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Margin Trading Scam - A Guide

Author
Dsan
Bedlam.
#81 - 2012-02-15 10:03:40 UTC
Can this be done from corp wallet ?

Also, replying to "bookmark" thread :D

Or follow me on twitter: http://twitter.com/Dsan_dk

Arloeswr
Federal Navy Academy
Gallente Federation
#82 - 2012-03-07 22:35:46 UTC
OK,

So if I understand this correctly. They (CCP) just need to put in a check to see if they have the full amount of money in their wallet. If so great, if not then when the person tries to sell this, they go into a negative isk balance. This is what happens with real margin trading.
David Forge
GameOn Inc.
#83 - 2012-03-07 23:41:47 UTC
I think that allowing for a negative balance to be created when there are insufficient funds would be a very good mechanic. I am not all that concerned about protecting people from being scammed but I do think that it would provide a level of riskiness that margin trading currently lacks. It would add something to the game if a trader had to weigh the benefits of leveraging himself for greater profit while being at risk of over-leveraging himself and being susceptible to incurring large debts due to overly risky behavior.
Ajita al Tchar
Doomheim
#84 - 2012-03-08 00:02:12 UTC
Arloeswr wrote:
OK,

So if I understand this correctly. They (CCP) just need to put in a check to see if they have the full amount of money in their wallet. If so great, if not then when the person tries to sell this, they go into a negative isk balance. This is what happens with real margin trading.


Assuming the negative balance after margin trading fail mechanic, what about something like this: a trader puts in a buy order for, say, 500mil and doesn't have enough money to cover it after paying the 25%. Someone sells to this order, walks away with 500mil, the trader has a very negative balance, and the trader character gets biomassed to be replaced with another one. Free 500mil!

That sounds like it would be possible unless some other restrictions are introduced...
David Forge
GameOn Inc.
#85 - 2012-03-08 00:35:32 UTC
How I overlooked that possibility is beyond me. Shocked
Strategos
Echelon Research
Goonswarm Federation
#86 - 2012-03-08 03:00:13 UTC
Sounds less like a "scam" and more like a complete abuse of game mechanics.
Skye Aurorae
Viziam
Amarr Empire
#87 - 2012-03-08 03:43:24 UTC  |  Edited by: Skye Aurorae
This is the kind of game mechanic abuse I would push CCP to fix, I don't think the existing CSM is that anxious to push for a fix since they're largely dominated by nullsec alliance members. I have no problems with scamming, but margin trading scams are abusing flaws in game mechanics, the intent of the margin trading skill was to allow you to leverage more buying power, not to allow this kind of scam. The skill should remain in the game, but the mechanics should be alterered, either the consequences for running out of capital should be far more severe, or, orders which cannot be completed should not be visible in the market.

While negative balances would be nice it fails because of the potential to create isk out of nothing. The most workable change would be to require that the cash placed in escrow for an order is always sufficient to cover the minimum buy quantity, whenever a purchase happens more money is moved from the character's wallet into the escrow fund, and if there's insufficient cash then the order is cancelled at that point. This works nicely for buying piles of goods, the margin trading functionality remains intact in function, but it breaks down for the traditional MT scam mechanic. However, it also breaks down if you're buying single items, such as ships, then the escrow account needs to contain 100% of the cash, this is an acceptable compromise compared with people who have suggested removing the skill entirely.

If you think margin trading needs a fix then consider voting for me in the CSM Election.

Skye Aurora is a 7 year old Girl Who Wants to be on the CSM! Unfortunately, the Lawyers say you have to be 21 - oh well.

Lady Spink
Pator Tech School
Minmatar Republic
#88 - 2012-03-08 09:41:58 UTC  |  Edited by: Lady Spink
...
Lady Spink
Pator Tech School
Minmatar Republic
#89 - 2012-03-08 09:42:14 UTC
Skye Aurorae wrote:
This is the kind of game mechanic abuse I would push CCP to fix, I don't think the existing CSM is that anxious to push for a fix since they're largely dominated by nullsec alliance members. I have no problems with scamming, but margin trading scams are abusing flaws in game mechanics, the intent of the margin trading skill was to allow you to leverage more buying power, not to allow this kind of scam. The skill should remain in the game, but the mechanics should be alterered, either the consequences for running out of capital should be far more severe, or, orders which cannot be completed should not be visible in the market.

