How to spot a scam

Thought I’d throw out a quick post on a pretty elaberate scam which actually has some degree of success.  I have to take my hat off to this one.

so there I was in rens, looking at the market seeing what stock I could buy up and still make a profit what with jita being camped and all when I see in local some contacts that look legit.  Contracts in local that seem legit should cause alarm bells to ring to everyone….

Study the next screen shot for a moment or 2.

Spotting the scam master in local

Hangar clear out.  ok…  250 mil?!?  what????  Nothing in there that has the value of 250 mil unitl….. hold on….. Compressed Dark Ocher…. hmmm

View market and….. ahhhh.   What we see here looks too good to be true.  Someone selling ore at well over the market value, nothing odd about that.  What is odd is the 400 million buy order which exceeds the sell.

“But that’s impossible!” Well no it’s not if you have the right trading skill.  Here’s how the scam works.

Note the times.  the 400 mil buy order is 4 hours old, the sell orders are 40 minutes old.  to make this scam work depends on how you set up the orders.

The perp has an alt with margim Trading at level 5 :

Ability to make potentially risky investments work in your favor. Each level of skill reduces the percentage of ISK placed in market escrow when entering buy orders. Starting with an escrow percentage of 100% at Level 0 (untrained skill), each skill level cumulatively reduces the percentage by 25%. For a maximum reduction of approximately 24% total escrow at level 5.

He has to have enough isk in the alts account to set up the order but with margin trading it only part of his capital goes into escrow.  So what he does next is remove all isk from the alt.  Quickly sell a few units to himself bring the escrow up to full He then sets up sell orders with the remaining units.
Initially he’ll get a message telling him that the person he’s selling to doesn’t have enough isk to complete the transaction leaving him to set up the sell orders to a much lower price than the buy.

The rest is to wait for the next dummy to come along, buy the sell, try to sell to the buy and find out that he can’t! perp has 300 mil, the mark has some really expensive dark ochre.

and what’s the contract for?  to discreetly advertise the scam


2 Comments on “How to spot a scam”

  1. you failed to track the real scam says:

    you are wrong. This scam works much simpler than that. HE sets the Buy orcer MINIMUM ammount to 4 and bets his money noone has 4 stock. So he sells 2 (not 4) at high price. Those who fail to see the MINIMUM volume onthe buy order (like you) will fall into the scam and buy his sell orders.

    • raath says:

      Actually you are wrong as well. Selling 2 items is not the real scam either. the minimum quantity is irrelevant. Someone buying the sell may be a bonus but the real scam is in the contract.

      I had initlally assumed that the contract was simply to advertise the scam, but in reality the contract IS the scam. what the scammer has done is to setup a market environment so that somone looking at the contract will rightclick->View market and see that there are items being bought for above the contract price. If they accept the contract then the scam is completed and items will be removed from market. Anyone purchasing the sell is a bonus..

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s