What is a Man In the Middle (MIM) cash deposit scam?

Man in the middle scams are one of the most common when processing payments for parties you are not meeting in person. This is how a Man In the Middle scam works with cash deposits.

Step #1- The scammer finds an innocent party (the man in the middle) who wants to buy something. This can be anything from a car on Craigslist to bitcoins online. He often makes the price so low that the victim is in a rush to complete the deal and is not thinking clearly

Step #2- The scammer finds someone selling bitcoin online and gets the seller’s bank account information.

Step #3- The scammer takes the bitcoin seller’s information and gives it to the buyer stating that is his account.

Step #4- The buyer places money into an account thinking his payment is made

Step #5- The bitcoin seller confirms the money is in his account and releases bitcoin to the scammer.

Step #6- The scammer disappears

Step #7- The buyer/Man In the Middle never receives his merchandise/BTC. He contacts the police and files a report with the bank or payment company.

Step #8- The bank reverses the transaction and the seller loses the money and his bitcoin. The bank often will also close the account of the bitcoin seller.

Step #9- The police investigate and may press charges depending on local laws and the documentation the seller is able to provide.

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