While negative balances would be nice it fails because of the potential to create isk out of nothing. The most workable change would be to require that the cash placed in escrow for an order is always sufficient to cover the minimum buy quantity, whenever a purchase happens more money is moved from the character's wallet into the escrow fund, and if there's insufficient cash then the order is cancelled at that point. This works nicely for buying piles of goods, the margin trading functionality remains intact in function, but it breaks down for the traditional MT scam mechanic. However, it also breaks down if you're buying single items, such as ships, then the escrow account needs to contain 100% of the cash, this is an acceptable compromise compared with people who have suggested removing the skill entirely.

If you think margin trading needs a fix then consider voting for me in the CSM Election.



Are you crazy? Ccp should not touch it, but they should give players a possibility to consult an agent to check the available escrow. Most ppl i scam send me mails like : "that was totally awesome" or "you got me there, have fun with the isk's :)" so no, ccp should definately not fix something that is not broken. It is one of the best lessons in life, if it is to good to be true, dont trust it.
Strategos
Echelon Research
Goonswarm Federation
#90 - 2012-03-08 14:13:27 UTC
Lady Spink wrote:
Skye Aurorae wrote:
This is the kind of game mechanic abuse I would push CCP to fix, I don't think the existing CSM is that anxious to push for a fix since they're largely dominated by nullsec alliance members. I have no problems with scamming, but margin trading scams are abusing flaws in game mechanics, the intent of the margin trading skill was to allow you to leverage more buying power, not to allow this kind of scam. The skill should remain in the game, but the mechanics should be alterered, either the consequences for running out of capital should be far more severe, or, orders which cannot be completed should not be visible in the market.

While negative balances would be nice it fails because of the potential to create isk out of nothing. The most workable change would be to require that the cash placed in escrow for an order is always sufficient to cover the minimum buy quantity, whenever a purchase happens more money is moved from the character's wallet into the escrow fund, and if there's insufficient cash then the order is cancelled at that point. This works nicely for buying piles of goods, the margin trading functionality remains intact in function, but it breaks down for the traditional MT scam mechanic. However, it also breaks down if you're buying single items, such as ships, then the escrow account needs to contain 100% of the cash, this is an acceptable compromise compared with people who have suggested removing the skill entirely.

If you think margin trading needs a fix then consider voting for me in the CSM Election.



Are you crazy? Ccp should not touch it, but they should give players a possibility to consult an agent to check the available escrow. Most ppl i scam send me mails like : "that was totally awesome" or "you got me there, have fun with the isk's :)" so no, ccp should definately not fix something that is not broken. It is one of the best lessons in life, if it is to good to be true, dont trust it.



Scamming is one thing, abuse of game mechanics is a completely different thing. This is not a scam. Stop comparing this **** to life.

If you idiots want to continually compare eve to real life then lets bring in another lesson from life, if you scam you go to jail and pay a heavy fine and can lose everything you own....oh wait..we dont want that lesson in eve...shut up and stop freakin comparing the two and justifying that because it can happen irl it should be able to happen in eve...because in rl you go to jail, nothing happens to you in eve, you just move to the next alt/scam.

Anyway, like I said, this is less of a scam and more of an abuse of game mechanics.
Cearain
Plus 10 NV
#91 - 2012-03-09 19:48:01 UTC
Bloody Wench wrote:
You're right it's not new, and yet every time it takes less than a day for someone to fall for it.

So here it is laid out, let there be no more guilt about it.




I think the reason this works is because:

1) It doesn't work the same as margin trading in the real world - yet ccp deceptively calls it "margin trading."

2) the actual way it works in the game is not explained in the game.

Until either point changes there will always be new people entering the game who misunderstand how "margin trading" works in game.


It may have been a "clever" scam the first time someone did it. But like the other 99% of eve scams that people keep spamming you no longer need to be clever.

