from the host platform, as external agreements bypass built-in dispute mechanisms and compromise audit trails.
- Notify your bank immediately if an incoming payment is flagged or recalled, as fraudsters frequently use compromised third-party accounts to purchase assets from unsuspecting sellers.
- File a detailed report with Action Fraud and provide all counterparty communications and account details to assist investigators in mapping the movement of illicit proceeds.
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Written by the Wallsec investigations team. General information only, not legal or financial advice.
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