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Virtual MMO Currency Trading Crippled By Fraud

Thanks to Terra Nova for pointing to the Gaming Open Market website, home of "the next generation of [MMO] game commodity trading", where there's an announcement that: "Until further notice, Gaming Open Market will be closing its doors to all game currency trading except Second Life." There's more information in a post at the official Second Life forums, where Jamie Hale explains: "Yesterday, I had a user breeze through spending over $3000 USD on [EVE Online] and [Star Wars Galaxies]. Immediately after taking delivery of the ISK and credits, he reversed all the payments, claiming he never received the goods. This is a well-known loophole in PayPal's seller protection policy. Basically, I have no recourse at all. PayPal accepts no form of proof of delivery except physical waybills (UPS, FedEx, etc)."

21 of 110 comments (clear)

  1. The thief e-mailed and confessed? by whoda · · Score: 5, Insightful

    Quit messing around with Paypal, and call the District Attorney where the guy lives.

    He has admitted he commited fraud, get him arrested and see him in court.

    1. Re:The thief e-mailed and confessed? by harlows_monkeys · · Score: 2, Insightful
      Quit messing around with Paypal, and call the District Attorney where the guy lives. He has admitted he commited fraud, get him arrested and see him in court.

      Good idea. District Attorneys work hard, and could use a good laugh now and then.

      To get the DA interested, the seller would have to be selling something that they actually have a right to sell.

  2. Awwww, poor baby can't run his crappy gaming site by schild · · Score: 2, Insightful

    From the thread:

    "So basically, we're out $3000, or about 70% of our profits since January. And to be completely honest, it hurts."

    Sorry, you sir need to get into a new business. The one you are currently in sucks for you, sucks for the game, and sucks for the people playing the games. MMORPG's are NOT a job. People who are spending real money for in-game advantage through third parties should be shot in the street for being so stupid.

    That said, you're an idiot for using PayPal. Blame yourself, not the person that caught you with your pants down.

    --
    schild
    editor, f13.net
  3. Had a friend with the same experience by Oz0ne · · Score: 5, Insightful

    What you need to do is ship a cd to the buyer with the codes to access the virtual items/characters.

    That is a physical delivery, and paypal WILL support you and help you solve your problem. Very sad that you had this problem, but you need to make sure to use any/all services you subscribe to your advantage and not blindly trust in your customers. There are a lot of people that will do you much worse than a couple thousand given the opportunity.

    1. Re:Had a friend with the same experience by timlee · · Score: 5, Insightful

      That has a lot of disadvantages because many legit buyers look for "instant delivery" and "24/7 service." If you want someone to wait 2 to 5 days for a CD to arrive with access codes to how they can get the goods they paid for when there are hundreds of other sellers out there who are willing to ship instantly, then you are going to lose that customer plain and simple.

      I think PayPal, with its current policies, is not geared to serve virtual trading. There needs to be a service that can verify virtual delivery of virtual goods. However that in itself is a problem because game developers are generally against the real life trading of their virtual goods that they technically still own.

      The line between virtual and physical goods is still very defined. The cooperation of game developers is needed in order to cross this line and for safe transactions to occur.

    2. Re:Had a friend with the same experience by rmach · · Score: 3, Insightful

      Well you could ship the CD with tracking numbers and as a courtesy send "unofficial" ones through electronic means so they could don't have to wait. Hey, could you ship a CD to the guy who defrauded you and claim you delivered to paypal.

  4. Re:Awwww, poor baby can't run his crappy gaming si by Schezar · · Score: 4, Insightful

    People who are spending real money for in-game advantage through third parties should be shot in the street for being so stupid.

    Now, why is that exactly? Let's look at the situation.

    Person A spends 20 hours a week playing MMOX to build up his level 245 Necromancer Dark Elf Paladin. He then enjoys playing the game as such.

    Person B spends $200 on a level 245 Necromancer Dark Elf Paladin. He then enjoys playing the game as such.

    Frankly, I don't see any objective difference between the two. Granted, the specific gaming experiences for players A and B are different, but externally they're the same. One spends his time, the other, his money. Both to play A GAME! IT'S A GAME! GAME!!! It's supposed to be FUN! FUN! GAME!

    Games are NOT serious. Player B didn't enjoy working through a level grind to get the character he wanted, or maybe he makes enough per hour to justify the expense. Either way, it's all for the sake of fun. Just because he has fun with the result, while you have fun with the process, doesn't mean he's any different from you.

    You see, these are GAMES. You play them to have FUN. Not everyone has fun in the same way.

    So, my question is basically why does this suck for the game, and for the people playing games, if the purpose of a game is to have fun?

