Third party scams are particularly common on various online cryptocurrency marketplaces, which is the reason why we at Xanpool need our buyers and sellers to do certain things that might not make sense to you at first. But will, once you’ve learned how these 3rd party scams work.
It all starts with a scammer, who might be in a completely different location from his victims. And this scammer creates a false advertisements on a local online marketplaces (like amazon or craigslist) and says that he is selling a Mac Laptop for 500 dollars.
Obviously, the scammer is not going to sell anyone this product for that price, he is just trying to to lure potential victims to his scam.
When a victim (Let’s call him Victim A) takes the bait, and contacts the scammer that he wants to buy the laptop. The scammer will go to an online cryptocurrency marketplaces and approach a Bitcoin seller (Let’s call him victim B), saying that he, the scammer wants to buy 500 us dollars worth of Bitcoins.
Now, once victim B gives the scammer his or her bank details, the scammer will send the details over to his victim A and convince victim a to send over 500 dollars for the laptop.
The victim will then send over 500 dollars to victim B thinking it’s payment for the laptop.
Victim B will now see the 500 dollars in this bank account, and will send the scammer the Bitcoins. The scammer then runs away with the Bitcoins. Leaving quite a mess in his wake.
After a wile of not receiving his Laptop, victim A will realized that he is duped and was never going to get the laptop.
Victim A will then file a police report reporting Victim B’s bank account
Victim B will then find his bank account frozen and the police knocking on his door. And will be stuck for the next few weeks clearing his name and trying to get his accounts unfrozen.
So in the end, this 3rd party scam resulted in the scammer walking away with 500 dollars of Bitcoins, Victim A down 500 Dollars, and Victim B having to waste weeks unfreezing his bank account.
So how do we at Xanpool make it difficult for these scammers to operate?
You will realize that when trying to buy and sell on Xanpool, we force you to send us an unedited and unfiltered picture of your cash transfer receipt, on which we tell you to write a unique string of text “Buying Bitcoins From Xanpool - 93821” that will on one hand help us identify the cash coming from you. And on the other hand, will raise some red flags and the suspicion level to his victims if there is a scammer involved.
In the end of the day it’s hard to eradicate scammers, and those who fall prey to scammers. The goal that Xanpool is after is to make it so difficult to conduct these 3rd party scams on Xanpool that scammers simply don’t try.