The increasing reports of e-transfer scama on Localbitcoins.com is heightening the fear of bitcoiners using the platform in recent time. The past few weeks have been disastrous to users of the platform especially in Canada and some other parts of the world.
Some bitcoiners, according to pseudonymous cryptocurrency analyst Fiach_Dubh, are complaining about the issue, claiming they fell victim of the fraud. The Canadian bitcoiners claimed some sellers on localbitcoins.com now engage in e-transfer fraud/claw-backs.
How it Happens
According to Fiach_Dubh, scammers on the platform allegedly placed high amount on the digital currencies they intend buying to entice unsuspecting sellers. After doing so, they send the fund while the sellers also send Bitcoin.
After cryptocurrency is remitted, the receiver send the fund via e-transfer using email/bank account that does not correlate with the one he used on his localbitcoins.com account.
After receiving the fund, the seller may not notice that the fund was sent through a different user.
Afterward, the buyer may request from his bank that he was hacked by an unknown person during the course of which his fund was transferred to an unknown account. This gives the bank the power to charge back the fund from the seller’s bank account.
According to the update, sellers without sufficient fund in there bank account are tagged with negative overdraft territory (as seen in this case).
Here are two recent, and another related reports on this scam, shared by the pseudonymous cryptocurrency analyst.
At times, account used by scammers, both on localbitcoin.com and the bank accounts are been hijacked.