    --
    GeekNights!
    Late Night Radio for Geeks!
  5. Re:Awwww, poor baby can't run his crappy gaming si by Winterblink · · Score: 3, Insightful
    Sorry, you sir need to get into a new business. The one you are currently in sucks for you, sucks for the game, and sucks for the people playing the games. MMORPG's are NOT a job. People who are spending real money for in-game advantage through third parties should be shot in the street for being so stupid.

    The best argument I've heard thus far FOR the practice of buying MMO items and money is that some people simply don't have the time to play as much as others. To some it's not a big deal to spend some cash to get themselves to the point where the powergamers already are at. I'm not saying I agree with the tactics of the fraudulent bunch out there, but I don't think executing people for legitimately spending their money as they see fit is a valid argument either.
    --
    "I'm a leaf on the wind. Watch how I soar."
    -Hoban Washburn
  6. Re:Awwww, poor baby can't run his crappy gaming si by schild · · Score: 4, Insightful

    It sucks for the game because the person who bought the level 245 Necromancer Dark Elf Paladin is skipping the majority of the world that the developers put their blood, sweat and tears into.

    It sucks for the players (not all of them) but the ones he might interact with because having skipped the majority of the game, in all likelihood, doesn't know shit about the game and will wreck nothing but newbie havok upon those stupid enough to group with him.

    MMOGs are a game, yes. But it's also a type of business that relies on player retention. When someone skips from the beginning to the end the chance of retention is probably dropped about 90% because the only thing the player will take part in is the endgame.

    The person who played 20 hours a week may very well have catassed his way up there. But I can guarantee you he'll generate more free PR through word of mouth than the guy who dropped his wad on a pre-leveled character.

    Doesn't sound like you play MMOGs much.

    --
    schild
    editor, f13.net
  7. Re:Awwww, poor baby can't run his crappy gaming si by Slider451 · · Score: 2, Insightful

    Not completely disagreeing with you. But MMORPGs go well beyond games for a lot of people. They are environments for social interaction with other humans. As such, the word "game" is almost derisive.

    And I rarely heard my fellow EQ players 5 years ago call the level grind fun. City of Heroes might be a different story from what I've heard.

    --
    Nostalgia isn't what it used to be.
  8. Good by lowmagnet · · Score: 3, Insightful

    Now if a certain development house (NCSoft) would just kick Chinese IPs from their NA servers like they did to NA IPs on their Korean servers, I can start really playing, and I can safely ignore cries of RANG RANG and 999999 from ebay/etc. adena farmers.

    Finally, one less site selling in-game stuff for money. Almost every MMO has a policy against this, but they do it anyway. It has to stop. It is cheating. I don't care about any arguments about the time it takes to do X in the game. Why not just create an idspispopd equivalent? That's what developers are doing if they don't at least fight this.

    --
    Heute die Welt, morgen das Sonnensystem!
  9. Mail them codes by FesterDaFelcher · · Score: 3, Insightful

    Mail them a piece of paper that has the codes on it. They have to sign for the letter, they are liable.

    --
    My user number is prime. Is yours?
  10. Re:Irony of Headline by obsid1an · · Score: 2, Insightful

    No. Defrauding someone like the guy in this article did is illegal. Show me a court case or law proving that selling virtual goods is illegal. Simply put, it isn't. There is a difference between being against the EULA (which selling money and items in MMOs usually is) and being against the law.

  11. Re:Awwww, poor baby can't run his crappy gaming si by Danse · · Score: 4, Insightful

    It sucks for the game because the person who bought the level 245 Necromancer Dark Elf Paladin is skipping the majority of the world that the developers put their blood, sweat and tears into.

    So what? If he paid for the game like everyone else, then the devs got their money for their blood sweat and tears.

    It sucks for the players (not all of them) but the ones he might interact with because having skipped the majority of the game, in all likelihood, doesn't know shit about the game and will wreck nothing but newbie havok upon those stupid enough to group with him.

    And that's different from about 90% of the rest of the idiot players how exactly?

    MMOGs are a game, yes. But it's also a type of business that relies on player retention. When someone skips from the beginning to the end the chance of retention is probably dropped about 90% because the only thing the player will take part in is the endgame.

    How is this the player's problem? If the devs made the game more interesting in the beginning instead of just a leveling treadmill, then maybe people would be more inclined to play all the way through.

    The person who played 20 hours a week may very well have catassed his way up there. But I can guarantee you he'll generate more free PR through word of mouth than the guy who dropped his wad on a pre-leveled character.

    Again, that's someone else's problem, not the player's.


    --
    It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
  12. Re:Wow by Lordfly · · Score: 2, Insightful

    Definitely more artists and creative types. There had a "waiting list" for approval by the developers, to make sure you didn't say anything offensive. in SL, pretty much anything goes. The creative output of the playerbase is nothing short of amazing.

