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Why is CCP encouraging/facilitating margin trading scam?

Author
Megalex QC
Sebiestor Tribe
Minmatar Republic
#1 - 2014-03-18 19:13:44 UTC  |  Edited by: Megalex QC
Sup EVE

I haven't been playing for a long time, but I've recently been made aware of a scam called the margin trading scam.

http://wiki.eveuniversity.org/Scams_in_Eve#The_Margin_Trading_Scam

There's a skill in EVE that allows you to place a buy order without having the ISK to do so, and when someone sells to that buy order, it fails. it's called "Margin Trading"

So the scammer puts up an exotic item in a contract sale, which isn't sold in that system, but with a bunch of fake buy orders for like 2-3 times the price of the contract! In this case, the item he was selling are the "compressed" ores like "Compressed Spodumain"

So you're like yeah, I'll buy it for 500 million. You buy it, try to sell that item to the 1 bil buy order and it fails.

Why is CCP allowing this mechanic to remain in game? Why would you be able to buy stuff with the money you don't have? This is just broken and facilitates this horrible scam

There's a scammer in Rens who spams [Mining Sale] with that scam, if you look at his completed contracts you'll see he scams at least 1 person a day with this margin trading scam.

Why is this still ingame? Why does CCP facilitate scamming? I know they let scamming go because it's part of the game, but to FACILITATE it? that's another story.
Douglas Nolm
Tribal Liberation Force
Minmatar Republic
#2 - 2014-03-18 19:17:56 UTC  |  Edited by: Douglas Nolm
That's EvE. Like many things, I suspect that the mechanic was introduced with good intentions, and players worked out how to use it to scam others. It's all part of the game, and I don't think it needs to be changed. Remember, if something seems too good to be true, it probably is!
Daniel Plain
Doomheim
#3 - 2014-03-18 19:27:15 UTC
Megalex QC wrote:
So you're like yeah, I'll buy it for 500 million. You buy it, try to sell that item to the 1 bil buy order and it fails.

you fall victim to your ignorance and greed. i see no problem here.

Quote:
Why is CCP allowing this mechanic to remain in game? Why would you be able to buy stuff with the money you don't have? This is just broken and facilitates this horrible scam

you are not able to buy stuff with money you do not have, precisely because the trade fails. as for the scam: pretty much all other forms of scams are preying on greed and ignorance, this one is no exception.

Quote:
Why is this still ingame? Why does CCP facilitate scamming? I know they let scamming go because it's part of the game, but to FACILITATE it? that's another story.

where do you draw the line between allowing and facilitating? there are thousands of players who rely on the margin trading skill to increase their reach on the markets (including yours, truly), so what grounds do you have for your accusation?

I should buy an Ishtar.

Markatta
Republic Military School
Minmatar Republic
#4 - 2014-03-18 19:27:16 UTC
"You can't cheat an honest man."
J'Poll
School of Applied Knowledge
Caldari State
#5 - 2014-03-18 19:42:29 UTC  |  Edited by: J'Poll
aaah, the tears....tasteful.


It's possible, because it's part of the harsh universe of EVE, don't like it...then don't play the game.
And to people with common sense...it's quite an obvious scam too. It's the ignorant/stupid/greedy who fail to see the scam, and they deserve to fall for it.


I know that whining posts are part of the game, but why does CCP facilitate it?P

Personal channel: Crazy Dutch Guy

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Gizznitt Malikite
Agony Unleashed
Agony Empire
#6 - 2014-03-18 19:43:41 UTC

The Margin Trade skill has a ton of valid uses. It allows a trader to fully leverage the isk they have, and is an essential tool to any serious market traders.

The Margin Trading Scam: The only way the scammer makes any isk at all from a Margin Trade Scam is if they trick a person to purchase overpriced goods directly from them. Any player that actually investigates teh value of the product they are buying won't fall for margin trade scams:

--- Price history gives a solid indication of how much an item has been selling for.
--- Sales Volume History gives a solid indication of how rapidly an item moves.

