Deriv P2P Con Game: How Mululu33 Scammed Me on Deriv

Deriv is one of the leading binary options trading platforms in the world. It has been in operation for at least 2 decades, and only now getting popular in Kenya.

While it is one of the most accessible Fixed Time Trading platforms to make money trading online, it is also a haven for money transfer cons, especially on the Deriv P2P platforms.

Here’s how I got coned two folds making withdrawals and deposits via the Deriv P2P payment method.

How did I get scammed on Deriv you ask?

Well, it all started with the urge to start making money on the Deriv platform like I had seen countless millennials do with the Deriv bot and post on TikTok.

I created my trading account and got verified in only 5 minutes. If you want to create a real account on the Deriv platform, here’s a step-by-step guide on how to do it.

Since I am a seasoned trader in Binary Options, I immediately funded my Deriv account to start making real money trading on the platform.

Now, for this one time, it was easy.

I just switched on the real account from the demo and clicked on the deposit button on top of the trading platform.

Deriv then redirected me to the cashier page as shown in the image below.

Since I don’t like clicking on just about any link on the internet, especially the ones on peer-to-peer payment platforms, I chose to forgo the payment agents’ deposit method for the Deriv P2P platform.

Now, I must admit that this is an innovative product on Deriv and it is also a faster way to fund your account if you land in the hands of honest traders.

And it is also how I got conned on the Deriv platform by the way, so from this point on, if you don’t want to get scammed like I did, read on.

How Deriv P2P payment method works.

Ideally, you are supposed to choose the Deriv P2P tab after clicking on the deposit button and a list of all the advertisers who want to either sell or buy USD will pop on the screen.

You will then look at each offer to see the minimum USD, maximum USD, and USD rate on offer by each individual advertiser.

If a seller meets or falls within the range of the USD you want to buy or sell, then you will tap on the BUY USD or SELL USD on their ad to initiate the transaction.

See the image below for a visual explanation of how the platform works.

Did you understand how the whole ecosystem works?

Deriv in their wisdom realized that traders from different regions of the world, especially Africa were having difficulty processing payments on the platform.

So they thought, why not come up with a method that helps traders make more money on deposits and withdrawals while also solving the payments delay/failure problems on the platforms? And so the Deriv P2P payment method was born. At least that’s my hypothesis.

And to be honest, I have made deposits on Deriv via this method one too many times and succeded.

Until earlier this morning when after making a deposit of $13 and trading all the way to $50 (profits), I decided to test the withdrawal methods.

Withdrawing money via the Deriv P2P payment method.

To withdraw money for Deriv via the P2P method, click on the cashier menu at the top of the platform and navigate to Deriv P2P.

Next, click on the sell button and choose an ad with the dollar range that you want to sell.

For example, I decided to sell to the first ad on the list because I thought it would have the best exchange rate. Isn’t that how P2P platforms filter ads to show?

Now, the mistake that I made was not reading the instructions shown by this buyer.

Below is what the instructions read, “Automated Payment bot in use. Place an order, RELEASE, and CONFIRM from your Email for instant PAYMENTS via the Payment details that my Bot will pick. WhatsApp call +254755617698 for more information and inquiries.”

And even if I had read and followed the instructions, isn’t Deriv synonymous with the word “bot”?

I confirmed that I wanted to sell $30 to the owner of this ad and immediately, he marked the ad as paid.

Note: – buyers on the platform are only supposed to mark transactions as completed when they have already sent the money to your Mpesa account.

In my case, “Muuluu33” the advertiser marked payment as done without sending the $30 equivalent to my Mpesa. This was the first red flag and the beginning of the con and I ignored it.

Next, he called me to explain why he had marked this payment as done despite not sending me KES. 4080 as agreed as per his $1 to KES. 136 conversion rate.

His request?

That I release $30 so that his bot can pick up the transaction and process my payment.

Now, being someone who has previously founded a money exchange startup (PesaPekee) and knows that sometimes AI can be used to process transactions, I decided to take him up on his word.

After all, we are in 2023 and bots help us do almost everything, why not payments?

My Mistake

My mistake? I released $30 to Mululu33 in anticipation that his bot will pick up the details of the transaction, convert the KES equivalent of my $30 and send me my money.

And everything would have been alright if he met his part of the bargain but, he did not.

So, I patiently called him to remind him that I had already released this $30 as he had requested.

Gently, he assured me that I would receive my funds shortly then hung up.

Two hours later, I called back to confirm how much longer I had to wait and he said 30 minutes.

By this time, I was sure my $30 was gone. I would have stopped here and called it quit, except, I still wanted to see the second phase of this con and how it would play out in the end.

Why did I do next you ask?

I called Mululu again and here’s what he had to say.

My bot is not able to send Mpesa so let me refund you the $30.

A refund, from a conman? That sounds nice, right? Except, it is not a refund. He wants more money.

In our WhatsApp call conversation, Mululu disclosed that he has $32 under the name Kaloki.

His proposal?

He sends me an ad, and I go back to Deriv and buy $30 from Kaloki. He’d then release $30 to cover what I sent 4 hours ago.

Sounds like a perfect plan, right? Except it is not.

Just when I’m about to buy $30 from his new account, I receive another WhatsApp call from him requesting that I buy $32 instead and only pay for $2.

By his calculations, this is KES. 260 which I should pay to a different Mpesa number under the name Victor Ochieng.

Long story short, I sent him another KES. 260. He then contacted me on the Deriv chat and asked for my proof of payment.

Conclusion

Should I send him my proof of paying KES. 260 to Victor Ochieng? Who is Victor Ochieng by the way? Is he Mululu, Muuluu, or Kevin Muema?

Hypothetically speaking, let’s say I decide to open a complaint on Derive.

How do I convince Deriv that I paid KES. 260 to Victor on a claim of $32 to be released by Kevin Muema for $30 whose payment I blindly agreed to receive despite it not hitting my account?

Victor, Kevin, Muuluu, Mululu, or whoever you are, I have a feeling that you have coned many people with this method and I hope your kids choke when they eat the proceeds of Deriv P2P conning.

While Deriv’s intention was to make transactions seamless on the platform, you have made their innovation a cheap thrill for conning.

To all traders thinking of making deposits or withdrawals via the Deriv P2P payment method, use the D M-Pesa app instead, you won’t regret it.