Make faction war occupancy pvp instead of pve https://forums.eveonline.com/default.aspx?g=posts&m=53815&#post53815

Cearain
Plus 10 NV
#92 - 2012-03-09 19:56:37 UTC
Ajita al Tchar wrote:
Arloeswr wrote:
OK,

So if I understand this correctly. They (CCP) just need to put in a check to see if they have the full amount of money in their wallet. If so great, if not then when the person tries to sell this, they go into a negative isk balance. This is what happens with real margin trading.


Assuming the negative balance after margin trading fail mechanic, what about something like this: a trader puts in a buy order for, say, 500mil and doesn't have enough money to cover it after paying the 25%. Someone sells to this order, walks away with 500mil, the trader has a very negative balance, and the trader character gets biomassed to be replaced with another one. Free 500mil!

That sounds like it would be possible unless some other restrictions are introduced...


They could make it impossible to biomass a character with a negative balance. That would make things a bit tougher.

Make faction war occupancy pvp instead of pve https://forums.eveonline.com/default.aspx?g=posts&m=53815&#post53815

Strategos
Echelon Research
Goonswarm Federation
#93 - 2012-03-09 20:30:18 UTC
Cearain wrote:
Ajita al Tchar wrote:
Arloeswr wrote:
OK,

So if I understand this correctly. They (CCP) just need to put in a check to see if they have the full amount of money in their wallet. If so great, if not then when the person tries to sell this, they go into a negative isk balance. This is what happens with real margin trading.


Assuming the negative balance after margin trading fail mechanic, what about something like this: a trader puts in a buy order for, say, 500mil and doesn't have enough money to cover it after paying the 25%. Someone sells to this order, walks away with 500mil, the trader has a very negative balance, and the trader character gets biomassed to be replaced with another one. Free 500mil!

That sounds like it would be possible unless some other restrictions are introduced...


They could make it impossible to biomass a character with a negative balance. That would make things a bit tougher.



Negative money is not the way to fix this, because it's basically free money at that point.

Make it so you can't set a minimum required amount to "sell to you" if you're margin trading.

Basically make it so they can't have it set so that you have to sell all 5,000 units at once if full cash is not in the wallet. Make is so you can sell 1 item at a time to margin traders and it can't be set that you HAVE to sell all 5,000 units at once to get that price. This will fix it for the most part.


Lady Spink
Pator Tech School
Minmatar Republic
#94 - 2012-03-10 00:10:58 UTC  |  Edited by: Lady Spink
Strategos wrote:



Scamming is one thing, abuse of game mechanics is a completely different thing. This is not a scam. Stop comparing this **** to life.

If you idiots want to continually compare eve to real life then lets bring in another lesson from life, if you scam you go to jail and pay a heavy fine and can lose everything you own....oh wait..we don't want that lesson in eve...shut up and stop freaking comparing the two and justifying that because it can happen irl it should be able to happen in eve...because irl you go to jail, nothing happens to you in eve, you just move to the next alt/scam.

Anyway, like I said, this is less of a scam and more of an abuse of game mechanics.


Are you kidding? Irl the margin trading scam would reveal dumb people who have no clue about the markets (like all our pension fund managers). No mortgage vehicle broker has been put to jail while they are masters of margin trading scamming.

There is no abuse of game mechanics at all. It is very simple. Don't buy anything you don't need and don't press the advanced trading button unless you can afford to loose all the isk in your wallet.There is also an other rule in eve: don't un-dock if tears will fill your eyes when your ship does not survive your journey (take a cheaper ship)

Besides that the thrill ppl have when they believe they are going to make huge profit in 10 seconds and the tears they have 5seconds later, that will keep them hooked to eve.
Lady Spink
Pator Tech School
Minmatar Republic
#95 - 2012-03-10 00:27:28 UTC
David Forge wrote:
I think that allowing for a negative balance to be created when there are insufficient funds would be a very good mechanic. I am not all that concerned about protecting people from being scammed but I do think that it would provide a level of riskiness that margin trading currently lacks. It would add something to the game if a trader had to weigh the benefits of leveraging himself for greater profit while being at risk of over-leveraging himself and being susceptible to incurring large debts due to overly risky behavior.



