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What can go wrong with P2P payments and how does TRIO cyber security fix them?

Updated: Mar 15


A person transacting with another person can use escrow. But they may decide that paying a costly commission (20% to Airbnb) is too much, and they choose to cut corners and transact directly. This decision will probably lead to a 100% loss, as we all know.

There is another way for P2P trade. Can we built-in trust into the P2P payment itself? We will answer this question here.

Any Trade Service (Online or Offline) involves a Buyer (Payer) and a Seller (Payee).

TRIO P2P Payment Ecosystem on Public Ethereum Blockchain consists of:

  • TRIO unhosted, non-custodial Crypto Wallet,

  • A TRIO utility token,

  • TRIO Identity & Access Management (IAM)-as-a-Service,

  • and TRIO API.

1. You (the buyer) can send TRIO tokens to the wrong person by honest mistake.

You can ask this person to return the money, which may not happen, sometimes for an excellent reason – the recipient was advised so:

If someone sends you money out of the blue, it’s probably an honest mistake, right? Not necessarily. If you use Venmo or another digital wallet, such as Zelle or Apple Pay, watch out for this high-tech twist on a classic con.

How the Scam Works:

You get a message on Venmo. It reads something like: "Oops! Can you send that back?" You check your balance history, and someone you don't know just sent you several hundred dollars. It must have been a mistake! After all, it's easy to mistype a username. You might think you are doing the right thing by returning the money, but don't fall for it!

What's happening here? Scammers connect stolen credit cards to Venmo and use them to transfer money to unsuspecting users. If you send the money back to the scammer, they will delete the stolen credit card from their account and add their card in its place. Then, the money you are sending will go onto their card. Eventually, the stolen funds will be removed from your account, and you will be out of that money.

If an honest mistake is established by the TRIO IAM (Identity & Access Management), the recipient of the crypto-currency will be requested to return it. If he fails to comply – TRIO IAM will perform administrative corrections to return the funds.

2. You (the buyer) can send money to the wrong person, being tricked by fraudsters.

An authorized push payment (APP) scam, also known as a bank transfer scam, occurs when you knowingly or unwittingly transfer money from your bank account to one belonging to a scammer.

For example, a scammer pretends to be from your bank’s fraud team and warns that you need to move your money to a safe account, but it’s an account the fraudster controls.

If you've been tricked into transferring money to the account of someone you don't know, you might have been the victim of what's known as authorized push payment (APP) fraud.

If fraud is established by the TRIO IAM, the recipient of the TRIO tokens will be forced to return the money. If he fails to comply – TRIO IAM will perform administrative corrections to return the funds.

3. Cybercriminals can send money without your (Buyer) knowledge.

This can be done through advanced persistent threat (APT), phishing, malware, computer viruses, and Identity Theft.

TRIO wallet precludes cybercriminals from sending cryptocurrency without your knowledge. To validate it, sellers (payee) can use TRIO API and Public Blockchain History.

4. One can send money, colluding with criminals to defraud your Bank, claiming problem 3.

This ultimately relates to non-repudiation: non-repudiation involves associating actions or changes with a unique individual. In this case, non-repudiation will prevent someone from defrauding Bank.

TRIO wallet ensures non-repudiation. Sellers (payee) can use TRIO API and Blockchain History to validate it.

5. You (the buyer) can send money, but the Seller (payee) may claim he did not receive it.

The Seller (payee) account is not transparent to you, so you have no choice but to wait…

Public Blockchain provides a transparent transaction ledger. To verify Seller (payee) Identity, use TRIO API.

6. One (Buyer) can send money, collect the merchandise, and then ask for a refund, defrauding the Seller (payee).

Chargeback fraud, also known as friendly fraud, occurs when a consumer purchases online with their credit card and then requests a chargeback from the issuing bank after receiving the purchased goods or services. Once approved, the chargeback cancels the financial transaction, and the consumer gets a refund of the money they spent. Depending on the payment method, the merchant can be accountable when a chargeback occurs.

The Chargeback Fraud to be prevented since non-repudiation is ensured,

7. You (the buyer) can send money, but the Seller (payee) will not send the merchandise intentionally.

This is especially true if the Seller (payee) establishes his "business" only to collect money.

The seller (payee) cannot use fraudulent proceeds outside the TRIO ecosystem, and their account will be blacklisted. The fraudulent proceeds will be returned to the Buyers.

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