Both of these tell you the volatility of an item, which moreless represents the risk associated with buying an item to resell for profit. A trader willingly assumes this risk when they purchase an item (whether they realize it or not). There are many real life examples of this, and businesses deal with it all the time. Examples: Fast food orders where the customer learns they don't have their wallet. Prank Pizza deliveries. Preorders for PS4's or Movies or Games at a Bestbuy, and on and on. EvE is a dystopia, and it is very appropriate for buy orders to occasionally fail.

When an order fails, the seller keeps their item and loses nothing. The buyer's order is canceled, and they lose broker fees. This is completely fair, where both sides walk away with their assets.

IMO, the margin trade skill is very well implemented, both for legitimate uses and for scamming. There is only one failing I perceive around it: CCP needs to make this point CRYSTAL CLEAR:

Quote:
ALL buy orders are NOT GUARANTEED.


It is that simple.... Put it right on the market interface.... perhaps add it to a tutorial, and then everything would be perfect.
Jonah Gravenstein
Machiavellian Space Bastards
#7 - 2014-03-18 21:54:44 UTC  |  Edited by: Jonah Gravenstein
If it sounds too good to be true, it is. If it seems like an honest deal, you haven't found the scam yet.

Double check everything when dealing with exotic or expensive items and or contracts. Paranoia is a survival trait in Eve, there are only two people you can trust, yourself and Chribba.

In the beginning there was nothing, which exploded.

New Player FAQ

Feyd's Survival Pack

J'Poll
School of Applied Knowledge
Caldari State
#8 - 2014-03-18 21:54:47 UTC  |  Edited by: J'Poll
Also.

Compressed Spodumain...exotic item...when is compressed spod an exotic item.


Buying stuff with money you dont have:
Also, uhm. Isnt that how much of RL works too. Or did you actually bought your house with your own money.

Personal channel: Crazy Dutch Guy

Help channel: Help chat - Reloaded

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Ralph King-Griffin
New Eden Tech Support
#9 - 2014-03-18 23:54:11 UTC  |  Edited by: Ralph King-Griffin
Jonah Gravenstein wrote:
If it sounds too good to be true, it is. If it seems like an honest deal, you haven't found the scam yet.

Double check everything when dealing with exotic or expensive items and or contracts. Paranoia is a survival trait in Eve, there are only two people you can trust, yourself and Chribba.

actually , just chribba.
Sabriz Adoudel
Move along there is nothing here
#10 - 2014-03-19 00:07:49 UTC
Jonah Gravenstein wrote:
If it sounds too good to be true, it is. If it seems like an honest deal, you haven't found the scam yet.

Double check everything when dealing with exotic or expensive items and or contracts. Paranoia is a survival trait in Eve, there are only two people you can trust, yourself and Chribba.



My rule is "Never trust anyone in EVE unless you are sleeping with them IRL."

Even then you need to be careful.



The best thing about the margin scam is that, like other scams that prey on greed (my "help I got ganked in a storyline mission, need Elite Drone AI to finish it, paying 400m" scam where the contract is a want to sell not a want to buy is another one), you can only steal from people who have enough ISK that they can afford to lose it.

So you never need to feel bad about utterly breaking someone in-game because you just can't do it, you can only get their liquid investable ISK.

I support the New Order and CODE. alliance. www.minerbumping.com

Spine Bastanold
Brutor Tribe
Minmatar Republic
#11 - 2014-03-19 01:18:10 UTC
Seems to me its just another layer in a very deep game. just another thing to learn, looks like you've figured it out without losing tons of ISK

I like the fact that theres challenges and danger everywhere, docked or undocked, be careful, this universe bites
cpt Varox
Brutor Tribe
Minmatar Republic
#12 - 2014-03-19 11:28:59 UTC
Its your fault/ You were greedy OP and now you know better. Greed is a capsuleer worst enemy right next to ego.
Let us reflect on that while we bring offerings to Bob (pro tip he likes corpses).
Jonah Gravenstein
Machiavellian Space Bastards
#13 - 2014-03-19 17:00:47 UTC
Ralph King-Griffin wrote:
Jonah Gravenstein wrote:
If it sounds too good to be true, it is. If it seems like an honest deal, you haven't found the scam yet.

Double check everything when dealing with exotic or expensive items and or contracts. Paranoia is a survival trait in Eve, there are only two people you can trust, yourself and Chribba.

actually , just chribba.
Good point, I certainly don't trust my alts and they're also me What?