This would make me gazillionair in 5 minutes.

Please csm put this through :)

If you dont have one, Build alt, train 12. Days, transfer alll your cash place buy order for something for all your money for example if you have 80 billion. You make a buy order of 404% x80bil of a type-d blabla module. Order says: 242bil is the possible buy order for 1000 of these units.

Take main toon, selll 1000 of these units for a total of 242bil. Boom money quadrupled!

Go to alt acc make new toon (dont bio the first one, that is illegal) and repeat. 242bilx4 .. ... Etc
Scrapyard Bob
EVE University
Ivy League
#96 - 2012-03-10 08:57:51 UTC
As has been stated before, unless you completely break how the margin trading skill works - there is no fix for this and it will always be a "buyer beware" issue.

The people who fall for this are those who get greedy. Who don't stop and look at the market graph, or check other sources of information. Which serves as a very good lesson about one of the top rules in EvE - "if it looks too good to be true, it's a scam".

If you got bitten by the scam, congratulations, hopefully you learned something as a result.

The only reasonable adjustment that CCP *might* make would be to color-code or hide buy orders which cannot currently be filled due to lack of funds in the wallet. But that may have negative effects on the database performance and not be worth the trouble.
Strategos
Echelon Research
Goonswarm Federation
#97 - 2012-03-10 18:35:38 UTC
Lady Spink wrote:
Strategos wrote:



Scamming is one thing, abuse of game mechanics is a completely different thing. This is not a scam. Stop comparing this **** to life.

If you idiots want to continually compare eve to real life then lets bring in another lesson from life, if you scam you go to jail and pay a heavy fine and can lose everything you own....oh wait..we don't want that lesson in eve...shut up and stop freaking comparing the two and justifying that because it can happen irl it should be able to happen in eve...because irl you go to jail, nothing happens to you in eve, you just move to the next alt/scam.

Anyway, like I said, this is less of a scam and more of an abuse of game mechanics.


Are you kidding? Irl the margin trading scam would reveal dumb people who have no clue about the markets (like all our pension fund managers). No mortgage vehicle broker has been put to jail while they are masters of margin trading scamming.

There is no abuse of game mechanics at all. It is very simple. Don't buy anything you don't need and don't press the advanced trading button unless you can afford to loose all the isk in your wallet.There is also an other rule in eve: don't un-dock if tears will fill your eyes when your ship does not survive your journey (take a cheaper ship)

Besides that the thrill ppl have when they believe they are going to make huge profit in 10 seconds and the tears they have 5seconds later, that will keep them hooked to eve.



You're an idiot for having no idea how margin trading works IRL while trying to argue about it's legitimacy in EVE. There is no risk for the one putting up buy orders, at all, in EVE. In RL the risks go both ways, you can make a large profit, or you can sink into a hole you can't get out of, which is why suicide rates are what they are in the business.

Just stop. You will never win this ******** argument. Ever.

The issue of margin trading abuse (not a scam, but an abuse of game mechanics) needs to be addressed. End of story.
Lady Spink
Pator Tech School
Minmatar Republic
#98 - 2012-03-10 19:02:35 UTC
Strategos wrote:


You're an idiot for having no idea how margin trading works IRL while trying to argue about it's legitimacy in EVE. There is no risk for the one putting up buy orders, at all, in EVE. In RL the risks go both ways, you can make a large profit, or you can sink into a hole you can't get out of, which is why suicide rates are what they are in the business.

Just stop. You will never win this ******** argument. Ever.

The issue of margin trading abuse (not a scam, but an abuse of game mechanics) needs to be addressed. End of story.



