These forums have been archived and are now read-only.

The new forums are live and can be found at https://forums.eveonline.com/

EVE General Discussion

 
  • Topic is locked indefinitely.
123Next pageLast page
 

Lost 1.5 billion on Margin Trading Scam

Author
Veanna Lenn
Doomheim
#1 - 2013-08-14 12:09:10 UTC
So after having last played in 2007, I decided to come back to EvE two weeks ago. Back in 2007 I lived in nullsec so you can imagine I'm not very educated on the markets.

As I was trying to get my bearings, I saw a Tag contract for half a billion. The contract had two tags in it. Normally I laugh at contracts and realize that most of them are scams anyway, but this time I was bored and buzzed from alcohol so I just right clicked to check market details, for fun (why the heck not).

I saw that there were TONS of sell orders for 600 mil. MULTIPLE buy orders for ~500 mil. I was extremely confused. This contract had TWO tags for 500 mil! I spent several minutes, not even kidding, just COUNTING the number of digits in the buy order to make sure it was 500 mil and not something else. Being buzzed didn't help with the counting.

After determining it is indeed 500 mil, I then decided to check what the hell this item is, and why it is so expensive. I googled it and saw it is an officer tag. +1 for legit. I then logged in on my alt in a different empire region. That region ALSO had buy and sell orders for ~500 mil. +1 for legit. I was now convinced each tag did indeed cost 500 mil. Why? Well, I remembered reading patch notes and remembred something about tags for sec status, which is why I figured these items were so valuable.

I bought the contract. Try to sell it... BOOM, can't, minimum quantity is 6! I am undeterred. Flying around, I find two more contracts for 500 mil each having 2 more tags. I figure these are leftover from before the patch that made them jump in value. I buy them.

Try to fill the order with my 6 tags. it vanishes. I then google the tag's name, and then add "exploit" at the end, figuring it was some sort of an exploit. I am finally taken to a forum page where Margin Trading Scam is discussed. Alas, I wish I saw that page earlier.

Lesson: Don't drink and fly EvE
Seetesh
Deep Core Mining Inc.
Caldari State
#2 - 2013-08-14 12:15:34 UTC
Common scam always check the minimum buy amount.
Mr Kidd
Center for Advanced Studies
Gallente Federation
#3 - 2013-08-14 12:18:23 UTC
That it was in contracts was your first indication that it was a scam. You nailed it as such.

That it was in contracts and could be bought/sold on the market was the second indication that it was a scam. You missed that point completely.

That it was in contracts, could be bought/sold on the market and was "too good to be true" should have been the final indicator that it was a scam. You missed that point as well.

Don't drink and think. It's bad, mmmm'kay?

Don't ban me, bro!

Zappity
New Eden Tank Testing Services
#4 - 2013-08-14 12:19:24 UTC  |  Edited by: Zappity
Lesson: Don't drink and fly EvE

Correct, at least for the markets. My best effort is 2b down by adjusting a big stack of orders to 600 instead of 600k. Oh well, it's only isk...

Zappity's Adventures for a taste of lowsec and nullsec.

William Walker
Dark Venture Corporation
Kitchen Sinkhole
#5 - 2013-08-14 12:19:32 UTC
It's a scam if it's explicitly indicated in the market window? I guess we are in SCAM online.

ヽ(⌒∇⌒)ノ へ(゜∇、°)へ (◕‿◕✿)

Cebraio
State War Academy
Caldari State
#6 - 2013-08-14 12:25:20 UTC
If it's too good to be true, it's a scam. Lesson learned. Carry on.
Veanna Lenn
Doomheim
#7 - 2013-08-14 12:25:49 UTC
Mr Kidd wrote:
That it was in contracts was your first indication that it was a scam. You nailed it as such.

That it was in contracts and could be bought/sold on the market was the second indication that it was a scam. You missed that point completely.

That it was in contracts, could be bought/sold on the market and was "too good to be true" should have been the final indicator that it was a scam. You missed that point as well.

Don't drink and think. It's bad, mmmm'kay?


True. However, as I last played a while ago, the one thing I remembered about EvE and the very rudimentary 0.0 markets back then, is that if there was a buy order, and I had items, I could fill it no problem. Never had a problem filling a buy order.

So here, granted I failboated on the min order quantity, but after that I escalated my mistake by thinking "well, if I get 6 of them, I will be able to fill the buy order like ive done thousands of times before". When the order vanished upon trying to fill it, I realized my mistake. Illusionary, unfillable, buy orders.... I guess its a reminder that with EvE you can't ever start to feel comfortable, or it'l get you.
Mocam
Aliastra
Gallente Federation
#8 - 2013-08-14 12:34:00 UTC
Wrong forum. Crime & Punishment, Market Discussions... Ok but GD?

As for your post - yes this uses a poorly implemented game mechanic. Yes it's been discussed before repeatedly and I imagine CCP will "eventually" get around to addressing the problem.