    --
    hookers and grits.
  13. Re:Awwww, poor baby can't run his crappy gaming si by Winterblink · · Score: 2, Insightful
    Doesn't sound like you play MMOGs much.

    That's a pretty unnecessary statement. I'd venture to say he's played them enough to know full well what the phrase "level grind" means. Well enough to understand why some people will spend real world money on preleveled characters to skip the whole process.

    Personally, I play several MMOs, and I'm the type who levels his character through the conventional means, grinding away. Because for ME, it's about experiencing the game the developers created -- that's FUN to me. But for some, it's not. *shrug*
    --
    "I'm a leaf on the wind. Watch how I soar."
    -Hoban Washburn
  14. This is why I hate PayPal by PktLoss · · Score: 4, Insightful

    PayPal seems to try and market itself as the new way to pay for things online. However it is completely incompatible with any sort of online only system.

    I work for a small software company, $20 buys you the current version of our software, and all future versions for free. You pay via paypal, use the software for a while, then force a refund since (as has already been mentioned) there is absolutely no way for us to contest it. The PayPal resposne boxes just don't work allow for anything other than a tracking number. You get the refund, and we get squat.

    This is only moderatly bad for us, I can delete the account, so there is no real loss (apart from my time). But take a company like www.TransmissionFilms.com, if they took PayPal and random client B watched a movie, then reversed payment, they have no recourse. And worse than that, they might be contractually obligated to pay the creator of the film $X since the film was watched.

    I think that PayPal needs to step up and embrace the technology that allows it to thrive. Allow merchants to specify exactly what will be provided during registration (ie username, password, account name, etc), and possibly some third party way of validating that data. The customer would be presented with information on exactly what PayPal thinks they should be receiving, at time of purchase. The fraud department would also need to be staffed with people, not drones, to deal with issues that arised thereafter.

  15. Re:So... by Carnildo · · Score: 2, Insightful

    Who's going to start the first escrow service for gamers..

    GamingOpenMarket was.

    --
    "They redundantly repeated themselves over and over again incessantly without end ad infinitum" -- ibid.
  16. Re:Not surprised by the lack of factual arguements by Ohreally_factor · · Score: 2, Insightful

    No, it's not cheating, it's market forces at work. As much as you'd like you MMORG to be seperate from RL, it's not. The very foundations of commercial MMORGs are based on the market. That's why you're paying a subscription fee, that's why the developers get paid, etc., etc.

    "Time is money" is a cliche of capitalism, but it's still true. Right now, I have some guys doing yardwork for $8/hour, because my time is more valuable than $8/hour. Sure, I could do the work myself; it's probably great for character building and would give me a real sense of accomplishment.

    I think part of your problem is that you've fallen for the fantasy that these virtual worlds are somehow egalitarian, that everyone starts out on a level playing field. Sadly, it's not so. Obviously, those that join the game early, and play steadily will be more powerful and wealthy than someone joining much later. And what are these powerful characters to do with their surplus goods? Trade or barter or give them away. (Even those that give them away might in effect be bartering for allies, no? Or even creating good will? Remember, good will has a cash value in the real world.)

    The external market for virtual property is a natural extension of the capitalist underpinings of the commercial game. Capitalism and competition aren't infecting the game, they are the basis of the game, the reason why a company chose this means of creating wealth to begin with.

    That's just the way it is. If you don't like it, I'd suggest finding a noncommercial game to play or creating your own. However, since we all live under capitalism one way or another, and time still equals money, I doubt a noncommercial game can stay "pure" forever.

    --
    It's not offtopic, dumbass. It's orthogonal.
  17. Re:Not surprised by the lack of factual arguements by V_M_Smith · · Score: 3, Insightful

    There is no difference between a player who cheats at poker and one who buys his way into a specific position in an MMORPG.

    There is a world of difference. Poker is a zero-sum game. In order for me to succeed, you must lose. Any MMORPGs I've played do not have that property -- in general, everyone can go along being happy, killing things that get in their way, finding treasure, making bandages, whatever.

    You might not want to hang out with with a level 75 Monk n00b, but you may also not want to hang with a jerk who's worked his way up to level 75 who's going to killsteal and make a pain of himself. One can be just as damaging as the other.

    The solution? Don't hang out in-world with people you don't like. Whether they've catassed their way up, or bought an ubercharacter shouldn't make a difference. Live and let live.

  18. Re:ROFL... PWND by Anonymous Coward · · Score: 1, Insightful
    Looks like you have no clue as to what the game is about. Second Life encourages people to sell items and transfer the money to hard currency.

    I know this is /., but damn can't you at least read the comments above yours before making sure everyone knows your an idiot?

    And no I am not new here :)