No, the story just begins. Once upon a time, in the US. people bought houses. blablablabl... jadajaajjajdaja....
the mortgage vehicle companies + the rating offices (all in the hands of US banks) had no risk at all. (just like margin trading)

anyways, you cant end a discussion because you believe that you are the only one with the correct answer. If this would be a regime, you could be compared with the north korean leader. not sure if you want to be associated with that. (ingame ofc, everybody would)

Margin trading mechanics can not be abused. it is NOT possible. Eve Chat however should be removed from the game, because you are always right and there should be no discussion or communication. this would immediate clear up the scamming texts. so, good idea for you, go for it!
Arloeswr
Federal Navy Academy
Gallente Federation
#99 - 2012-03-11 01:55:13 UTC
Lady Spink wrote:
Strategos wrote:


You're an idiot for having no idea how margin trading works IRL while trying to argue about it's legitimacy in EVE. There is no risk for the one putting up buy orders, at all, in EVE. In RL the risks go both ways, you can make a large profit, or you can sink into a hole you can't get out of, which is why suicide rates are what they are in the business.

Just stop. You will never win this ******** argument. Ever.

The issue of margin trading abuse (not a scam, but an abuse of game mechanics) needs to be addressed. End of story.



No, the story just begins. Once upon a time, in the US. people bought houses. blablablabl... jadajaajjajdaja....
the mortgage vehicle companies + the rating offices (all in the hands of US banks) had no risk at all. (just like margin trading)

anyways, you cant end a discussion because you believe that you are the only one with the correct answer. If this would be a regime, you could be compared with the north korean leader. not sure if you want to be associated with that. (ingame ofc, everybody would)

Margin trading mechanics can not be abused. it is NOT possible. Eve Chat however should be removed from the game, because you are always right and there should be no discussion or communication. this would immediate clear up the scamming texts. so, good idea for you, go for it!


The Mortgage melt down has nothing to do with margin trading... In real life Margin Trading is basically like a credit card. You are given a loan (technically a Margin Account), to buy or sell a stock/bond/whatever and you have to pay that back, or you go into debt. Which has very real consequences financially speaking. Like they take all your assets that your account holds to make up the difference.

Which is why I made the comment about putting your wallet into a negative balance that had to be paid back.

If they made the cost of the skill for Margin Trading a lot higher than it is right now, upwards of a few hundreds of millions, and then implemented a negative isk balance if someone tried the scam. They'd have to do a pretty large scam, in order for creating a character, training it up, running the scam, then deleting and remaking a new character. It wouldn't become a fees-able scam unless you're talking large amounts. The other thing is that if that doesn't work your isk balance should be checked if someone tries to sell you the goods, and if there is not enough isk to fulfill the order it the sale gets rejected.
Lady Spink
Pator Tech School
Minmatar Republic
#100 - 2012-03-11 11:16:11 UTC
Arloeswr wrote:

The Mortgage melt down has nothing to do with margin trading... In real life Margin Trading is basically like a credit card. You are given a loan (technically a Margin Account), to buy or sell a stock/bond/whatever and you have to pay that back, or you go into debt. Which has very real consequences financially speaking. Like they take all your assets that your account holds to make up the difference.

Which is why I made the comment about putting your wallet into a negative balance that had to be paid back.

If they made the cost of the skill for Margin Trading a lot higher than it is right now, upwards of a few hundreds of millions, and then implemented a negative isk balance if someone tried the scam. They'd have to do a pretty large scam, in order for creating a character, training it up, running the scam, then deleting and remaking a new character. It wouldn't become a fees-able scam unless you're talking large amounts. The other thing is that if that doesn't work your isk balance should be checked if someone tries to sell you the goods, and if there is not enough isk to fulfill the order it the sale gets rejected.



I'm am not talking about the mortgate meltdown, i am talking about the way the US banks used systems to sell "secure" mortgages to Europe/Japan (their biggest allies) while this was just a big margin trading scam because the "security" (escrow) was gone once they wanted the product (money).

Anyways, even if you make the skill 5 billion and allow negative ISK, i would make a gazillion ISK within 1 hour.

The clear point is, that there are not many people who really understand how the margin trading is working. and even less know how to setup a good margin trading scamm.

Everyone on this topic who says that a negative wallet should be allowed, is dumb, analphabetic or just ignorant. sorry to say it this way, but there is no other option.