In the beginning there was nothing, which exploded.

New Player FAQ

Feyd's Survival Pack

Noxisia Arkana
Deadspace Knights
#14 - 2014-03-19 20:35:25 UTC
They aren't encouraging it. They've actively been seeking a way to avoid this exploit with input from the player base without wrecking legitimate trader tactics.

It's in the F&I forum.
Sabriz Adoudel
Move along there is nothing here
#15 - 2014-03-19 22:25:57 UTC
Noxisia Arkana wrote:
They aren't encouraging it. They've actively been seeking a way to avoid this exploit with input from the player base without wrecking legitimate trader tactics.

It's in the F&I forum.



Please do not misuse the term 'exploit' like that.

New players: It is not in ANY way an exploit to use margin trading to scam someone, however, the ability to do so may be removed in the future. Be aware that people involved in margin scamming now do not appreciate additional competition, and have methods that can badly screw you if you attempt to margin scam but make a mistake.

I support the New Order and CODE. alliance. www.minerbumping.com

J'Poll
School of Applied Knowledge
Caldari State
#16 - 2014-03-20 01:33:20 UTC
Noxisia Arkana wrote:
They aren't encouraging it. They've actively been seeking a way to avoid this intended behaviour of a game mechanic with input from the player base without wrecking legitimate trader tactics.

It's in the F&I forum.


Fixed it for you.

It's NOT an exploit.

People are just using a loophole in something that works as intended.

Personal channel: Crazy Dutch Guy

Help channel: Help chat - Reloaded

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RomeStar
Caldari Provisions
Caldari State
#17 - 2014-03-20 12:54:28 UTC
Please contact a goon officer they help you out with options to decipher all margin trading scams along with some of the more coomon scams through out eve itself. They are a big help when it comes to scamming.

Signatured removed, CCP Phantom

Vol Arm'OOO
Central Co-Prosperity Union
#18 - 2014-03-20 17:17:13 UTC  |  Edited by: Vol Arm'OOO
The margin scam is the one scam that I feel I can really wholeheartedly support. The person who falls for it, does so because of their greed; they feel that they are taking advantage of another persons stupidity or mistake, when in truth it is their own greed and lack of knowledge that puts them on the hook. The margin scam is merely karma coming home to get you.

I don't play, I just fourm warrior.

Sabriz Adoudel
Move along there is nothing here
#19 - 2014-03-20 22:11:12 UTC
Vol Arm'OOO wrote:
The margin scam is the one scam that I feel I can really wholeheartedly support. The person who falls for it, does so because of their greed; they feel that they are taking advantage of another persons stupidity or mistake, when in truth it is their own greed and lack of knowledge that puts them on the hook. The margin scam is merely karma coming home to get you.


There's also the similar "HALP I got ganked, lost this storyline mission item" followed by a want to sell contract for a rubbish item like an Elite Drone AI or a Gate Key, retyped to appear as a want to buy.

I like that one. A lot. Newbies can do it quite effectively too.

I support the New Order and CODE. alliance. www.minerbumping.com

J'Poll
School of Applied Knowledge
Caldari State
#20 - 2014-03-20 22:18:26 UTC
Sabriz Adoudel wrote:
Vol Arm'OOO wrote:
The margin scam is the one scam that I feel I can really wholeheartedly support. The person who falls for it, does so because of their greed; they feel that they are taking advantage of another persons stupidity or mistake, when in truth it is their own greed and lack of knowledge that puts them on the hook. The margin scam is merely karma coming home to get you.


There's also the similar "HALP I got ganked, lost this storyline mission item" followed by a want to sell contract for a rubbish item like an Elite Drone AI or a Gate Key, retyped to appear as a want to buy.

I like that one. A lot. Newbies can do it quite effectively too.


Difference is that that scam more preys on people not paying attention / not knowing the mechanics.

Margin trader scam purely preys on people with more ISK then brainmatter.

Personal channel: Crazy Dutch Guy

Help channel: Help chat - Reloaded

Public roams channels: RvB Ganked / Redemption Road / Spectre Fleet / Bombers bar / The Content Club

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