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