IMO - treat margin trading like flying a T3 - if the order collapses due to insufficient funds, they lose a skill level and must retrain it.
Azurae
Doomheim
#9 - 2013-08-14 12:36:24 UTC
just check the market history of items and then you'll see if its a margin trading scam or not. you won't even have to check other regions that way ^^

btw there are sometimes cheap navy slicers for sale in contracts, just gotta be quick enough to get one. check jita for those
Mara Rinn
Cosmic Goo Convertor
#10 - 2013-08-14 12:52:58 UTC
Azurae wrote:
btw there are sometimes cheap navy slicers for sale in contracts, just gotta be quick enough to get one. check jita for those


It's funny how the first two sell so quickly, guess that is why the seller was in a hurry to post the third contract and mistyped the number of zeroes.
Azurae
Doomheim
#11 - 2013-08-14 12:59:11 UTC
Mara Rinn wrote:
Azurae wrote:
btw there are sometimes cheap navy slicers for sale in contracts, just gotta be quick enough to get one. check jita for those


It's funny how the first two sell so quickly, guess that is why the seller was in a hurry to post the third contract and mistyped the number of zeroes.

as i said he has to be fast. obviously the 1 mill slicers are gone within seconds (and no, not by alts... at least not my slicers; can't speak for the copycats though ^^)
embrel
BamBam Inc.
#12 - 2013-08-14 13:07:05 UTC
Mocam wrote:


IMO - treat margin trading like flying a T3 - if the order collapses due to insufficient funds, they lose a skill level and must retrain it.


NO!

I don't have the liquidity should all my buy orders be executed at the same time. And none of them is a scam.

the meaning of margin trading is exactly that you can do that. It's not done because of scams, but to ensure sufficient liquidity is in the market. Otherwise you'd have simply far less buy orders in the market, which hurts far more people than a scam. A scam hurts actually no one. It's just an expensive lesson for on side of this special kind of transaction.
Reckless Ourtomineng
#13 - 2013-08-14 13:35:25 UTC
Mocam wrote:
Wrong forum. Crime & Punishment, Market Discussions... Ok but GD?

As for your post - yes this uses a poorly implemented game mechanic. Yes it's been discussed before repeatedly and I imagine CCP will "eventually" get around to addressing the problem.

IMO - treat margin trading like flying a T3 - if the order collapses due to insufficient funds, they lose a skill level and must retrain it.


What's the Point of having GD, just remove it, if there is a proper place for every thread,
General discussion allows any discussion about eve.
Sometime I feel GD is only for who post something that doesn't put eve in a bad light, even if,
there is plenty of bad stuff going on to talk about, hiding it won't solve the problem,
there always been good and bad times, but is only when facing the bad things that we'll move on.
RubyPorto
RubysRhymes
#14 - 2013-08-14 13:58:04 UTC
Mocam wrote:
As for your post - yes this uses a poorly implemented game mechanic. Yes it's been discussed before repeatedly and I imagine CCP will "eventually" get around to addressing the problem.


What problem? If there's insufficient ISK to cover the transaction, you are left in the exact same position you were in before you tried to sell your items.

The scam is over when you buy the overpriced good. You can avoid doing this by pressing one button. If you can't be bothered to figure out the real value of the items you choose to invest in, how can you be surprised when you lose money?

Quote:
IMO - treat margin trading like flying a T3 - if the order collapses due to insufficient funds, they lose a skill level and must retrain it.


Why should someone be punished for not being able to perfectly predict their future liquidity?

"It's easy to speak for the silent majority. They rarely object to what you put into their mouths." -Abrazzar "the risk of having your day ruined by other people is the cornerstone with which EVE was built" -CCP Solomon

Whitehound
#15 - 2013-08-14 14:07:42 UTC
Awesome story. Tell us another one!!

Loss is meaningful. Therefore is the loss of meaning likewise meaningful. It is the source of all trolling.

Andrea Griffin
#16 - 2013-08-14 14:16:24 UTC
Mocam wrote:
IMO - treat margin trading like flying a T3 - if the order collapses due to insufficient funds, they lose a skill level and must retrain it.
I'd rather have all buy orders that cannot be covered by the current wallet amount be removed from the market automatically. Using Margin Trading to scam is a clever use of the mechanic, but I don't know if it really adds much gameplay to Eve other than screwing new people who don't know about it.
Doc Fury
Furious Enterprises
#17 - 2013-08-14 14:20:57 UTC
Another victim of the EVE market IQ test.

+1 for not calling it an exploit.









There's a million angry citizens looking down their tubes..at me.

embrel
BamBam Inc.
#18 - 2013-08-14 14:59:17 UTC
Andrea Griffin wrote:
I'd rather have all buy orders that cannot be covered by the current wallet amount be removed from the market automatically.



and which one would that be?

e.g. 10 open buy orders at 100M each, available liquidity 800M.

Now, which order would you like to see cancelled?

In the above example you can assume that usually the 800M will be sufficient for these open orders. You just drain the market of liquidity cancelling uncovered orders. And why? In order to protect people from their own greed?
Manhim
Garoun Investment Bank
Gallente Federation
#19 - 2013-08-14 15:18:28 UTC  |  Edited by: Manhim
While I agree that it's currently a part of Eve's mechanics, I think that something should be done to at least deter these kind of scams, like adding a "Warning, this price is 9001% over average market prices", kinda like when you are buying or selling an item on the market.

It wouldn't prevent these scams completely, but at least it would be something, plus it already exists.

Another thing would be to add an option to hide buy orders who have an higher minimum amount then 1, can be useful when selling a single item to buy orders.

And probably useful: If the buyer doesn't have the money to complete this buy order right now it should be shown in red and be filterable or it should be able to put your wallet into the negatives as you'd have a debt towards the broker, cause I think that not being able to pay for what you owe should be on the shoulders of the seller and not the buyer.

Moar filters.
embrel
BamBam Inc.
#20 - 2013-08-14 15:25:10 UTC
Manhim wrote:
or it should be able to put your wallet into the negatives as you'd have a debt towards the broker, cause I think that not being able to pay for what you owe should be on the shoulders of the seller and not the buyer.


as it was pointed out before, this would be an infinite ISK-generation machine. Creat alt, place uncovered buy order, sell to alt, biomass indebted alt...
123Next pageLast page